In this guest post, Partnerize sales director Will Wilson (pictured below) says things may be grim in Australia’s bricks and mortar retail but that just makes the shift to online all the more exciting…
There is no shortage of opinion when it comes to the current state of the Australian economy. House prices have experienced a significant decline, wage growth has become stagnant, and interest rates are at historically low levels. In turn, this has contributed to a “negative wealth effect” — a theory that suggests people spend less when they perceive their assets to be worth less. Put simply, people are feeling less wealthy, which means they’re spending less.
Retail is one of the first victims when consumer spending is curbed, and this is somewhat apparent in today’s Australian retail landscape. We’ve seen established local brands like Big W close multiple stores and global brands like Esprit pulling out of the Australian offline retail landscape altogether.
Yet in the midst of this, it’s exciting to see one area of retail continue to exceed expectations: online. Online retail currently accounts for 8.9 percent of total retail spend, which represents only the beginning of what is broadly referred to as the Fourth Industrial Revolution. It’s imperative that retailers continue to understand ways to capitalise on this growth.
It’s All About Perceived Value
With the negative wealth effect in play, it takes more convincing to get customers to part with their dollars. The best way to achieve this is to create a higher perceived value, and there are multiple strategies you can use:
- Incentivise for a Higher Spend: One of the benefits of targeting online consumers is that you can tailor your discounting approach to influence their basket changes. For example, presenting voucher codes that encourage your customer to hit a certain spend (e.g., $20 off if you spend $150) means the customer’s perceived value is higher, and they’re more likely to increase their basket to get that deal. Another simple, yet effective approach is to introduce free shipping if customers attain a certain basket size.
- Make It Count: Throughout the year, we now have core shopping days where customers are ready and waiting to spend their money. Black Friday and Cyber Monday now represent the biggest week for e-commerce purchases in Australia. So be there front and center to capitalise on the purchases your customers are likely to be making, with or without you.
- Incentivise Online Exclusively: One of the biggest challenges in online retail is basket abandonment. It’s far too easy to add items in and then simply close the browser. So be one step ahead. Incentivise your customers with exclusive online offers that they can’t get elsewhere, and increase their perceived value when they shop with you online.
Incentivise Online Through Offline Tactics
Offline tactics can also help you drive online sales. Here are two key activities that have been proven to work well:
- Customer Loyalty: When a customer shops in-store, it’s often difficult to know how much of their total purchases you are capturing. However, signing up a customer to your loyalty program gives you both visibility on future purchases as well as the opportunity to further promote and encourage sales. By signing up a customer in-store, you can continue to target that customer after they leave your walls with personalised offers based on their purchases and exclusive discounts that drive them to continuously purchase with you — back in-store or on your website.
- Look for Your Customers in Offline Spaces: When you’re trying to drive growth, new customer acquisition is everything. But how wide is your net? By taking the time to understand your potential customers, and their profiles, you can begin to identify offline spaces they’re spending time in. For example, if you’re a fashion retailer, why not have a presence at an upcoming festival, where you can offer new customers incentives to shop with you online?
Expand Your Digital Scope
The media ecosystem has evolved dramatically in the last few years, and it’s no secret that Google and Facebook dominate the acquisition landscape, driving great results. However, the lack of diversity in media has lead to dramatically rising costs, meaning brands are now looking at ROIs that are sometimes only 2:1. It’s imperative for marketers to look at new acquisition channels to drive more online customers and accelerate the growth they’re seeing. One of the strongest ways to do this is through digital partnerships, and there are multiple partner types you can work with:
- Brand Partners: When you’re looking to acquire new customers, take a look at other places they’re spending time. Forming a partnership with a synergistic brand improves your brand perception with target customers and enables you to attract the right customers for you.
- Loyalty and Rewards Partners: Loyalty programs have now become so popular that we’re seeing more and more brands getting on-board. Working with loyalty partners is a great way to incentivise new customers to shop with you by giving them something that is perceived as high value — points! Your options here are endless. You can target customers everywhere from airline reward schemes to loyalty programs run by existing brands they use, such as insurance reward programs.
- Traditional Affiliate Partners: Affiliate partners have come a long way since their inception. Traditional partners like cashback and coupons have immense customer bases and an extremely loyal following. Many also offer advanced targeting capabilities so you can pinpoint the shoppers you need to reach and persuade. By working directly with these partners, you can devise strong growth strategies that will boost your results.
Ultimately, the way we’re spending has changed and will continue to change over the years to come. Brands that are digital-first and understand their customers’ movements both online and offline are the ones seeing true success. Whilst online retail spend may only account for 8.9 percent of sales today, this number of accelerating. Soon it won’t only be important for retailers to focus online — it will be imperative. Long live the Fourth Industrial Revolution!
