The results show that this year, 92% of Aussie retailers will invest in improving their business. Their goals are to boost revenue (33%), reduce costs and increase efficiency (25%), identify innovative products (20%), and improve customer experiences (19%).
GLOAccording to a report by the Australian Bureau for Statistics (ABS) retail volumes continued to decline for the third consecutive quarter. As a result, consumers are focusing their spending on essential items, prompting retailers to find strategies to navigate the challenging times ahead.
Survival hinges on understanding and addressing customer demands, which necessitates a customer-centric approach. Adyen’s 2023 Retail Report reveals that 62% of consumers desire more personalized discounts from the retailers they patronize, 43% expect businesses to recall their preferences and past shopping behaviors for tailored shopping experiences, and 62% would exhibit higher loyalty to retailers offering online purchases with in-store returns.
Customer desires for personalization, loyalty, and convenience stem from the aspiration to be recognized and valued as unique individuals with distinct needs. Personalization, in particular, holds transformative potential.
Merely focusing on price considerations for goods and services would be an incomplete perspective. Tailoring offerings to individual customers cultivates a sense of exclusivity and bolsters the retailer-customer relationship. Incorporating personalized discounts and remembering customer preferences showcases investment in customers, particularly during times of reconsidered spending habits.
Loyalty programs have gained significance as part of the customer experience. Consumers seek rewards for their spending, especially in challenging economic climates. However, the key lies in ensuring discounts are relevant, as half of Australians find loyalty programs rarely align with their actual preferences.
Convenience is another critical facet. The demand for seamless and flexible shopping experiences is burgeoning, with Australians expressing loyalty to retailers offering omnichannel experiences. A substantial majority (62%) state that they would abandon purchases if their preferred payment methods were unavailable, whether in-store or online.
Overlooking these values could expose retailers to diminished demand. In a rapidly evolving retail landscape, coupled with a retail recession, retailers must carefully consider the tools at their disposal to gain heightened insight into customer preferences.
To effectively address evolving consumer needs, businesses must delve deeper into customer preferences and behaviors. While retailers possess a wealth of customer data, gaining true insights can be challenging without the right tools. The adoption of a unified commerce approach, harmonizing in-store and online experiences, offers an opportunity to leverage data for valuable insights.
Tools like Adyen’s Data Connect for Marketing can help link anonymous in-store transactions to shopper profiles, driving tailored customer loyalty programs and informed shopping experiences.
By aggregating real-time data from various channels and payment methods into a centralized view, retailers can gain a comprehensive understanding of their customers’ preferences, purchase timing, and preferred payment methods.
Rather than relying solely on third-party data, retailers must leverage tools and their own data to gain a nuanced comprehension of customer needs and stimulate demand.
In the face of a retail recession, a customer-centric strategy is essential. As consumers exercise caution in spending, retailers must cater to individual preferences and provide customized shopping experiences that foster a sense of exclusivity and strengthen customer connections. By adapting to customer needs, retailers can not only navigate the recession but also drive demand and flourish in an evolving retail landscape.
Access full report here.
