TheOptimove2023SurveyofB2CMarketers

Insightsandtrendsonmarketingstrategiesandtechnologiesimpactingcustomerloyalty

retention

acquisition

churn

CLV

personalization

zero-partydata

first-partydatacampaignautomationcustomerloyalty

marketingROI

Source:Optimove2023SurveyofB2CMarketers

TheOptimove2023SurveyofB2CMarketers2

EXECUTIVESUMMARY

Reportsrevealthatfindinganewcustomercancost

fivetimes

morethanretaininganexistingone.Inaddition,sellinganexistingcustomerhasa

60-70%

successrateversusa5-20%ofsellinganewcustomer.

Yet,thesurveyresultsinthisreportshowthatmarketerscontinuetoallocatemorebudgettoacquisitionmarketingversusretentionmarketinginthefaceofeconomicuncertainty.TheU.S.FederalReservecommentedinMarch2023that“Consumerspendingwasgenerallyseenasflattodownslightlyamidcontinuedreportsofmoderatepricegrowth.”

Plus,

trendresultsofthreerecentOptimovesurveys

showthatconsumers’plannedshoppingbudgetsareunpredictable.InAugust2022,nineteenpercent(19%)ofconsumersplannedonspendingmore,inFebruary14%,and22%inMarch2023.

Thissurveyrevealsissuesthatcouldholdmarketersbackfromshiftingmorebudgettocustomer-ledretentionmarketing.Italsorevealsacertaindifficultyinadaptingtonewtechnologiesthatdrivedeeperconnectionsandpersonalizationtotheirconsumers.

Ofnoteisthatmanymarketersaremissingacrucialcoreingredienttohighlyeffectiveretentionmarketing:extractingthemostvaluefromfirst-andzero-partydata.

Customer-ledmarketingisthebasisforabrandtodeliverdeeperpersonalization,equatingtobetterretentionandimprovedcustomerlifetimevalue(CLV).

Theconsultingfirm,

McKinsey&Company

,reportedaboutcustomerledmarketing.Itnoted,“Onthedownside,compensatingforthevalueofonelostcustomercanrequiretheacquisitionofthreenewcustomers.Ontheupside,80percentofthevaluecreationachievedbytheworld’smostsuccessfulgrowthcompaniescomesfromtheircorebusiness—principally,unlockingnewrevenuesfromexistingcustomers.”

Source:Optimove2023SurveyofB2CMarketers

TheOptimove2023SurveyofB2CMarketers3

Keyresults:

1.Marketerscontinuetobudgetmoreforacquisitionversusretention,despiteuncertaintywithconsumerspending.

2.Marketerssaytacticsthatdeliverthemostbangforthebuckareretention/churnpreventionandincreasingCustomerLifetimeValue(CLV).

3.Marketersrespondedthatcostsofacquisitionandretentionmarketingareup.

4.Marketersincreasedigitalmarketingspendespeciallyforscalingpersonalizationtoimproveretention.

5.Quickerresponsetimeiskeyindeepeningcustomerrelationships.Todoso,thetoppriorityformarketersisdetecting,prioritizing,andexecutingresponsestoreal-timeevents,whichdeliversthehighestvaluewhenoptimized.

6.Almosthalfofmarketers(49%)donothaveastrategyinplaceforcollectingzero-partydata,while42%donothavestrategiesforfirst-partydata.

7.Respondentsnotedthetopmarketingmistakesincustomeroutreachthathaveanegativeimpactonthebrandarethefollowing:a)toomanymessagescausingmarketingfatigue,b)conflictingmessagesandpromotionsacrossdifferentchannels.

8.Mostmarketers,eighty-eightpercent(88%),increasedthepercentageof,orareplanningtoincreasetheirautomatedmarketingcampaignstodelivermorerelevantpersonalizedmessages.

