Australian Retailers Not Meeting the Needs of Omnichannel Shoppers
Research sponsored by NetSuite Inc., the industry’s leading provider of cloud-based financials / ERP and omnichannel commerce software suites, and the Australian Retailers Association (ARA), has revealed that 52 percent of smartphone users are now using their devices to assist them at some stage of the shopping process.
It has increased from 38 percent in 2011.
The study, conducted by Frost & Sullivan, indicates just how unprepared Australian retailers are to handle this shifting behaviour. Less than 30 percent of retailers currently offer a smartphone-accessible website and only 21 percent have developed a mobile app for customers, despite the fact that approximately 65 percent of the population owns a smartphone.
The Frost & Sullivan study of 120 ARA members (focusing on smaller retailers with less than 50 outlets) was carried out in June 2014 to understand how retailers are adapting to the growing use of mobile devices as an integral part of the shopping process. The study revealed that while most retailers recognise the importance of developing a mobile strategy, many still face major barriers in doing so, particularly the cost and complexity of linking new systems designed to support mobility with existing in-store business systems.
“The rapid growth in ownership and usage of smartphones is revolutionising the way that Australian consumers shop,” said Mark Dougan, managing director for Australia and New Zealand at Frost & Sullivan. “The ability to access the Internet whilst on the move has transformed many aspects of consumer behaviour. Consumers are increasingly using their smartphones for shopping to research, compare, share, purchase and pay for merchandise.”
Leveraging smartphones throughout the shopping process
According to the study, smartphones are not being used purely as a device to make an online purchase, but are an essential element of an omnichannel shopping experience that still often involves the use of a physical store. Almost 40 percent of consumers that start researching a product on their smartphone actually end up buying it in-store. These shoppers are using smartphones throughout the shopping process for researching (29 percent) and evaluating products (19 percent), with only four percent actually making a purchase on their smartphone and three percent writing reviews afterwards.
To support this new generation of omnichannel shoppers, Frost & Sullivan recommends that Australian retailers provide features and services to meet their customers’ mobile needs. The study revealed the features that consumers place value on, including free WiFi (68 percent), stock level information (58 percent), directions to relevant departments (57 percent), customer reviews (50 percent), product information (48 percent) and being able to purchase using their smartphone (43 percent).
Smartphones can also be used instead of contactless cards at the point-of-sale (POS) for in-store payments using near field communication (NFC) technology. Currently, only six percent of retailers in the study offer contactless terminals, although almost 20 percent plan to do so over the next 12 months. As the technology becomes more widely available, Frost & Sullivan anticipates the take-up of smartphone-based payments will continue to rise, as Australian consumers become increasingly confident in using their smartphones as mobile wallets. Currently, only four percent of smartphone users in the study have made a contactless POS payment using their phones, but 30 percent say they are likely to do so once the technology becomes available.
“Australia’s consumers are demanding that retailers provide services and features to support them in their omnichannel shopping process,” said Mr Dougan. “Those retailers who fail to respond to the new era of mobility in shopping face being isolated and left behind as the behaviours of their customers change.”
Australian retailers lagging with mobile strategies
The Frost & Sullivan study revealed that while Australian retailers are making good headway in building their online capabilities, with over 50 percent now having a website and more than 30 percent offering online purchasing capabilities, many are still behind when it comes to customising their online offering for mobile devices. Less than 30 percent of respondents currently offer a mobile-optimised website and only 21 percent have developed a mobile app for customers. Those stores that do provide mobile apps predominantly use them to provide information to customers on their nearest store, opening hours and similar information.
According to Frost & Sullivan, the retailers that do provide mobile apps are generally providing them as part of an omnichannel strategy (i.e. the apps enable purchasing), although a third of retailers still primarily regard the mobile app as a way to stimulate traffic into physical stores. Many small retailers, however, are still failing to provide the in-store facilities that encourage use of mobile devices by their consumers. Only nine percent offer free in-store Wi-Fi and only 22 percent currently have Quick Response (QR) codes in their stores.
