5 Ways to Attract Customers as Retail Spending Dives
Latest ABS data shows Australian retail businesses are discounting to stimulate discretionary spending but an expert in customer engagement is warning that could actually devalue the brand and bottom line.
Amid the cost of living crisis and an economy tethering on the brink of a recession, Australian businesses need to stand out from the crowd in order to attract customers.
Pratik Doshi, founder and CEO of Convincely, a tech industry disruptor which utilises captivating gaming techniques to enhance the online experience, said because there are fewer customers in the market right now, businesses need to work harder to engage them.
“Consumers are time poor but still want a great service. In this climate it’s all about connecting people with the right products faster than ever before,” he said.
Explaining that the use of captivating technology and adding video game elements to retail websites is helping businesses see a surge in online spending - offering a more engaging and intuitive experience amid the rise in popularity of chatbots and AI.
“We’re bringing the in-store personalised shopping experience to an online platform using knowledge and techniques from the gaming industry to keep customers engaged and educated about a product without feeling burdened,” Mr Doshi said.
Retail sales expanded 0.5% in month-on-month seasonally adjusted terms in June, which was a deterioration from May’s 0.6% increase, however since the start of the year, retail turnover has been flat, as cautious consumers reduce their discretionary spending.
Mr Doshi shares five tips to engage with customers
- Remove choice paralysis: Find the unique selling point and highlight the key benefits of your product - this removes hurdles that are in the way of someone going ahead with the purchase.
- Don’t discount: A lot of retailers believe that sales or reductions will increase profits, on the contrary this devalues your goods in the long run.
- Watch your Google ad spend: Many businesses are dependent on companies like Meta and Google to find customers, but cost per clicks are increasing about 20% on average, year on year, so you need to find a way to play in that environment and set your business apart.
- Hyper-personalise the experience: Businesses need to provide more than great technology behind the scenes, it’s also about delivering time-poor customers an engaging experience online - one that stands out from other brands.
- Forget the hard sell: Customers are more likely to engage when led on a journey of discovery rather than feeling like they are being sold to.
Data from house.com.au shows people who have used the new Convincely experience technology within the website were four times more likely to purchase than other shoppers, with sales spiking between 150% to 450%.
The Melbourne based software company is also working with organisations such as RMIT online and RAC Western Australia which are also seeing growth in conversion rate of sales thanks to the interactive online experience.
