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THE TOP FIVE TRENDS DISRUPTINGB2C BUSINESS IN 2022 3 /INTRODUCTION 4 /EXECUTIVE SUMMARY 5 /TREND 1: SEAMLESS, FLEXIBLE, OMNICHANNELSHOPPING 8 /TREND 2: TARGETED, PERSONALIZED MARKETING 11 /TREND 3: SHIFTING BRAND LOYALTIES 14 /TREND 4: DATA-DRIVEN BRANDING AND PRODUCTSTRATEGIES 17 /TREND 5: AGILE, DISRUPTION-PROOF STRATEGIES 20/CONCLUSION 21 /SOURCES INTRODUCTION Fromsupply chain disruptions to shipping delays and laborshortages, the COVID-19 pandemic unleashed a broad array ofchallenges for businesses of all sizes and across all industries.Adding to these challenges? Today’s customers are increasinglymoving targets. what are the differentiators between businesses that falter andthose that thrive? Withstanding disruptions, remaining competitive, and maximizingnew opportunities requires businesses to invest in strategies forgathering accurate, actionable data to inform their decisions.They also need agile, adaptable strategies that allow them to As new strains emerge and society struggles to adapt to newrisks and norms, customers have followed suit: Not only havetheir needs and preferences shifted, but they’ve also become lesspredictable. It’s not surprising: Supply chain challenges and laborshortages have tested their brand loyalty, forcing them to choosebetween the products they love and the products they can actuallyget their hands on. Withstanding so many disruptions, remaining competitive, andmaximizing new opportunities requires businesses to invest instrategies for gathering accurate, actionable data to informtheir decisions. quickly respond to and solve unexpected problems. Companiesthat operate on limited, outdated, or inaccurate data will be lessprepared to adapt to market changes, putting their business — andtheir bottom lines — at risk. It’s a reality that’s forced businesses to continuously adapt theiroperations and strategies over the past two years, as they striveto align with customers’ evolving needs and expectations. Forsome businesses, the challenges have proven insurmountable. Atthe onset of the pandemic, 600,000 businesses closed — 200,000more than the annual average. Even so, while many were unable towithstand the pandemic, many others saw an opportunity: In 2021alone, a record high of over *5 million new businesses opened. Above all, however, they need to be forward-looking, using datato not only predict potential problems, but to solve them. In ourreport, the Top Five Trends Disrupting B2C Businesses in 2022,Hanover Research aims to help you identify the trends most likelyto affect your organization and provide actionable, data-driveninsights and analyses that you can apply to your business strategies. It begs the question: In a climate where everyone seems to be atthe mercy of the same pandemic-related and economic challenges, EXECUTIVE SUMMARY THE 2022 TRENDS IN B2C BUSINESSES Hanover is privileged to work with a wide array of businesses around the nation,representing a diverse range of industries and customers. Our work with themallows us unique and meaningful access to their foremost priorities and challenges,along with the opportunity to develop data-driven insights and analysis. Seamless, Flexible, Omnichannel ShoppingToday’s customers expect the ability to shop how they want, where they want, and when they want. Companies will need toadapt their marketing and sales strategies to provide a cohesive,seamless experience across all channels or risk losing customers. This year’s trends were developed by analyzing the most significant challengesour clients and prospects are facing, along with the approaches they’re taking tostrengthen their companies, mitigate risk, and capitalize on new opportunities. Targeted, Personalized MarketingAs customers’ needs and priorities shift, they’ve become more selective about what they purchase and the brands they interactwith. Brands will need to hone and expand their sales andmarketing efforts to target diverse consumer needs. Among what we have learned: 287% The increase in purchase frequency for brands withomnichannel strategies Shifting Brand LoyaltiesWith their priorities changing and many of their favorite products unavailable, many consumers are abandoning rigidbrand loyalties and embracing new ones. While this createsloss potential for some companies, it also introduces growthopportunities for those ready to step in and fill consumer needs. 80% The percent of consumers that are more likely to make apurchase when brands offer personalized experiences 35% The percent of US consumers who tried a new brandsince the beginning of the pandemic Data-Driven Branding and Product StrategiesMore than ever before, businesses are recognizing the role of data in driving meaningful, resonant conversations with customers.To leverage this opportunity and remain relevant amid evolvingcustomer behavior and priorities, brands will need to upgradetheir data-gathering capabilities to quickly collect and adapt toconsumer prefe