“Shopify’s unified commerce platform captures first-party customer data across sales channels and consolidates it into a single location for proper analysis,” he says.

By accessing detailed insights from shoppers at every stage of their journey, retailers can curate meaningful data about buyers, enhancing the overall customer experience.

Experience counts

In the current macroeconomic climate, customer expectations are higher than ever, which underscores the need for retailers to demonstrate value in new ways. Consumers now prioritise seamless, personalised experiences over price.

“Retailers are tackling ... customer experiences by using first-party data for personalised marketing and bespoke offers,” Broughton says.

One notable example is a toy retailer that offered free gifts for a certain spend. These were automatically added to consumers’ carts through a Shopify app extension, creating a seamless experience and building customer loyalty.

Importance of quality

As consumers become more cautious with their spending, the quality of products has become a significant factor in their purchasing decisions. High-quality goods not only foster loyalty but also drive brand switching, with Shopify’s Australian Retail Report finding that 36 per cent of consumers across the country have switched brands because of better quality products.

Moreover, it shows the offer of high-quality goods keeps over half (51 per cent) of consumers loyal to a brand, more than loyalty points or rewards (45 per cent).

Broughton says the idea of value for money extends beyond the price point alone and incorporates the quality of the product, and even the consumer experience.

“Personalisation needed to drive alternative forms of value based on experience depends on technology and first-party data,” he says.

This unified approach not only enhances personalisation but also streamlines operations, making it easier to meet customer demands.

Broughton says that he advises retailers to invest in digital infrastructure that unifies all data across channels, thus avoiding fragmentation and inefficiencies.

Investing in infrastructure

“Retailers should invest in digital infrastructure that unifies data and provides insights across multiple sales channels and the entire business, from customer profiles to centralised inventory” Broughton says.

A unified data approach ensures a cohesive customer experience by marrying data across all channels, both online and offline.

Croxford says unified data plays a crucial role in creating seamless shopping experiences.

“It’s the foundation for delivering a cohesive shopping experience,” she says.

“When done well, unified data allows customers to shift from store to online and back, seamlessly. From browsing products online, to engaging with a staff member via a video call, or augmented physical product experiences, it’s important that customers can complete their transaction through any channel that suits their situation.”

Retailers are leveraging technology to integrate online and offline customer interactions.

“We’re seeing brands internationally move towards more considered store design to ensure a faster and more convenient experience for customers,” Croxford says.

″⁣There are noteworthy examples that include things like automated collection terminals, after-hours access, and more expedient turnaround times.″⁣

Enhancing the retailer value proposition

Shopify offers a suite of tools designed to help retailers provide a unified view of the customer and a seamless journey across touchpoints.

“Tools that provide a unified view of the customer and underpin a seamless customer journey across every touch point are invaluable,” Broughton says.

One such tool is Shopify POS, which integrates in-store and online data to offer a 360-degree view of each customer.

“Shopify POS gives retailers instant visibility of the customer journey in physical storefronts, consolidating in-store data with online data,” Broughton says.

This integration allows retailers to provide personalised services however customers choose to shop. An example is the “email cart” feature, which enhances the customer experience by allowing customers to complete purchases at home if they are not ready to buy in-store.

Trends in spending habits

Despite economic pressures, there are still opportunities for retailers.

Broughton says that 79 per cent of Australians are cutting down on something to save money, but that 23 per cent “still treat themselves every month or so”.

“This behaviour indicates that consumers are still willing to spend on life’s little luxuries, opening up opportunities for sales among retailers with the right messaging and targeting.”

Please visit Shopify to download The Australian Retail Report 2024.