The study also indicates that use of mobile devices is not only limited to consumers, with some retailers now equipping their store staff with tablets to allow improved in-store service, such as sharing product information with customers, assisting with local inventory availability and even facilitating online purchases from within the store. Only seven percent of respondents, however, currently provide their sales staff with tablets, and thus are missing out on a major opportunity to enhance in-store service levels and improve customer satisfaction.
Integrated Software Platform to Overcome Challenges
According to the research, whilst most retailers recognise the importance of developing a mobility strategy, many still face major barriers in doing so. Major challenges include hardware costs (e.g. investing in tablets for sales staff), a lack of internal resources to develop an app or mobile site, as well as the cost and complexity of linking new systems designed to support a mobility strategy with existing in-store business systems. Over 50 percent of respondents believe that the software systems that they are using could be improved to allow them to better manage their in-store operations.
“Retailers’ range of existing business systems such as POS, order management, inventory and warehouse management, financials and customer relationship management are often not integrated, requiring multiple re-entering of data and maintaining separate databases for consumers using different channels,” said Mr Dougan. “Adding new front-end channels, such as an app or mobile site, only increases the complexity.”
Frost & Sullivan believes that the latest generation of cloud-based retail software can support retailers in providing mobility solutions both to customers and staff, without the integration complexities and costs that are involved in integrating mobile services with existing business systems. This type of software allows retailers to quickly and easily rollout mobility solutions.
“For years, many merchants have skated by with stripped-down mobile sites and an unsatisfying ‘View Full Site’ escape hatch for advanced tasks,” said Mark Troselj, managing director of APAC and Japan for NetSuite. “This must end in 2014. Mobile buyers won’t tolerate a watered-down experience any longer. It’s time to offer the mobile shopper the complete customer experience, from wish list management to returns.”
Latest News
Young Guns Versus The Old Guard: Who Adds More Value to Our Industry?
What is more important to the advertising industry? Seasoned experience or fresh thinking? That’s the hot topic set to spice things up when the industry’s Debate Club comes to Cannes in Cairns, presented by Pinterest this June. That’s right, the house will debate ‘Young Guns Versus Old Guard: Who Adds More Value to Our Industry? […]
70% Of Aussies Don’t Have Green Power Plans ENGIE Says In Major Brand Campaign Via HERO
Launching today is a new player in the retail energy category, ENGIE. Formally Simply Energy, ENGIE, via HERO will show it’s possible to have both affordable and sustainable options for customers via a major brand campaign. Research shows that over 70 per cent of Australians believe environmental sustainability is the responsibility of government and corporates […]
PrettyGood Launches Offering Brand & Media Solutions For Australasian SMEs
PrettyGood, a brand and media solutions business, has launched into the Australasian market, offering affordable, transparent and unbiased marketing solutions to the underserved and overwhelmed small and medium business (SME) community. Founded by marketing industry expert Hamish Smith (lead image), PrettyGood aims to reset the media and branding landscape by providing honest results without corporate […]
A Blunt End: Dolphins Medicinal Cannabis Sponsorship At Risk
NRL team Dolphins have found themselves at the centre of a Therapeutic Goods Administration (TGA) investigation over their partnership with Alternaleaf, a company that prescribes medicinal cannabis. According to the Sydney Morning Herald, the TGA is reviewing the sponsorship deal over breaches of the Therapeutic Goods Act that bans the advertisement of prescription medicine. The […]
Slew Of New Creative Hires At Leo Burnett Australia