Methodology

TheOptimove2023SurveyofB2CMarketersqueried221seniorlevelmarketingexecutivesinthesecondquarterof2022.ThesurveywasdesignedbyOptimoveandfieldedbySurveyMonkey.RespondentsincludedexecutivesatcompanieswiththefollowingB2Cmodels:digital-firstmulti-brand,wholesalemanufacturers,traditionalmulti-brands,digital-firstdirect-to-consumer,andtraditionaldirect-to-consumerretailerswithbrick-and-mortaroutlets.RespondentsincludedCEOs,CMOs,andSVPsofmarketing.

Source:Optimove2023SurveyofB2CMarketers

TheOptimove2023SurveyofB2CMarketers4

DETAILEDFINDINGS

Despiteuncertaintywithconsumerspending,marketersbudgetmoreforcostlyacquisitionoverretention

Marketerscontinuetobudgetmoreforacquisitionversusretention,despiteuncertaintywithconsumerspending.

Theresultsshowthat54%ofmarketersarebudgetingmoreforacquisition,comparedto13%whobudgetmoreforretention.Theremaining33%splitthebudgetevenly.

Marketersbudgetmoreforacquisitionvs.retention

60%

50%

40%

30%

20%

10%

0%

54%

33%

13%

Budgetmore50–50Budgetmore

forretentionforacquistion

Theresultsshowlittleornochangefromour2022results:52%allocatedmorethanhalftocustomeracquisition,15%allocatedmorethanhalftocustomerretention,and33%saidtheysplitthebudgetequally.

Source:Optimove2023SurveyofB2CMarketers

TheOptimove2023SurveyofB2CMarketers5

Ofnoteisthatithasbeenreportedthatfindinganewcustomercancost

fivetimes

morethanretaininganexistingone.Inaddition,sellinganexistingcustomerhasa

60-70%

successrateversusa5-20%ofsellinganewcustomer.Plus,thevalueof

onelostcustomer

canrequiretheacquisitionofthreenewcustomers.And,80percentofthevaluecreation

achievedbytheworld’smostsuccessfulgrowthcompaniescomesfromtheircore

business

—principally,unlockingnewrevenuesfromexistingcustomers.

Unpredictableconsumerspending

Theresultsarereportedasconsumerspendingremainsflat.AccordingtotheApril10th

BeigeBookReport

issuedbytheU.S.FederalReserve,“Consumerspendingwasgenerallyseenasflattodownslightlyamidcontinuedreportsofmoderatepricegrowth.”

Plus,

trendresultsofthreerecentOptimovesurveys

,showthatconsumers’plannedshoppingbudgetsareunpredictable.InAugust2022,nineteenpercent(19%)ofconsumersplannedonspendingmore,February14%,and22%inMarch2023.

Percentofconsumerswhoplanonspendingmorecomparedtothe

sametimeperiodinthepreviousyear

25%

20%

15%

10%

5%

0%

22%

19%

14%

August2022February2023March2023

Source:Optimove2023SurveyofB2CMarketers

TheOptimove2023SurveyofB2CMarketers6

BestROIMarketingTactics

Respondentssaymarketingtacticsthatdeliverthemostbangforthebuckare

1)retention/churnprevention,and2)focusingoncustomerlifetimevalue(CLV).Thegreatestpercentofrespondents(28%combined)didnotethatshiftingmarketingresourcestowardsretention,customer-ledmarketingandincreasingCLVwilldeliverthehighestimpactandgrowthtotheircompanies.Thiscomparedto13%ofmarketerswhofeltthatacquiringnewcustomerswouldhavethemostbusinessimpact.

Marketingtacticsthatwilldeliverthehighest

impact/growth/improvementinthenext12months

Shiftingresourcestowardscustomermarketing(retention/churn-preven-tion/re-activation,etc.)

