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.

Join the newsletter!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.
Show Comments

Blog Posts

The purpose of purpose

Everyone knows the 4 P’s of marketing: Price, product, promotion and place. There is now a fifth ‘P’ in the marketing mix.

What does it take to be an innovation leader?

To thrive in an increasingly complex and unpredictable new world, organisations will need to innovate, and leaders will require the necessary skills to do so. Here,

Evette Cordy

Co-founder, Agents of Spring

3 marketing mistakes to overcome when courting prospective customers

Marketing that urges respondents to ‘buy now’ is a little like asking someone to marry you on your first date. At any time, only 3 per cent of the market is looking for what you’re selling, so the chances of your date randomly being ‘The One’ is pretty slim.

Sabri Suby

Founder, King Kong

We can't overlook mobile. Each passing day people are on their phones more and more

This Is My South Bay

What the 5G revolution will do to mobile marketing

Read more

An article largely re-purposed from things other people have said 5+ years ago – what's more, they said it better.

hogwash

The purpose of purpose - Brand science - CMO Australia

Read more

talking about the 4 p's:https://www.tripleclicks.co...

kigoma divin

The purpose of purpose - Brand science - CMO Australia

Read more

Interesting blog, good information is provided regarding Design Thinking For Business Strategy. Was very useful, thanks for sharing the b...

Tanya Sharma

Is design thinking the answer for the next generation of marketing?

Read more

Hi all,Good Post! Thank you so much for sharing this pretty post, it was so good to read and useful to improve my knowledge as updated on...

Jules john

To DMP or not to DMP? - Marketing automation - CMO Australia

Read more

Latest Podcast

More podcasts

Sign in