Customer loyalty, once the cornerstone of retail success, is now a fleeting concept. It’s tougher to earn and tougher to keep. Even though price sensitivity and economic fluctuations are typically beyond retailers’ control, they are increasingly impacting consumer behavior. To stay ahead, retailers must focus on what they can control, like engaging customers where they spend a lot of time – on their mobile devices.
According to a recent Statista report, mobile e-commerce sales reached $2.2 trillion in 2023, making up 60% of all global e-commerce sales. By 2027, mobile e-commerce is expected to surpass $3.4 trillion in sales, driven by rising demand.
Mobile-First Experiences Must be Guided by Thoughtful Strategy
Traditionally, customer loyalty was built through consistent quality and brand trust. Today, however, it’s about convenience, personalization and immediate engagement. Offering exceptional mobile experiences built on those key drivers is vital to customer retention.
With 67% of Americans cutting spending due to economic concerns, attracting new customers is increasingly difficult. To remain competitive in this unpredictable landscape, adopting a mobile-first strategy is not just an option for retailers – it’s a necessity.
Businesses that prioritize mobile-first experiences are better positioned to capture and retain customers. A designated strategy enables businesses to connect with customers where they are, and do so with greater effectiveness and efficiency. Merely making contact is no longer enough. Retailers must ensure seamless, accessible and convenient mobile engagement across devices. Simplifying the customer journey through mobile-optimized websites and apps creates streamlined interactions that enhance customer satisfaction and foster loyalty.
AI and Data are Essential for Mobile Experiences
In the coming years, retail’s biggest opportunities lie in harnessing data and AI to drive business growth. Continued brand patronage has become increasingly contingent on technology’s ability to deliver hyper-personalized end-to-end journeys. To achieve this, retailers must optimize marketing spends to uncover valuable insights and maximize ROI.
Specifically, AI amplifies marketing efforts by identifying the most effective channels and strategies, pinpointing high-value customer segments. Data-driven decision-making enables businesses to craft personalized touchpoints that align with the unique preferences, needs and behaviors of each customer. This customization boosts allegiance and retention. However, data usage also means navigating evolving data privacy regulations, which can pose challenges.
To maintain customer trust and credibility, businesses must prioritize compliance and keep pace with regulatory changes. The impending cookieless future also demands innovative solutions to track customer behavior and preferences. To remain competitive, retailers must stay agile and adapt quickly to changing consumer habits, tastes and expectations.
Mobile-first experiences are the key to unlocking sustained customer loyalty. But it’s not enough to funnel data and AI into building seamless, personalized journeys that fuel retention and growth. To thrive, retailers must also navigate evolving data privacy regulations and stay ahead of consumers’ shifting preferences. Prioritizing customer trust through innovation will drive the industry forward.
Dave Fazekas is the Managing Director, Consumer Industry Team at Further, a leading data, cloud and AI company focused on helping companies turn raw data into the right decisions.