Increasingcustomerlifetimevalue(CLV)

Acquiringnewcustomers

Increasing/shiftingbrandawareness/positioning

Investingin/upgradingmarketingtechnology/automation

Improvingleadquality

Automatingmoreofmymarketingcampaigns

Creatinganddeliveringpersonalizedcustomerexperiences

Prioritizingdata-ledcampaignsovercreative-ledinitiatives

Improvingpost-purchaseloyalty/re-purchase

14%

14%

13%

11%

10%

9%

9%

8%

7%

6%

0%2%4%6%8%10%12%14%16%

Source:Optimove2023SurveyofB2CMarketers

TheOptimove2023SurveyofB2CMarketers7

Costsofacquisitionandretentionmarketingisup

Allmarketersnotedthatthecostsofbothacquisitionmarketingandretentionmarketinghaveincreasedinthepastyear.Fifty-sixpercent(56%)ofrespondentssaidthatthebudgetforcostofacquisitionmarketinghadatleastslightlyincreased,while48%saidbudgetsforcostofretentionmarketinghadatleastslightlyincreased.Thisisinthefaceofthedatathatshowsthatfindinganewcustomercancost

fivetimes

morethanretaininganexistingone.

Howthecostofacquisitionmarketingchangedinthepastyear

Signi?cantlyincreasedSlightlyincreased

Nochange

SlightlydecreasedSigni?cantlydecreased

Idon’tknow

16%

56%

increase

40%

22%

14%

7%

1%

0%5%10%15%20%25%30%35%40%

Howthecostofretentionmarketingchangedinthepastyear

Signi?cantlyincreasedSlightlyincreased

Nochange

SlightlydecreasedSigni?cantlydecreasedIdon’tknow

16%

48%

32%

increase

26%

16%

8%

2%

0%5%10%15%20%25%30%35%

Source:Optimove2023SurveyofB2CMarketers

TheOptimove2023SurveyofB2CMarketers8

Marketersincreasedigitalmarketingspend,

especiallyforscalingpersonalization

Withthatsaid,marketerssaidthatresponsetime(detecting,prioritizing,andexecutingresponsestoreal-timeeventsaffectingthecustomerrelationship)deliversthehighestvaluewhenoptimized.

Asaresult,mostB2Cmarketersareincreasinginvestmentsforspecificdigitalmarketingstrategiesin2023.Increasedinvestmentsareearmarkedfor1)scalingpersonalization,2)unifyingcustomerdata,3)AI-basedmarketingautomationand4)multi-channelorchestration.Thisalignswithmarketersseekingtoimproveretentionandtheneedformarketerstodeliverahighlypersonalizedcustomerexperience.

Howinvestmentsinmarketingstrategieswillchangecomparing2023tolastyear–2022

70%

60%

50%

40%

30%

20%

10%

0%

63%

58%

57%

53%

30%

28%

21%

28%

16%

14%

17%

15%

ScalingPersonalization

UnifyingCustomerData

Multi-ChannelOrchestration

AI-basedMarketingAutomation

Increase

NoChange

Decrease

Source:Optimove2023MarketersSurvey

Reaching/identifyingrelevantcustomers

remainsatopchallenge

Respondentsrankedthetoptwochallengesinacquisitionmarketingas1)reachingrelevantcustomers,and2)deliveringpersonalizedexperiencestotopprospects.

Inaddition,respondentsnotedthetopchallengeinretentionmarketingisidentifyingvaluablecustomerstoinvestin.

TheOptimove2023SurveyofB2CMarketers9

Executingfirst-andzero-partydatastrategiesremainsachallenge

Havingdeepreal-timeinsightsonfirst-andzero-partydataisatthecoreoftrulyknowingthecustomer.

Yet,almosthalfofmarketers(49%)donothaveastrategyinplaceforcollectingzero-partydata.Similarly,forty-twopercent(42%)donothavestrategiesforfirst-partydata.Whilemorehavesomestrategiesinplace,just17%ofrespondentssaytheyhavefullyexecutedstrategiesforzero-partydata,and22%forfirstpartydata.