Leo Burnett Australia has announced three new additions to its creative team, with the hire of Lenna Boland as group creative director and two new Associate creative directors, James Beswick and Rowan Foxcroft. Lean Image: Lenna Boland, Andy Fergusson and Julia Sheehan. Boland is a seasoned creative director with more than 20 years of experience. […]
Under Armour Unveils Local “Live in UA” Campaign
Global sports performance brand Under Armour (UA) has unveiled its new brand platform, ‘Live in UA,’ tailored exclusively for the Australian market. The campaign offers a glimpse into the brand’s latest men’s and women’s autumn and winter essentials, which are anything but basic. This locally produced campaign showcases an expanded range of apparel, footwear, and accessories […]
Pepsi Launches New Look, Refreshing Classic Fashion Staples Via Special PR
Pepsi has marked its bold new era with a partnership with emerging designer Jackson Cowden, celebrating not only Pepsi’s new identity, but the reinvention of classic fashion items and conventions, via Special PR. Lead Image: Samantha Harris In partnership with a 22-year-old emerging ‘Digital Fashion Artist,’ the launch of the Pepsi Pulse Collection showcases Pepsi’s […]
Pure Blonde Returns To A Place Purer Than Yours In New Campaign Via The Monkeys
Ultra-low carb beer, Pure Blonde, has partnered with The Monkeys, part of Accenture Song, to relaunch the iconic brand. By re-establishing the original ‘A Place Purer Than Yours’ platform, Pure Blonde is returning to its lush, forested roots: by imagining a world uncorrupted by modern life. The film, directed by Freddy Mandy, features a trespasser […]
Spotlight On Sponsors: Carsales Strikes With Another Storm-Based Team
Canon is set to capture all the action of the 2024 Cliff Diving Championships. Meanwhile, Carsales has solidified its connection with storm-based teams. Lead Image: Harry Grant (Melbourne Storm) and Liz Watson (Sunshine Coast Lightening). Welcome back to B&T’s Spotlight on Sponsors series, where we break down all the major sponsorship news from inside the sporting world. […]
Commission Factory & AGL Energy Ignite Strategic Partnership To Empower Australian Energy Consumers
Affiliate and partnerships marketing platform Commission Factory has announced a strategic partnership with AGL Energy, Australia’s pioneering energy provider with a rich history spanning 185 years. This collaboration marks a significant milestone as AGL Energy embraces an advanced partnership platform for the first time, leveraging Commission Factory’s cutting-edge technology to scale and streamline its partnership […]
Allied Nabs Nicola Gold From Pico International Dubai
Allied Global Marketing (Allied), a full-service integrated marketing agency working with entertainment, consumer and lifestyle brands, has announced the appointment of seasoned executive Nicola Gold as business director APAC, brand experience, effective immediately. Gold assumes a pivotal role in building the Brand Experience offering as part of Allied’s strategy to develop a truly integrated full-service […]
Nine’s Push For Gold, Silver & Bronze Ad Opportunities Could Break New Ground In Broadcasting
Nine insists that AI won't dominate its Olympics coverage. And not merely because Bruce McAvaney doesn't understand it.
TV Ratings (16/04/2024): Toxic City Girls Too Much For Farmer Bert
Fans calling out toxic behaviour on Farmer Wants A Wife, seemingly unaware that's the very premise of any dating show.
Kaimera Wins Afterpay ANZ Media Account
Have couriers even started to mention you're overdoing the online shopping? Probably best to avoid this Afterpay news.
Industry Reacts: Stuff Group Swoops In To Save 6pm News After Newshub Closure
As you'll read here, New Zealand's media's in a right state of flux. And nor have they forgotten 1981's underarm.
a2 Milk Launches “Only a2 Will Do’ Brand Platform In First Work From BMF
A2 milk drinkers tend not to bother everyone with their gut health issues & it's a lesson for vegans & the gluten-free.
Can You Recite It In Under 4 Seconds? Maccas Relaunches Iconic Competition With Modern Twist
Do you know what would make a fantastic ad? Drunk people at 3am trying to recite the ”two all-beef patties"
‘Liar, Liar’: Lehrmann Exposed As High Profile Defamation Case Comes To A Close
Having exhausted all avenues in his defamation case, is there only one option left for Bruce - reality television?
