Where does the time go? As 2023 quickly comes to a close and we jump into 2024, the B2C landscape promises to hold new opportunities to deepen customer relationships. How brands foster customer loyalty will bring some foundations back to the table and will launch new advances in customer management into action. Here are the top three B2C trends you can expect to see in 2024.
1. Take back control
If the theme for 2020–2022 was ‘protect the customer relationship at all costs’, 2023 into 2024 will shift pressures to ‘develop a more reasonable relationship with customers.’
We can all agree that 2020–2022 brought about unprecedented challenges with unpredictable outcomes. The COVID-19 pandemic and the associated economic impact, supply chain disruptions, rising food prices, surging global inflation… the list goes on.
It’s unsurprising that 80% of global retail consumers said that knowing they were paying the lowest price for a product was important when choosing where to buy on an ongoing basis (Kognitiv Global Loyalty Insights, 2023). This price sensitivity puts pressure on brands to amplify generosity in savings, shipping, and the overall customer experiences.
With inflation forecast to drop under 4% in 2024, Kognitiv expects businesses will shift their focus aggressively back to profitability. We don’t expect to see brands being as ‘gracious’ with their customers; instead, they will ask them to demonstrate deeper commitment in exchange for receiving elevated experiences.
A great example of this is Delta’s announcement this fall. Delta Air Lines announced a major overhaul of its key value proposition for the customer relationship – its SkyMiles loyalty program. Beginning in 2024, gaining Diamond, Platinum, Gold, or Silver Medallion status will become more expensive for members. Delta continues to promise its investment in the customer experience for all SkyMiles members, such as delivering free Wi-Fi on all flights. However, starting in 2024, members will need to spend more to get more of the elevated benefits Delta had previously offered to members with status (e.g., free checked bags and drink vouchers).
Our POV at Kognitiv. It’s okay to share some of the load with your customers, but remember to keep the core value proposition top-of-mind. No one wants to deliver a message to their customers saying, “We probably went too far.”
To read more about the next two trends, click here!