Percentofmarketerswith/withoutazero-partydatastrategy

Donothaveanystrategies

Planningtoexecutestrategies

Partiallyexecutedstrategies

Fullyexecutedstrategies

18%

49%

31%

without

strategies

34%

51%

17%

with

strategies

0%5%10%15%20%25%30%35%

Percentofmarketerswith/withouta?rst-partydatastrategy

Donothaveanystrategies

Planningtoexecutestrategies

Havepartiallyexecutedstrategies

Havefullyexecutedstrategies

7%

42%

35%

without

strategies

36%

58%

22%

with

strategies

0%5%10%15%20%25%30%35%40%

TheOptimove2023SurveyofB2CMarketers10

Lackoffirst-andzero-partydatainsightsistherootcauseofmarketingmistakes

Respondentsnotedthetopmarketingmistakesincustomeroutreachthathaveanegativeimpactonthebrandarethefollowing:

?toomanymessagescausingmarketingfatigue,and

?conflictingmessagesandpromotionsacrossdifferentchannels

Theimpactofthefollowingmistakesincustomeroutreachtoyourbrand

50%

40%

30%

20%

10%

0%

47%

46%

43%43%

41%

36%

30%

30%

27%

23%

28%

26%

27%

27%

26%

Differentmessages

receivedbycustomers

sameday

Irrelevantmessages

aspartofthe

customer’sjourney

Con?icting

messages/promotions

acrossdifferent

channels

Toofewmessages

tocustomersduring

agivenweek

Toomany

messagescausing

customermarketing

fatigue

Negative

Neutral

Positive

Thisissupportedbyour

2023MarketingFatigueSurvey

thatrevealedthattwo-thirdsofconsumers(66%)wantfewermarketingmessages,and27%feeltheyarebombardedbymarketingmessages.Whenaskediftheywouldliketoreceivefewermarketingmessagesin2023versus2022,73%notedtheywantless.

Source:Optimove2023SurveyofB2CMarketers

TheOptimove2023SurveyofB2CMarketers11

Mostmarketersareawarethattheymayhaveinconsistentmessagingtoconsumers

Atthesametime,atleast91%ofmarketingexecutivesareatleastsomewhatawareofpossibleinconsistentmessagingorcross-firingcampaignsandpromotions.84%ofmarketersareatleastsomewhatworriedaboutthepossibleinconsistencies-with18%extremelyworried.

Marketers’awarenessofpossibleinconsistent

messaging/cross-?ringcampaignsandpromotions

Extremelyaware

Veryaware

Somewhataware

Notsoaware

Notatallaware

20%

39%

91%

aware

32%

7%

2%

0%5%10%15%20%25%30%35%40%

Degreeofworrymarketershaveaboutpossibleinconsistent

messaging/cross-?ringcampaignsandpromotions

Notworried

Somewhatworried

Worried

ExtremelyWorried

16%

42%

24%

18%

0%10%20%30%40%50%

TheOptimove2023SurveyofB2CMarketers12

Plannedtechchangestoimprovethe

personalexperience

Mostmarketers,ninety-twopercent(92%),areplanningto,orhave,increasedthepercentageoftheirautomatedmarketingcampaignstodelivermorerelevant,personalizedmessages.

Thetopautomationtechnologiesthatmarketersplantoimplementinthenextyearincludemarketinganalytics/multitouchattribution,mobilemarketingplatform,multitouchmarketinghubandwebsitepersonalization.

Technologiesmarketersplantoimplementinthenextyear

MarketingAnalytics/MultitouchAttribution

MobileMarketingPlatform

MultichannelMarketingHubWebsitePersonalizationEngine

SocialListening

CustomerDataPlatform

LoyaltyPlatform

CustomerIdentityManagement

ConsentandPreferenceManagement

PersonalizationPlatform

34%

32%

31%

28%

24%

21%

14%

13%

12%

9%

0%5%10%15%20%25%30%35%

TheOptimove2023SurveyofB2CMarketers13

Inaddition,toptechnologiestargetedforupgrades/replacementsincludethefollowing:

1)loyaltyplatform,2)mobilemarketingplatform,3)websitepersonalizationengine,and

4)marketinganalytics/multitouchattribution.

Technologiesmarketersplantoupgrade/replaceinthenextyear

LoyaltyPlatformMobileMarketingPlatform

WebsitePersonalizationEngine

MarketingAnalytics/MultitouchAttribution

SocialListening

MultichannelMarketingHub

ConsentandPreferenceManagement

CustomerData