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The 3 Top Marketing Challenges of 2023 and How to Overcome Them

There are many challenges in marketing. If you’ve spent time trying to promote your products and services and gain conversions, you’ll have encountered these difficulties. Reaching new customers while keeping the ones you already have is tough. In short, this is a seriously challenging business. What’s more, those challenges are evolving.

In this guide, we’re looking at three of the biggest marketing challenges for businesses in 2023. And better yet, we’re looking at how you can overcome these challenges.

Let’s get started.

Challenge #1: Data Protection and User Privacy

You need to be responsible with your users’ data – there’s nothing controversial about this. In today’s data-centric age, protection and privacy are hot topics. The problem is that many companies are not going about this correctly, and even if they are, they are not making this known to consumers.

Let’s think about regulatory compliance. Depending on where you operate, you have to work within specific rules and regulations. The problem is that consumers don’t care too much about this. Studies have found that just 25% of consumers know what the General Data Protection Regulation is, while only 10% of consumers in America are aware of the Virginia Consumer Data Protection Act.

But this is not to say they don’t care about data protection. Consumers are happy to share some of their data with companies, but more than 80% are worried about how it is being handled. Around 60% even believe that companies are regularly misusing their data. To combat this, increasing numbers of consumers are using ad blockers and privacy features to prevent data collection.

The Solution:

Reach out directly, build those all-important relationships, and gather data in an honest way. If you are transparent in your data collection – backed up by robust security, of course – you may find that users are more willing to share their information than you realised.

Challenge #2: Increasing Customer Choice and Decreasing Consumer Loyalty

Consumer loyalty is something you really, really want to build. On average, consumers pay around 33% more to brands they are loyal to, with 56% saying they would remain with a brand they are loyal to even if cheaper options are available. For around 81% of customers, brand loyalty is a crucial decision factor when they make a purchase, and 65% of all transactions come from repeat customers.

The trouble is, there’s just so much choice around these days. Yes, customers want to stay loyal, but with so many opportunities for distraction and head-turning, consumer churn is a real issue.

The stressful conditions of the pandemic seem to have driven increasing numbers of consumers to jump ship. Around 43% of consumers said they had cancelled subscriptions or switched providers in search of better customer experiences post-pandemic. At the same time, 39% of consumers said they made a change after being approached directly by a competitor – the desire for loyalty may be there, but true loyalty is hard to come by. Maybe even more worryingly, 21% of consumers said just a single negative experience pushed them into the arms of a competitor, while 20% said they made a change for no real reason.

The Solution:

If you want loyalty in 2023 and beyond, you must work for it. Loyalty programs are still tried and tested for locking in consumer relationships, but you have to focus on delivering genuine value. Consider the customer’s viewpoint and ensure you offer the best support and overall experience at every stage of the journey.

Challenge #3: Changing Definitions of Brand Value

We’ve touched on the idea of “real value”, but what does this mean in practice? A discount is valuable for around 93% of customers, but we’ve already seen that truly loyal customers will not switch providers just because of financial savings. For 91% of consumers, loyalty programs are valuable, but again, we’ve seen that some customers will still jump ship after a single negative experience or for no reason.

Early or exclusive access is considered valuable for about 86% of customers, while 83% say the chance to win a prize in a competition is of value to them. Exclusive content (62%) and joining a user community (58%) are less common definitions of value but still represent significant proportions of your audience.

So, what’s our point here? The main takeaway is that there are many different definitions of value. As a result, it’s becoming increasingly difficult for organisations to understand what their customers want to see and give this to them.

The Solution:

There’s no shortcut here: you need to know what your customers want in a business. Market research, direct outreach, and other techniques can help you better understand what your consumers expect. Then, you can plan how you will deliver this value.

Do Marketing the Right Way in 2023, and Beyond

How do you overcome the challenges of modern marketing? Impressive can help. Reach out to our team and schedule a consultation, or get your Free Marketing Plan today.


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