Over a third of Australian consumers (38%, the highest globally) agreed a great customer experience critical to retaining their loyalty during the cost of living crisis. That’s according to the latest data from Shopify, which also found social commerce emerging as a leading channel to deliver this experience, as almost three quarters (73%) of Aussies will continue or increase shopping via social media, while nearly a third of Australian businesses (31%) believe that sales through social media will form the largest part of their business by the end of the decade, sitting above global average.
Ahead of the 2022 Black Friday Cyber Monday (BFCM) weekend — an event that last year saw more than 47 million shoppers buying from brands powered by Shopify in 2021 — Shopify surveyed 4,000 consumers and 500 businesses across Australia and New Zealand (ANZ) to learn how the changing economic environment has influenced consumer spending preferences this year, and what retailers are aiming for this holiday season.
“With countless sales channels from social, to bricks and mortar and online, retailers need to take a varied approach if they want to connect to their consumers,” said Shaun Broughton, Managing Director, APAC and Japan, Shopify. “One thing is clear – shoppers and brands alike still need to make important, meaningful connections over the holiday spending spree and beyond. For retailers to thrive, building trust and encouraging creativity are the keys to unlock consumers everywhere they shop.”
“Building and maintaining a strong relationship with our customers is a huge priority for us at July. We devote a significant amount of time and resources investing in our overall customer experience — both online and in store — and continue this even well beyond the purchase date. Our customers have become our best marketers,” said Zhoe Low, General Manager at Australian luggage brand July. “Social media is a huge part of this, as we know our customers are avid users of Facebook and Instagram, and they conduct extensive research prior to their trips. They are educated, considered, thoughtful, and willing to do the research to ensure their luggage purchases are appropriate for their needs and on trend – so we have to ensure we meet them there.”
The findings reveal:
Aussie loyalty is up for grabs if cost-savings can be made, but customer experience critical
- Australian consumers’ loyalty is more tied to customer experience than any other market surveyed, with 38% of consumers saying a great customer experience is essential to retaining their loyalty during the cost of living crisis
- It’s no surprise then, that SMBs across Australia intend to focus their energies for the year ahead on iImproving customer experience (39%) and building their customer base / relationships (41%)
- Australian retailers (91%) are also the biggest believers that building a community around your brand is crucial to maintaining customer loyalty
Consumers are open to new experiences and more willing to shop via social channels
- Nearly a third of Australian businesses (31%) believe that sales through social media will form the largest part of their business by the end of the decade, above the global average
- Consumers are open to change and will shop across all surfaces:
- 90% consumers say they will continue to make purchases via an online store
- 73% will continue to shop on social media or dial up purchases
- Businesses are open minded about ways to connect and deliver value to consumers during this time with 83% saying they’re exploring creative ways to help consumers (e.g. through improving customer experience)
Embracing new ways to sell – but high-street remains on hiatus
- Three quarters (79%) of businesses in the region say that selling direct-to-consumer via an online store/mobile app is either the same or more important for business compared to a year ago.
- Despite 89% consumers purchasing the same or more in store as a year ago, Australian businesses were by far the most likely of all polled (just 19% versus 30% globally) to say that physical stores have become less important to their bottom line over the last 12 months.
- Around two fifths (41%) of businesses in ANZ said reaching consumers organically, via word of mouth or social media, was more important than ever, while two fifths (39%) of shoppers said that shopping online was one of the top ways they discovered new products to buy
Having a direct relationship with consumers is more important than ever
- 92% of Australian merchants agree that having a direct relationship with consumers has never been more important
- Knowing that consumers are open to change, and that D2C is key, businesses have a window of opportunity to connect with consumers and secure their attention. In fact, almost two thirds (64%) of consumers in Australia said that how brands communicate with them about BFCM offers is important in determining if they will buy from them.
- Knowing that consumers want to spend but are researching more, brands should engage prospective shoppers ahead of time so they don’t miss out.
About the study
Online survey conducted by Sapio Research, on behalf of Shopify, among 24,009 consumers and 9,012 businesses (under 1,000 employees) across the UK, France, Germany, Spain, Italy, Netherlands, Sweden, Australia, New Zealand, Japan, US and Canada. The survey took place between September and October 2022