Australian retailers urged to adopt new strategies amidst crisis

Amid the ongoing cost of living crisis and with the economy verging on recession, Australian retailers are being urged to take bolder steps to attract customers. This call to action comes from Pratik Doshi, Chief Executive of Convincely, a company known for its inventive use of video game technology to boost online sales by improving customer interactions.

Speaking on the current economic climate, Doshi noted, "Because there are fewer customers in the market right now, businesses need to work harder to engage them." He emphasised the importance of connecting consumers, who are increasingly time-poor, with the right products as swiftly as possible. "In this climate, it’s all about connecting people with the right products faster than ever before," he added.

Retail sales figures from June underscore the challenges facing the sector. They show a 0.5% increase in month-on-month seasonally adjusted terms, a slight drop from May’s growth of 0.6%. Year-to-date, retail turnover has remained flat, with consumers cutting back on discretionary spending.

Doshi shared five strategic tips for businesses looking to improve customer engagement:

• Remove choice paralysis: Doshi advises retailers to identify their unique selling points and highlight the key benefits of their products. This approach removes obstacles that can hinder a purchase decision.
• Avoid discounts: Contrary to popular belief, Doshi warns that frequent sales or price reductions can devalue a retailer’s goods in the long run.
• Monitor Google ad spend: With the cost-per-click increasing by roughly 20% year-on-year, Doshi recommends that businesses find effective ways to navigate these escalating costs and stand out in a crowded market.
• Hyper-personalise the experience: According to Doshi, it's crucial for businesses to go beyond merely adopting advanced technology. They must also deliver engaging online experiences that resonate with time-strapped consumers.
• Ditch the hard sell: Doshi believes that customers are more likely to convert when they feel they are on a journey of discovery rather than being subjected to a hard sell.

Recent data from house.com.au suggests that implementing Convincely’s technology can significantly impact consumer behaviour. Customers utilising this tech were four times more likely to make a purchase, with sales increasing between 150% to 450%.

Convincely, based in Melbourne, also collaborates with organisations like RMIT online and RAC Western Australia. These partnerships have reportedly led to notable improvements in conversion rates, thanks to the interactive online experiences provided by the company.

These insights and strategies underscore the importance of adaptability and innovation for Australian retailers navigating the current economic challenges. By focusing on enhancing customer engagement and leveraging technology, businesses can better position themselves to attract and retain customers in a competitive market.