MECCA & Fendi Among Premium Advertisers For oOh!media Woollahra OOH Network Launch
If you've not been to the snooty suburb of Woollahra, the locals would like to thank you again for staying well away.
Yahoo Academy Announces Class Of 2024
This academy is strictly for "emerging leaders". Courses don't include 'sleeping at your desk' or 'bunking off early'.
Top 35 Media Leaders Announced For 2024 TikTok Agency Accelerator Program
Despite the ban threats, TikTok keeps marching on. Cementing its reputation as the Julian Assange of the tech.
AiMCO Announces First-Ever Diversity Webinar To Explore Inclusion In Influencer Marketing
Think influencer marketing's a little on the white side? This free webinar's for you. Sadly, it's not given TV ideas.
Anthony Ellis Promoted To CEO Of Publicis Media Exchange
Anthony Ellis takes the opportunity to thank the office fern in his press photo following recent work promotion.
Indigenous Stars 3% & Jessica Mauboy Fuel New Supercars Campaign Via WILDCARD
Jessica Mauboy brings the tunes to new Supercars campaign. Meanwhile, Shannon Noll promises a revenge best served cold.
Nine Launches New Look Olympic Experience 100 Days Out From Paris 2024
9Now rolls out Olympics push, but can it bring Aussie gold in handball?
Must-Watch Marketers At Cannes In Cairns!
Is there a better conference agenda than Cannes In Cairns, we ask? Sure, Captain Feathersword yet to put pen to paper.
Retail Media Demands A New Organisation Dynamic
There's no denying retail media's become adland's hot button topic du jour. Much like tomato being the soup du jour.
News Corp & NRMA Unite For Urgent Action To Fix Notoriously Dangerous Bruce Hwy
A top road safety initiative from News & the NRMA. If they could turn their attention to potholes next would be ideal.
Facebook And X Ordered To Remove Sydney Church Stabbing Video; Meta Swiftly Responds, X ‘Too Busy’ To Care
Tech giants ordered to stop running video of Monday's church attack. Not that it's bothered most major news sites.
Tara Ford To Serve On Titanium Jury At Cannes Lions
Monkeys seemingly ruling themselves out of back-to-back Titaniums, as agency ECD takes up Cannes red pen & clipboard.
“Be Like A Skunk At A Garden Party”: Author Patrick Radden Keefe On Investigating Pharma
Patrick Radden Keefe (pictured), author of global bestseller, Empire of Pain, talked to B&T‘s Nancy Hromin at the Samsung Jaipur Literary Festival about reputation laundering, aggressive marketing strategies and the privilege of still being able to practice pure journalism and be paid for it. Keefe’s in-depth reporting in publications such as The New Yorker and […]
Stuart Archibald Departs Half-Eponymous Agency, Archibald Williams
Stuart Archibald departs Archibald Williams after 12 years. And, no, it's not for golf & bowlo club-priced schooners.
B&T’s Campaign Of The Month Wrapped: Queensland Health’s Frightening Skin Cancer Campaign, Via CHEP
Queensland's beautiful one day, perfect the next but there's still lots that can kill you - crocs, skin cancer & XXXX.
TV Ratings (15/4/24): Amidst It All, Seven News Is The Most-Watched Program In Australia
Network 10 may have had a win in the courts yesterday but, alas, it appears viewers heard all about it on Seven.
Even More Cairns Crocodiles Awards Judges Added As Entries Go Gangbusters!
Cairns Crocodiles assembling ominous judging panel that just so happens to coincide with B&T's office sponge bake off.
“Bias Influences Who & How We Appoint”: Aimee Buchanan On Why Diversity In Leadership Matters
When Aimee speaks, B&T goes full Vanilla Ice: "Stop collaborate & listen, GroupM boss back with a brand new invention."