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Cultivating Customer Loyalty Through Relationship Design

In today’s fast-paced world, consumers face a constant stream of messages, making it increasingly difficult for brands to stand out and for customers to commit. Relationship design is emerging as a key strategy to reduce churn and foster long-term brand loyalty. By crafting thoughtful customer interactions – whether in person or online – brands can create spaces where they feel safe, supported, and valued. This approach builds trust, encourages engagement on their terms, and instills the confidence they need to spend freely.

A cornerstone of relationship design is the concept of "feedback loops." Actively seeking customer input allows brands to refine their offerings and continuously strengthen connections with their audience. As brands scale, maintaining these relationships requires systems that enable consistent engagement and feedback to ensure the bond remains strong over time. This dynamic helps brands stay attuned to evolving needs while demonstrating a genuine commitment to their customers.

Human connection is at the heart of relationship design. Personalized emails, meaningful social media interactions, and attentive customer service are just a few ways brands can cultivate trust and authenticity. Additionally, brands that authentically live out their values and mission resonate more deeply with consumers, particularly when those values align with the consumers' own beliefs.

Ultimately, relationship design goes beyond selling a product or service—it’s about crafting meaningful experiences that inspire repeat business and transform customers into brand advocates. When executed effectively, it’s a win-win for both the brand and the consumer.

In this episode of The New Mainstream podcast, Cairo Marsh, Founder & Executive Partner at relativ, shares insights on how brands can thrive by fostering a culture of care and connection through relationship design.

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The Evolution of E-Commerce in Mexico

Although the COVID-19 pandemic accelerated the shift to digital for many consumers, e-commerce in Mexico had already been experiencing steady growth prior to the pandemic. According to the 2020 "Impact of COVID-19 on Online Sales" report by the Mexican Association of Online Sales (AMVO), app-based sales in Mexico surged by 90% from April to June of that year. Additionally, 19% of respondents predicted that by 2021, e-commerce would make up more than 30% of their total sales.

While technology has become more accessible and online shopping platforms offer greater variety and convenience, they are not the only option for many consumers. To better understand Mexico's e-commerce landscape, ThinkNow conducted a nationwide quantitative survey, analyzing data by gender, socio-economic level, and age. The study provided valuable insights into online shoppers’ behaviors, including the influence of reviews, holiday shopping trends, and spending expectations.

Click here to download the report.

Shopping Habits

The trend of online shopping continues to gain momentum, particularly among younger consumers and those in higher socio-economic segments. Our findings reveal that three out of five Mexicans shop online, although it is important to note that shopping remains a blend of physical and digital experiences. In certain segments, physical stores continue to play a crucial role, primarily due to the need to interact with products before making a purchase—an experience that digital platforms cannot fully replicate.

There is also a clear relationship between socioeconomic level and online shopping frequency, with higher-income segments conducting more digital transactions. Our findings highlight a significant need for financial solutions tailored to lower socio-economic segments, as limited access to electronic payment options remains a key barrier to online shopping. It's also worth noting that younger generations, particularly Millennials and Generation Z, are the most frequent online shoppers.

What Do Mexicans Buy Online and How Often?

The way Mexicans shop online varies depending on where they live and their socio-economic level. However, we find that, on average, 45% of Mexicans shop online at least once weekly. Middle-lower socio-economic status (C- and D+) tend to shop less frequently. Among the most commonly purchased products online are clothing, personal care accessories, and grocery items, highlighting the range of product categories acquired online.

Competitors and the Convenience of Online Shopping

Consumers use a variety of retail apps for online shopping, with Walmart being a popular choice. However, Mercado Libre and Amazon have emerged as the top two leading e-commerce platforms. While Temu and Shein are newer entrants to the Mexican market, they have quickly surpassed several competitors in converting brand awareness into user engagement.

What does e-commerce offer to Mexican consumers? Primarily, the convenience of shopping from home at any time of day which is especially appealing to younger generations. In fact, seven out of ten consumers learn about current promotions through store apps or websites, followed by social media. This allows retailers to leverage exclusive online deals and discounts to attract and engage consumers.

Devices and Reviews

Smartphones have become the primary device for online shopping and are closely linked to how users discover promotions. Another key factor influencing online purchase decisions is customer reviews and ratings. Millennials and Gen Zers, in particular, place more trust in reviews than older consumers, who tend to base their decisions on other factors. Additionally, the importance of reviews decreases as socio-economic level rises, with reviews being most significant for consumers in the AB/C+ socio-economic segments.

Holiday Shopping

Nearly all consumers plan to make purchases during the holiday season, though not all intend to do so online. A primary reason for this is the desire to avoid potential shipping delays during this high-demand season. Amazon and Mercado Libre remain the preferred online retailers for holiday purchases, with these platforms being more popular for year-end shopping than regular purchases—likely due to guaranteed delivery promises and special seasonal offers.

For the 2024 holiday season, almost half of Mexican consumers plan to spend more on gifts compared to 2023, whereas others plan to maintain their current spending levels. Boomers are generally more cautious with their finances, but Millennials are willing to spend more during this season. The estimated average holiday spending is 1,800 pesos, with some variations depending on the demographic group.

Key Takeaways

The growing demand for e-commerce in Mexico will continue to expand, offering year-round opportunities for retailers, particularly during the holiday season. While physical stores remain essential for certain segments, retailers must pursue an omnichannel approach, seamlessly integrating both online and offline experiences to meet the evolving needs of consumers.

Click here to download the report.  

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