The events of the last five years have tested the flexibility and adaptability of Australian retail. As cost of living pressures rise and supply chain issues continue to add tension - there is likely more instability on the horizon.
Earlier this month, Cashrewards benefited from participating in a panel at the Retail Leaders Forum 2023. The event brought together some of Australia's most successful retail executives and decision-makers to discuss what's ahead. We've distilled the insights and wisdom discussed into three key takeaways that retail leaders should consider if they hope to successfully navigate the choppy waters of Australian retail in FY23 and FY24.
Product innovation is paramount
As customer spending tightens and supply chain issues continue, the need to deliver real value to customers becomes increasingly critical if brands are going to retain customers. Retail leaders are investing in product innovation to ensure that their products and services continue to generate a similar level of value despite changing customer circumstances.
At Cashrewards, we're seeing three primary customer groups this is especially important for - the growing Gen Z market, mortgaged millennials with young families and income-constrained retired Australians. Our new CEO Anthony Seymour-Walsh said at Retail Leaders Forum 2023 that "...for brands looking to navigate these new retail landscapes successfully, there is a real need to innovate to meet these customer groups changing definitions of value."
Innovation towards customer value doesn't just happen at a product level. It also occurs at a partnership level. When 60% of our customers plan to increase their spending with us during these uncertain economic times, it's easy to see why partnering with Cashrewards could be another layer of icing on the cake*.
Protecting customer data without sacrificing personalisation
The latest Australia Post data reported that almost 20% of total retail sales in 2022 were online*, with the 2023 Inside Australia Online Shopping Report predicting this likely to increase over the next decade - brands from across the retail industry are considering how best to create seamless customer experiences that effortlessly cross between in-store and online*. With customer data constantly in the public conversation, it's no surprise that it presents a serious challenge to retailers looking to understand customers while keeping their details secure. As our CEO, Anthony Seymour-Walsh, eloquently put it, "We need to ensure we approach omnichannel in a way that protects customer data without sacrificing the benefits of personalisation".
As online retail expands, considering the entire customer journey rather than building channel strategies in isolation will become more critical than ever - mainly when customer loyalty is at stake. As retailers continue to make headway in this space, Cashrewards plays a unique role in helping brands promote engagement across a merchant's entire buying journey and helping them to understand customer behaviour better as the online and physical stores become increasingly intertwined.
Finding and retaining the right people
One of the biggest challenges the pandemic had on retail was the pressure and stress it put on retail workers. Labour shortages and increasing levels of customer aggression are placing immense pressure on brands that aspire to deliver an excellent customer experience.
Now is the time for these brands to re-establish culture and build employee loyalty. By revisiting employee value propositions and co-creating safe working practices with employees, brands can attract and retain employees that not only enjoy working but have a healthy motivation to serve customers.
Navigate what's next by partnering with Cashrewards
Uncertainty is always certain. That's why it helps to partner with brands that want what's best for you and, more importantly, your customers.
As retailers look to tackle the challenging times ahead, we understand the importance of investing in customer retention and achieving loyalty objectives. We're proud to connect our high-value members with some of Australia's leading retailers.
We share our loyal members with you by driving them directly to your brand, where they can enjoy rewards and cashback from us.
Build loyalty for long-term growth with Cashrewards.
Source Data:
- Data from Cashrewards Cost of Living Survey research & results July 2022
- Australia Post 2022 Inside Australian Online Shopping - eCommerce Industry Report
- Australia Post 2023 Inside Australian Online Shopping - eCommerce Industry Report