12 Omichannel Brand Predictions for 2023

12 Omichannel Brand Predictions for 2023


Kait Stephens

January 10, 2023
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1. Brands will (slowly) begin leveraging AI.

It will take some time to incorporate into workflows, but the potential of ChatGPT and AI content tools have demonstrated the power of AI.

Brands will use AI for content creation, such as product descriptions and social media posts at scale.

AI can be used to improve customer service by providing fast and accurate responses to common questions, and by helping human customer service reps handle more complex issues.

Brands can use AI to personalize the customer experience, such as by recommending products or content based on a person's past purchases or browsing history.

And finally, AI can be used to automate repetitive tasks.


2. TikTok grows as a share of brand’s budget.

Despite looming uncertainties (US banning from government phones), brands will continue to invest in Tiktok given its organic consumer reach.

Gen Z is turning to TikTok for search. 

Not only is it a social media platform, but it’s also an entertainment platform.

TikTok is still in the early infancy stage as a platform which allows more opportunities for arbitrage. 

3. Profitable brands will win.

Let’s face it - we’re probably headed for a recession. 

The S&P is down ~20% in 2022 and interest rates continue to rise. 

Investors have pulled back dramatically, especially investors in brands. 

The brands that survive are the ones that are able to grow profitably. 

That means unit economics and CAC to LTV ratios that make sense.

4. Retention will become a greater focus.

As brands are forced to focus on profitability, they will shift focus from acquisition to retaining their best customers.

Why? Because acquiring a new customer is 5x more expensive than a returning customer.

Brands can use retail and marketplaces for customer acquisition, then seek to retain these customers by acquiring their emails and phone numbers to nurture the customers post-purchase.

Brands will continue to seek recurring revenue from existing customers through subscription programs.

5. An Invigorated Focus on Driving Retail Velocity

The pure DTC go-to-market strategy for brands doesn’t work anymore. 

CACs are just way too expensive and the iOS 14.5 update made it difficult to track attribution.

Every brand I talk to right now is either focused on (1) getting into retail or (2) being successful in retail.

It’s not enough to just get into retail. A brand needs to consistently move product in retail to stay there and maintain good shelf space. 

That means finding ways to drive Retail Velocity. 

And finding new ways to track what is working to rinse & repeat.

6. Amazon’s share of ecommerce will continue to grow.

82% of households have a prime membership. 

Amazon makes up over 50% of ecommerce sales in the U.S.

That growth is going to continue, albeit at a slower rate.

Amazon has surpassed Google for product searches.

Because Amazon makes it so easy for you to find and buy products. 

Brands need to be on Amazon to be where their customers want to shop. 

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7. Amazon Sellers set up Shopify Stores.

Amazon sellers will recognize the importance of having their own brand and set up Shopify stores.

Being successful on Amazon is about optimizing search.

But you have limited opportunity to build a brand on Amazon - you’re just a product.

So Amazon sellers will build Shopify stores and look to retain this customer base.

A direct relationship with the customer (ala customer emails) is critical to nurturing that customer beyond a single purchase. 

QR codes will be the go to tool for Amazon sellers to bring buyers home.

8. The year of marketplace wars. 

Walmart and Target online presences will duke it out with Amazon with deep discounts to get people away from the stranglehold of Amazon.

In order to compete with Amazon’s online marketplace, they’ll improve the onboarding experience for brands to increase access.

They will leverage their physical presence as an advantage to Amazon and enable omnichannel and BOPIS consumer interactions.

Regardless of which retailer or marketplace brands are in, QR codes will help brands bring customers back to the DTC channel. 

9. The winning brands will be omnichannel.

Brands need to meet their customers where they are. That means DTC, Amazon, Retail, and social media.

IRL is back with a vengeance. Customers want to experience and be inspired by brands in person.

We will see a convergence of channels. DTC brands will move into retail and marketplaces. 

Brands will evolve their experience to connect digital to physical to create a connected experience across all of their channels.

10. Brands crack the retail black box. 

2023 will be the year that brands crack the black box that is retail and marketplaces and reclaim the customer relationship.

With the help of QR codes ;). 

Brands will look to capture 1st and zero party data from their retail and marketplace customers.

Because it can be a win-win for brands and retailers.

Brands owning customer relationships will allow them to drive more retail velocity.

They’ll know more about their unique customer at retail to inform product and adjacent product placement. 

11. Customer Experience is King.

With a focus on customer education and brand storytelling via video content.

Content allows you to tell your customers WHY you exist and understand the personality behind the product.

Content allows you to build a brand and differentiate from the commoditized competition.

Content on Facebook, Instagram, and your QR code channel can help you catch the attention of retail buyers - and ultimately drive traffic to be successful at retail.

12. QR Codes as a channel.

If 2022 is the year of QR Code awareness, 2023 is the year that brands use the QR Code as a channel to connect with their customers.

Brands will recognize the opportunity to use QR codes on their product and packaging as a new channel for acquisition, retention,and brand awareness.

This means not just dropping someone on your website.

But being thoughtful about how your customer is engaging with your brand post-purchase and across different channels.

And how a QR Code can facilitate this brand connectivity in a way that is optimized for the channel and the specific interaction.

12 Omichannel Brand Predictions for 2023
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