2023 is poised to bring new challenges to retailers as uncertainty about the economy continues and consumers focus on getting the most out of their dollar. Luckily, the past few years have provided ample opportunities for retailers to double down on engagement strategies and learn to survive challenging times. Here are three ways retailers can improve customer engagement in 2023.

Consumers will focus on cash back, rewards, and loyalty. 

In a recent consumer survey from Wildfire, 61 % of survey respondents state they "always or often look for coupons/coupon codes, discounts, cashback rewards, or other ways to save on their purchase." While the occasional sale may create a short-term spike in topline revenue, there are other ways to continue drawing in price-conscious consumers. 

Consider another survey result: 78 % of consumers indicated they prefer cash back when asked how they might receive rewards for shopping. Of the other options, far fewer (64 %) prefer points. 

While retailers may not be able to offer cashback rewards directly to their customers, they can participate in popular third-party cashback rewards programs to appeal to rewards-hungry customers. Whatever rewards program a retailer decides on, consumers will be grateful for the help in saving money and, as a result, will be more loyal.

While 2023 will bring challenges, there are still plenty of options that provide value to both businesses and customers alike. 

 Referral programs and affiliate marketing are two options that offer a dual benefit: retailers can be more efficient and direct their marketing spend to performance-based channels, and customers can save money, too.

Referral programs rely on existing customers to invite new customers by offering small incentives when the customer makes a purchase. Retailers can leverage this consumer demand for coupons by ensuring their affiliate program reflects their online store's current discounts or by issuing affiliate-exclusive codes. It's a win-win-win for retailers, affiliates, and customers.

The mere presence of shopping rewards and discounts can affect customer engagement and conversion rates.

For example, 79 % of survey respondents are more likely to complete a purchase when they can earn cashback rewards, and 82 % are more likely to complete a purchase when they have a coupon/discount code. When retailers offer coupons and rewards on their websites or work with affiliates to publicize discounts, today's price-savvy consumers are far more likely to engage with the business.

While it's impossible to predict exactly what's in store for retailers in 2023, there's no doubt the lessons collected over the past few years will be of value. By leaning into convenience, rewards, and personalized offers, retailers may find loyal customers will stick with them, even through difficult times.

Since 2005, Quikstone Capital Solutions has helped thousands of merchants with easy, fast, and flexible cash for all your business needs. A merchant cash advance (MCA) is not a loan; it's a purchase of a small portion of your future credit card transactions. There's a simple, one-page application, and no collateral is needed. Typically, merchants can be approved and have cash deposited in their bank accounts in 2-5 business days.

If you would like to implement any of these loyalty and rewards programs, Quikstone can help with a no-cost or obligation pre-qualification. Start 2023 off right. Grow your business with Quikstone Capital.

Thanks to Total Retail for allowing us to use a portion of the article, Customer Engagement Lessons to take into 2023, written by Michelle Wood.