Australian retailers failing on digital engagement

Research finds Australian retailers are lagging their international competitors

When it comes to digital commerce, Australian retailers are frequently failing to deliver personalised experiences to engage consumers, according to new research.

The Australian Digital Transformation Lab, a joint venture between Capgemini Australia and the University of Sydney Business School, compared 62 retailers, 52 of them Australian and 10 of them leading international retailers, across 100 sectors.

The researchers classified 38 per cent of the Australian retailers as digital "laggards", with the report arguing they lack "both digital execution and engagement".

Twenty six per cent of the Australian retailers made the "high achievers category".

Figures released by the Australian Bureau of Statistics in February showed 76 per cent of Australia's 15.4 million Internet users shopped online during 2012–13.

"Australian retailers are falling behind international market leaders who have invested for many more years in digital commerce features that support more personalised customer experiences,” Capgemini Australia’s digital transformation lead, Ben Gilchriest, said in a statement.

“Closing the gap between Australian retailers and international market leaders requires strong improvements in omni-channel integration, the strategic use of customer data to drive one-on-one engagement and a greater focus on systematic engagement across social media channels,” said associate professor Kai Riemer from the University of Sydney Business School.

The report found that 33 per cent of the Australian retailers lag their international competitors when it comes to building customer relationships

Retailers in the food, hardware and furniture sectors are the ones most likely to be trailing their leading international counterparts, failing to achieve a balance between omni-channel execution and customer-centric engagement.

"Only if retailers engage with customers consistently across different channels will they be able to successfully grow and harness a loyal customer base to ensure continuing customer satisfaction and profitability,” said Riemer.

“Operationally, this means treating customers as individuals and not as part of an anonymous group, even if this is done in a mass customised way.”

Follow CMO on Twitter: @CMOAustralia, take part in the CMO Australia conversation on LinkedIn: CMO Australia, join us on Facebook: https://www.facebook.com/CMOAustralia, or check us out on Google+: google.com/+CmoAu

Signup to CMO’s email newsletter to receive your weekly dose of targeted content for the modern marketing chief.

Read more: Michael Hill looks to build ecommerce sales with video marketing

Read more: Australians buying more with their phones, new report finds

Join the CMO newsletter!

Error: Please check your email address.
Show Comments

Supporting Association

Blog Posts

Against Net Promoter: A new way of interpreting the customer data deluge

One thing that frustrates marketers is the sloppy use of digital research.

Jason Juma-Ross

lead partner, PwC Digital Intelligence

How to better value your data

As digital marketing techniques matured over the last few years, the momentum to collect and utilise data has rapidly gathered pace.

Mark Cameron

CEO, Working Three

5 essentials for leading digital transformation

While each business will have a unique digital transformation agenda, there are five essentials every CMO can pick up and excel at to ensure a smooth transformation.

Jacki James

strategic planner, Zuni

You have your wish Valentina! We caught up with the MCG to get an update on the trials and what the next steps are for the venue. http://...

nadiacameron

Melbourne Cricket Ground to give away pies during Beacon trial

Read more

You think people are annoyed with marketing messages now? Wait til they start getting them on their pill bottles. That's not "engagement...

Len Diamoond

Marketo CEO: Mass media is dead; embrace engagement marketing

Read more

I'd love to hear an update on how this trial went and any stats that are being released. Have looked around and doesn't appear to be anyt...

Valentina Borbone

Melbourne Cricket Ground to give away pies during Beacon trial

Read more

Thanks

Veri kurtarma

How data is driving the customers of a lifetime for BaubleBar

Read more

I love the article and feel it's right on. Only thing I don't agree with is ..'“If a marketer starts to pigeon-hole themselves as just b...

Scott Sundheim

CMO to CEO: Virgin’s David Scribner talks growth

Read more

Sign in