Australian retailers are doubling down on customer loyalty perks and online shopping tools such as flexible payments to keep shoppers spending as the cost-of-living crunch tightens its grip.
A new survey commissioned by courier and parcel delivery service CouriersPlease shows almost half of the nation’s retailers (47%) are now leveraging loyalty programs to secure repeat purchases. Meanwhile four out of 10 (43%) are embracing Buy Now Pay Later (BNPL) to attract business from financially stretched shoppers.
The survey, which polled 203 retailers across Australia, comes as economic pressures drive Australians to rethink their spending habits. According to CommBank’s Cost of Living Insights Report, 86% of households are now actively monitoring their finances, with more than half cutting back on non-essential purchases.¹
The CouriersPlease survey results show retailers are favouring largely online strategies that provide value and flexibility, with large businesses (more than 200 employees) particularly embracing loyalty programs, at 65% – more than double the rate of micro businesses (28%). Meanwhile, almost half (49%) of medium-sized businesses (51-200 employees) are doubling down on BNPL.
Richard Thame, CEO at CouriersPlease, says the results reflect the resilience of Australian retailers as they adapt to meet consumer needs.
“Loyalty programs and BNPL are not just nice-to-haves, they are essential for engaging value-driven shoppers in today’s economic climate. Retailers are pivoting quickly to deliver the flexibility and convenience consumers demand while positioning themselves for long-term growth,” he says.
“As predicted interest rate cuts start to ease some financial pressure this year, the impact will likely be gradual, so it is likely we’ll see retailers leaning on tools such as these to engage value-conscious shoppers. Retailers that stay agile and innovative will be the ones to win in this changing landscape.”
Following loyalty programs and BNPL, the survey reveals frequent sales (31%) and next-day or same-day delivery (30%) as key tactics being used to boost revenue. Artificial intelligence also ranks highly, with a quarter of retailers (24%) using AI to enhance customer service and streamline operations. Omnichannel retailing (22%) and customer gifting (21%) round out the list of preferred tools, while increased customer outreach through newsletters (17%) remains the least adopted strategy.
When asked if these tactics were working, the survey reveals mixed success with 43% of all retailers say they had seen greater customer loyalty, while 29% reported increased sales in the past year. However, 22% admitted their strategies had not delivered results.
“These results underscore the importance of aligning strategies with shopper priorities,” says Mr Thames. “Retailers leveraging multiple tools, particularly those focused on value and convenience, are seeing the strongest gains in loyalty and sales.”