Australian retailers not doing enough online engagement with customers: report

Photo courtesy of Anna Ulanova on Flickr

Photo courtesy of Anna Ulanova on Flickr

Australian retailers are at risk of losing customers to overseas online competitors if they don’t start engaging customers online more, a report from the University of Sydney said.

The Australian Digital Commerce report, conducted by the University of Sydney’s Business School in conjunction with consulting firm Capgemini Australia shows almost 40% of Aussie retailers are failing to fully engage with customers online despite the fact that online retail sales have soared to $15.25 billion in Australian recently.

The report goes on to say 38% of all Australian retailers are classified as ‘laggards’ who show poor implementation of digital commerce execution and engagement.

Only 26% of Australian retailers fit into the ‘high achiever’ category alongside international market leaders. This means they displayed excellence in both online execution and engagement.

The report defines digital execution as the provision of information and facilities to purchase online while digital engagement is defined as interaction with customers across social media, forums and a retailer’s own digital spaces.

“We found that among Australian retailers, the relational dimension (building of lasting relationships with customers for repeat purchases) is by far the least developed,” said the report’s authors.

“This was also where the largest gap with international market leaders occurred.”

Brian Walker, chief executive and founder of the Retail Doctor Group, said Australian retailers have been slow to take up digital commerce, but this is changing.

“Every retailer in the county has a website now, but in many cases they are static and not used for trading,” said Walker. “But that is changing at a rapid rate.”

Walker said while digital commerce only accounts for 6-8% of the total retail transactions in Australia, some sectors are experiencing growth above 15%.

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