Over half of Australian retailers agree that “personalisation is important for high quality customer interactions,” according to the latest retail report from CBA.
Just a short time ago, CommBank released its second edition of retail insights which included a wide range of analyses of the retail sector in Australia. We thought we'd take a moment to reflect on that report as CBA looks to release the third edition in the coming days. ACA Research conducted quantitative online research over five weeks involving 382 decision makers from small, medium and large retailers from across Australia.
The research targeted four key retail sectors; homewares & hardware; food & liquor; clothing & footwear; and other retail. The combined numbers provide some captivating insights into the current state of retail as well as making compelling future predictions.
Among the priorities for businesses, personalisation will continue to play a vital role with 52% of businesses agreeing that personalising the customer experience is critical to their overall strategy. Looking ahead, 16% plan to make personalisation a key priority.
On the flip side however, 15% of businesses surveyed ranked personalisation as a low priority with 2% ranking it as ‘not important’. With 28% of retailers claiming that personalisation has in fact boosted sales, it may very well be a risky business decision to ignore what is clearly becoming a vital piece of many businesses CX strategy puzzle.
Although the effect on the bottom line may be clear, the idea of personalisation is resonating with consumers with 68% saying they’re more likely to return to a store that remembers them and their purchase history. Even more compelling, 82% claim that they’re likely to spend more money if they feel valued.
Having the Right Data
Online retailers have a tremendous advantage when it comes to gathering and tracking shoppers. The data and analytics gathered can be cleverly used for providing a better more seamless online purchase experience which will ultimately lead to repeat purchasing.
Yet even with the ability to track customers, many online retailers say the “lack of high quality data remains a key barrier to effective personalisation,” according to the report.
Nearly 83% of businesses agree that this lack of data is preventing them from achieving a higher level of personalisation.
The way forward appears clear and positive over the next year as consumers can expect to benefit from better customer experiences and higher levels of personalisation both online and in many cases in store as well.
Want more insights into the retail sector? Listen to the podcast between CBA's Jerry Macey and ACA Research's Steve Nuttall.
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