Aussie Retailers Are Laggards When It Comes to Mobile & Data: CBA

Aussie Retailers Are Laggards When It Comes to Mobile & Data: CBA
SHARE
THIS



Australia’s retailers recognise the importance of mobile and data yet few are making the kind of investment that will really move the dial and provide the integrated experience consumers crave, says a new report released by the Commonwealth Bank.

The study called CommBank Retail Insights combines an analysis of around three billion dollars in transaction data from CommBank credit cards covering 10 major online retail categories with an in-depth survey of more than 500 retailers in Australia.

According to the report, “Increasingly, online transactions happen on a mobile device, something many retailers recognise as the shape of things to come.” The problem however is that a while majority of retailers already transact over mobile, only about 10 per cent are actively investing in their mobile presence.

On the analytics front the report says three quarters of respondents say an integrated view of the customer is critical, but few are actually investing in integration. Budgets and technological challenges are identified as major impediments.

“The result is that while many multichannel retailers are running separate unintegrated digital and physical channels , there are few very genuine omnichannel operators.” And yet the evidence of the value of a multichannel approach is made clear in the report.

 

cba infographic

“Multichannel retailers have experiences higher growth than there online only competitors, further evidence that customers may be inclined to search online for physical retailers they are already familiar with.”

But the authors also caution that the bricks and clicks brigade also need to ensure those online experiences fulfill the brand promise.

As the study notes, “The bad news is that generating online sales can be challenging. To succeed, as one of a small number of brands preferred by consumers it seems retailers need to optimise multiple aspects of the online experience including search, usability, product range, payments and delivery.”

The report also notes some interesting differences in approach between pure plays and more traditional retailers.

Take mobile for instance. Multichannel operators tend to focus on accessibility and integration while pure plays who lack many of the legacy impediments are more likely to be grappling with apps and social media.

Data driven? L-plates only

Retailers are also lagging on analytics according the CBA report. “Many retailers have an indistinct understanding of their customers.

“Even though three out of four retailers analyse at least one data source to understand customer behavior, most feel they are not effective at auctioning insights derived from their analysis.”

According to Jerry Macey, national manager, retail industry, Commonwealth Bank, “Retailers are acutely aware of the role that channel integration and big data can play in enhancing the customer experience, however, currently few are planning integration as a priority for investment.”

In a statement accompanying the release of the report the bank said that changes in online consumer behavior are driving a substantial growth outlook for online and mobile retail sales

Among the key findings
• Average online transaction value up 14 per cent
• Overall online sales forecast to grow 20 per cent in next year – mobile sales set to double
• 43 per cent of retailers will increase technology budgets in next 12 months
• Two-thirds of retailers positive or unfazed by weakening Aussie dollar
• Just 36 per cent of retailers say they are effective at harnessing big data

The report finds consumers are shopping online less frequently but spending more per transaction, with the average transaction value up 14 per cent year on year.

The report suggests that consumers remain highly selective and loyal. “More than 90 per cent of online shoppers transacting with just three or fewer brands each quarter, and two-thirds of customers shopping online for just one category of goods.”

Online spending increased 14 per cent in the 12 months to 31 March 2015 , the research reveals. And growth is expected to accelerate with retailers expecting a 20 per cent increase in online sales over the next 12 months. Sales over mobile channels are expected to double.

Macey said, “The shift to online shopping is supporting confidence in the retail sector. Retailers are responding by maintaining or boosting investment in technology and introducing new digital channels to capture substantial expected sales growth.

“While businesses are witnessing the rapid pace at which consumer behavior is changing, they are saying they are concerned about the costs associated with technology solutions and marketing.”

The report also finds that, the tradition of smaller, regular purchases of items such as music and books, is being overtaken by sales of categories such as high-end fashion, technology and appliances, albeit on a less-frequent basis.

This article originally appeared on B&T’s sister business site www.which-50.com

Latest News

THIS
  • Advertising
  • Marketing
  • Media

Meet Your Judges For The 2018 B&T Awards!

B&T is calling this year's awards judges probably the finest ever assembled. As a chamber choir, arguably less so.

by B&T Magazine

B&T Magazine
Indie Agency KWP! Snares Tourism NT’s Creative Account
  • Advertising

Indie Agency KWP! Snares Tourism NT’s Creative Account

Tourism NT has appointed KWP! as its lead strategic and creative agency. The independent agency, with offices in Darwin and Adelaide, has won the two-year contract following a competitive pitch in September this year. As the lead agency, KWP! is required to formulate sound strategic insights based on ongoing analysis of market research, consumer insights and […]

by B&T Magazine

B&T Magazine
McCann’s Action-Packed Army Ad Plays Out Like A War Flick Or Video Game
  • Campaigns

McCann’s Action-Packed Army Ad Plays Out Like A War Flick Or Video Game

Most army recruitment ads tend to steer clear of the blindingly obvious of military life – you get a gun to shoot the enemy or you get shot yourself. More so, agencies aren’t overly keen on promoting recruitment ads that are heavy on the guns or violence, preferring lifestyle or technical aspects of military life. Not so McCann’s new action-packed spot for the US […]

by B&T Magazine

B&T Magazine
Are You Dragging The Wrong People Into Pointless Meetings?
  • Opinion

Are You Dragging The Wrong People Into Pointless Meetings?

Donna McGeorge (pictured below) is a speaker and  mentor who helps people make their work work. McGeorge is also author of The 25-Minute Meeting: Half the Time, Double the Impact. In her latest guest post for B&T, McGeorge offers her tips on avoiding every workers’ hell- the pointless meeting… We all complain about having to attend too […]

Opinion

by B&T Magazine

B&T Magazine
Francis Leach Joins The New Daily As Sports Editor
  • Media

Francis Leach Joins The New Daily As Sports Editor

Famed sports reporter Francis Leach has joined online publisher The New Daily as sports editor. A prolific broadcaster, journalist and program host, Leach brings his encyclopedic knowledge of sport and no-holds-barred critical analysis to the role. “Let’s face it, sport these days is big business. I’m interested in connecting and contextualising sport with the big […]

AIME Appoints Eleven To Champion 2019 Vision
  • Advertising
  • Media

AIME Appoints Eleven To Champion 2019 Vision

Eleven has been appointed to manage all PR for the Asia Pacific Incentives Meetings & Event (AIME) 2019, the leading show for the business events industry. Selected by Talk2 Media & Events, Eleven will drive a global PR campaign, working with sister agency FleishmanHillard, to leverage international media networks across Asia Pacific, Europe, Middle East […]

Fox Sports Launches Alexa Skill
  • Media
  • Technology

Fox Sports Launches Alexa Skill

Australian sports fans can now tune into Fox Sports News live on their Amazon Echo device. From today, Alexa users will be able to add the new Fox Sports Alexa skill to their daily routine by asking “Alexa, play the Fox Sports live stream.” The Fox Sports Skill will deliver sports fans a live stream […]