Meet Todays Aussie Consumer

This week I received a copy of the Shopify Australian Retail Report, a deep-dive into shifting consumer behaviours and evolving pathways to growth for Australian retailers.

As part of the report, Shopify surveyed over 1,000 consumers, 200 Australian business leaders and captured industry informed recommendations from Brand Collective, Accent Group, Culture Kings, Who Gives a Crap, July, Boody and many more leading retail brands.

What Can We Learn From The Report

The current macro economic environment may be daunting, but there are still opportunities! Leading retailers are embracing automation, new markets and diversified product positioning to drive efficient growth. And, they’re prioritising omnichannel to connect with Aussie shoppers.

“Australians are a pragmatic people. Against the backdrop of a tough economic climate, a large number of consumers are thinking more carefully about what they buy, with value for money becoming a prominent factor in the decision-making process behind purchases.”

Shifting shopping preferences in Australia are seeing consumers fall into defined behavioural categories.

👉🏼 Can you spot your customer type(s)?

Key findings:

As living expenses rise in line with inflation, price has become a key priority. Most (93%) consumers surveyed said they had bought products from a different brand than they normally would, with price cited as the deciding factor by close to half (49%). This is a behavioural attribute shared by several consumer personas, most notably among Value Valuer (51%) and Savings Seeker consumers (63%).

👉🏼 Price isn’t everything. The availability of stock was cited as the reason for a brand switch by more than a third (37%) of consumers, a motivation shared by Value Valuer, Loyal Local, Savings Seeker, and Picky Purchaser consumers.

👉🏼 Convenience, a big deal among Loyal Local, Savings Seeker, and Picky Purchaser consumers, was a reason cited by 36% of respondents overall to switch brands. Convenience is linked to customer experience — the better the experience, the more convenient the purchasing journey.

👉🏼 But one thing is clear: when it comes to getting customer experience right in the post-COVID era, an omnichannel approach is key. With a reasonably even spread of online and in-store preferences among consumers — even if Social Shopper consumers have a definite bent towards online — being able to curate the customer experience across all channels is essential.

Is brand loyalty dead?

Not entirely, it seems. More than a third (36%) of Australian consumers have favourite brands they always shop from, most prominently among Picky Purchaser consumers.

Factors that drive consumer brand loyalty:

 

"It's long been known that while performance marketing drives revenue growth, it is brand marketing that drives profitability," 

Source: James Hurman, co-founder, Tracksuit

Product purchases by product type

The report determined that buyers have their preferred channels for certain product purchases. Items such as books, magazines and consumer electronics are more likely to be purchased online where as items such as snacks, groceries, medicine and formal footwear will be an in-store purchase.

What Aren't We Buying Now

The Role of Social Media

Social media is playing an increasingly important role in driving purchasing decisions. Picky Purchaser and Mindful Moneybags consumers, for example, are most likely to buy a product on impulse after discovering it on social media. Some of the top social media or internet platforms where consumers find products include Facebook, YouTube, Instagram, TikTok, and Twitter.

Unsurprisingly, the influence of social media is particularly prominent among younger generations, overly represented among Value Valuer, Mindful Moneybags, and Picky Purchaser consumers, compared to Baby Boomers, who are most notably present among Savings Seeker consumers.

Where Does Opportunity Lie for Business Owners

As a business owner, operational efficiency is cited as a top priority for retailers to find a way to protecting margin while still meeting the demands of consumers around value and price.

Two key technology opportunities have been identified in AI and Automation for increasing efficiency in business.   They can be applied across business in a number of functions.

👉🏼 Top 5 use cases for AI and Automation among retailers are:

1. Improving employee experience 
2. Enhance customer online experience 
3. Predictive analytics 
4. Customer service inquiries 
5. Content creation

Overall, the report has identified the need and desire of Australian Retailers to create and manage an omnichannel approach to consumer engagement.

Omnichannel defined:

An approach to sales, marketing and customer support that seeks to provide customers with a seamless and unified brand experience, regardless of which channel they use.

This report provides some solid insights into the hearts and minds of the Aussie consumer, and what is driving their behaviour when considering purchases.  How can you take these findings and apply them to your business?

• Use the customer personas identified within the report as a reference point for your own customers. What insights and learnings can you take from these personas and consider them in your business when it comes to product development, messaging, pricing, customer experience, innovation...
• Are you viewing the entire customer journey and touchpoints so you offer a full omnichannel experience?
• Have you considered how you can adopt and implement the benefits of AI and Automation to provide efficiencies for your business?

👉🏼 Grab Your Copy

If you’d like to take a deep dive into the report, grab your copy of the full report here: https://bit.ly/3rlFksE

❓ Need some guidance - get in touch today to find out what you can do to ensure your business is being mindful of todays Aussie consumers mindset.