Please login with linkedin to commentPartnerize
With Google abolishing third-party cookies and Apple continuing to push privacy-first solutions, marketers are on the lookout for new ways to reach engaged customers, while remaining compliant with rules and regulations. To help these marketers, Australian data commercialisation company smrtr has recently released a new whitepaper Through the Looking Glass: The Rise of Hypothesis-based Marketing. The whitepaper looks […]
celebrity chef Manu Feildel, best known for hosting My Kitchen Rules, will see his contract with Seven end this month. My Kitchen Rules, initially a ratings juggernaut for Seven, ended in 2020. Despite persistent rumours that the show would make a comeback in 2022, in a May interview with TV BlackBox, Seven’s director of programming Angus […]
Zurich has been co-principal partner of Melbourne Football Club since 2018 and the sponsorship arrangement broadened in 2020 when Zurich also became Co-Principal Partner of the club’s AFLW team. CEO of Zurich life & investments, Justin Delaney, expressed his excitement at being able to continue the successful partnership. “We’re thrilled to extend our partnership with […]
Isentia media monitoring has conducted a ranking of the top 75 most mentioned CEOs across broadcast, print and online media in Australia from January 1, 2021 to June 11, 2021. Qantas’ Alan Joyce had the most visibility of any CEO, with nearly 20 per cent of total mentions. Unsurprisingly, three of the top 10 visible […]
ARN and The New York Times have reached an agreement for ARN to become the advertising sales representative for The New York Times’s podcast portfolio in Australia. The deal will enable Australian brands to connect with Australian listeners to The New York Times’s most popular podcasts, such as The Daily, Serial and This American Life, […]
Cost continues to hold considerable influence on brand loyalty, yet emotional connections and ethical values are also becoming key loyalty drivers, according to new consumer research commissioned by Emarsys. Emarsys has launched its first annual Loyalty Index which seeks to understand whether ‘true’ loyalty still exists and what it looks like today. The company surveyed over […]
Nine dominated Sunday night, with the launch of Australian Ninja Warrior netting 795,000 viewers as per OzTAM’s metro data. It is the program’s fifth season, showing the Australian public’s apparently unwavering passion for watching incredibly fit people fall off tall objects. The top watched program was Nine News which had 1,064,000 viewers, as compared to Seven […]
The Heart Foundation’s new campaign – Saving Hearts – is a poignant reminder of what heart disease takes away from families while reminding the community that investing in research brings improved outcomes for survivors and their families. Created by DDB Group’s specialist healthcare agency, DDB Remedy, Saving Hearts captures the reality of the life-long impact […]
CHEP has announced the appointment of Justin Ruben as executive creative director, returning from a six-year stint in New York at Droga5 and The&Partnership New York. Leading the team in Sydney, Ruben’s creative talent will complement CHEP’s senior creative leadership team, led by Gavin McLeod, chief creative officer and Glen Dickson, deputy chief creative officer. […]
Verizon Media’s talent program has come to an end for the third year, closing with a hybrid pitch-off event for Musicians Making A Difference (MMAD). The Verizon Media Academy class of 2021, made up of 44 emerging leaders from across Australia and New Zealand media, advertising and marketing industry, were given just one hour to […]
Social purpose organisation UnLtd’s Big Games competition has raised a combined $85,000 for children and young people at risk. Running over five weeks, the competition involved 32 teams from across the advertising, marketing and media industries battling it out virtually for a chance to qualify for the Rocket League final. The tournament culminated in a […]
Stan has announced that the Stan Original Film Transfusion commenced filming in Sydney earlier this week and will premiere on Stan in 2022. Transfusion is a taut, muscular thriller starring Sam Worthington (Avatar) as Ryan Logan, a former Special Forces operative, who is battling to cope with life after the loss of his wife and is thrust […]
According to a decade of data collected by iStock, Australian brands turned to imagery depicting outdated gender stereotypes during the pandemic. Tracking the keyword ‘women’, iStock by Getty Images found that in 2020, ANZ brands and businesses reverted to gender stereotypes. Images of mothers home-schooling were used at almost twice the rate of images of […]
Schwartz Media is congratulating Maddison Connaughton on her three years as editor of The Saturday Paper. Connaughton has decided to finish up her editorship this month. “It’s been an honour to edit the paper,” Connaughton said. “The Saturday Paper is one of the brightest voices in Australian media and I have been happy to see […]
Research from EdBbirdie using Spotify data has identified the most popular songs to study to. After analysing thousands of studying and homework playlists on Spotify, American singer Olivia Rodrigo’s ‘drivers license’ came out as top song to study to. It featured on 48 study playlists, while other top songs included ‘Ophelia’ by The Lumineers, ‘Falling’ […]