Here are the top 5 trends that I consider non-negotiable in 2021:
1. Data Ethics
Data privacy is a big deal and with the public getting edgier than ever about the gross misuse of their online browsing data, law makers are intervening
On 1 July 2020, Denmark became the first country in the world to introduce a mandatory corporate legislation for AI and Data Ethics, forcing companies to release public information about how they use their data by as early as 2021. Meanwhile, popular browsers Chrome, Safari and Firefox are all set to block out third-party cookies by 2022, in response to consumer complaints, GDPR laws/regulations, browser reconfigurations and ad blocking tools. These shifts in data usage makes 2021 a good year as any to ready ourselves for a digital world without the highly desirable third-party cookies. We’ll learn to limit our ads to essentially first-party data only i.e. people who have directly registered with us and consented to their data being used. Companies are already tweaking their data privacy rules and building internal privacy strategies to ensure their audiences remain relevant and advertisements do not spillover to people who have no idea how and why they got served those ads.
2. Data Segmentation
Nothing new, but because the way you profile your audience categories is proven to directly affect conversions, smarter segmentation strategies will be essential in 2021
A small number of generic campaigns sent to broad data are out. A large number of smaller, niche campaigns sent to targeted data are in. Micro segmentation strategies and personalized content per data segment are on the rise. A 25 year old Asian musician and a 65 year old European banker may somehow both be part of your target audience but you will need to craft completely different ad campaigns to convert each of them, because their interaction with your sales messaging and conversion journey will likely be poles apart. Data filters (age, gender, income status, device type etc.) must be used in harmony with other targeting strategies (online behavior, purchase history, keywords etc.) to achieve the best results. 2021 will be about how intricately marketers understand available audience data and how intuitively they use it to create multiple campaigns.
3. Ratings & Reviews
True power lies in public opinion. Rating and reviews technology in the hands of consumers is more mainstream than ever, with people freely rating their personal experiences with brands for everyone to see
According to US based developer of consumer engagement technology, Power Reviews, 97% of consumers read product ratings and reviews before making a purchase decision. With high volumes of new businesses and concepts entering markets all the time, causing a flash flood of daily promotions into people’s inboxes, SMS-es, apps etc., people are getting increasingly cautious of newer, less familiar brands and have started checking their ratings/reviews online before buying. Poor rated brands are already getting weeded out by the system. In 2021 more than ever, a good brand building strategy will lie in the ability to create a strong offering complemented with a good online reputation through positive ratings, testimonials etc.
4. AI and Machine Learning
AI has many faces: Artificial Intelligence of Things (AIoT), Mixed Reality (MR), Robotic Process Automation (RPA), Augmented Reality (AR), Virtual Reality (VR), Extended Reality (XR)…it goes on
Pre-2020 witnessed some resistance to this human-like machine intelligence, but 2021 will show that AI adoption is in fact essential for businesses to sustain. “Trained” to turn data into actionable insights, using the right information to make the right decisions at the right time, AI-powered tools will keep getting smarter and become part of our everyday lives. Just like conversational technology, such as Chatbots, is already mainstream in our everyday online experiences, AI will work its way into all facets of life, from education and healthcare to technology and finance (modeling, stock trading etc.). The sooner businesses learn to migrate to AI, the better their first mover advantage in customer retention will be.
- Some common examples of AI are:
- – Expedia’s virtual travel booking agent
- – Google maps
- – Google and Facebook ad targeting
- – Facebook image recognition
- – Amazon product recommendations
- – AIexa, Siri and Google Assistant
- – Waymo’s self-driving cars
5. E-Commerce
2021, still expected to be a horror sequel to 2020, will keep health conscious customers confined to their homes. Lockdowns, travel restrictions and mall closures mean that businesses must reach customers inside their homes through online devices via an omni-channel approach
According to Business Insider, E-commerce sales were worth $3.914 trillion in 2020 with Asia Pacific and North America leading this growth, followed by Western Europe. To fully harness the E-Commerce potential, businesses must optimize their customer experiences and humanize their brand to earn customer trust. More and more businesses are speeding up the launch of their E-Commerce stores this year while exploring the most user friendly fintech technologies, like Amazon Pay, to make the act of buying online as seamless and painless for customers as possible.
So think about working these powerful trends into your digital marketing action plans this year.