How Australian retailers plan to win shoppers in 2025

• 47% of retailers are using loyalty programs to lock in customer loyalty
• 43% of retailers are embracing BNPL to attract cash-strapped buyers
• 100% of medium-sized retailers are deploying loyalty, discounting or delivery offers to remain competitive
  

Australian retailers are doubling down on customer loyalty perks and online shopping tools such as flexible payments to keep shoppers spending as the cost-of-living crunch tightens its grip.

A new survey commissioned by CouriersPlease – Australia’s fastest-growing franchised courier and parcel delivery service, and a proud courier partner to over half of Australia’s major retail brands – shows almost half of the nation’s retailers (47%) are now leveraging loyalty programs to secure repeat purchases. Meanwhile four out of 10 (43%) are embracing Buy Now Pay Later (BNPL) to attract business from financially stretched shoppers.

The survey, which polled 203 retailers across Australia, comes as economic pressures drive Australians to rethink their spending habits. According to CommBank’s Cost of Living Insights Report, 86 per cent of households are now actively monitoring their finances, with more than half cutting back on non-essential purchases.[1]

The CouriersPlease survey results show retailers are favouring largely online strategies that provide value and flexibility, with large businesses (more than 200 employees) particularly embracing loyalty programs, at 65 per cent – more than double the rate of micro businesses (28%). Meanwhile, almost half (49%) of medium-sized businesses (51-200 employees) are doubling down on BNPL.

Richard Thame, CEO at CouriersPlease – winner of the 2024 Retail Innovators Awards (Franchise Excellence) – says the results reflect the resilience of Australian retailers as they adapt to meet consumer needs.

Beyond loyalty: Retailers embrace convenience and personalisation

Following loyalty programs and BNPL, the survey reveals frequent sales (31%) and next-day or same-day delivery (30%) as key tactics being used to boost revenue. Next-day same-city metropolitan deliveries      have seen growing demand from CouriersPlease’s own retailer customers.

Artificial intelligence also ranks highly, with a quarter of retailers (24%) using AI to enhance customer service and streamline operations. Omnichannel retailing (22%) and customer gifting (21%) round out the list of preferred tools, while increased customer outreach through newsletters (17%) remains the least adopted strategy.

Size matters: Small, medium and large retailers take different paths to boost sales<

From micro businesses to large enterprises, the survey highlights significant differences in how retailers approach their sales strategies.

Medium-sized retailers lead the way, with 100 per cent adopting at least one tool to boost loyalty or drive sales. Micro businesses face unique challenges, with 27 per cent saying they don’t use any tools to increase revenue, likely due to limited budgets and resources.

While 20 per cent of retailers are offering more delivery choices, this increases to 32 per cent of medium-sized and large retailers. More than a third (35%) of the latter group are also engaging in omnichannel retailing, compared with just 22 per cent of small and 12 per cent of micro retailers.

Queensland retailers lead in loyalty, while WA retailers lag in retail innovation

Queensland retailers dominate the loyalty program game, with 53 per cent prioritising customer rewards, the highest rate nationwide. BNPL follows closely, with half of Queensland businesses (50%) offering flexible payments to attract budget shoppers.

In contrast, West Australian retailers lag, with just 18 per cent admitting they use none of the surveyed strategies, even though 36 per cent using loyalty programs and 41 per cent using BNPL.

South Australian retailers take the lead in using frequent sales to drive revenue at 47 per cent, while NSW and Victoria take a balanced approach, blending loyalty programs and BNPL with next-day delivery (32% in NSW) to meet shopper demand for speed.

When asked if these tactics were working, the survey reveals mixed success with 43 per cent of all retailers say they had seen greater customer loyalty, while 29 per cent reported increased sales in the past year. However, 22 per cent admitted their strategies had not delivered results.

Survey results below

Q1. As online shopping competition increases and consumer spending slows amid cost-of-living pressures, what tactics are you using to increase revenue and customer loyalty?

Q2. Are these strategies working for you? 

ENDS

About CouriersPlease

CouriersPlease is Australia’s fastest growing franchised courier and parcel delivery service, providing shipping solutions for E-Commerce retailers and traders across the nation. Celebrating 40 years of success in 2023, CouriersPlease continues to experience exponential year-on-year growth and is the trusted courier partner for Australia’s leading retail brands through its independent Franchise Partners and network affiliates. CouriersPlease is a multi-award-winning courier service, receiving a 5 Star rating on the FRANData Franchise Rating Scale and winning the NORA (National Online Retailers Association) Solution Partners Best Carrier Award in 2023. With 800+ active franchise territories and 400 support staff across 18 depot locations, CouriersPlease is committed to upholding its company values of Safety, Trust, Total Customer, One Team, Top Execution and Transformation. Visit couriersplease.com.au

[1] Spending on essentials slows as Aussies under 40 grapple with cost-of-living

[2] How much, and when the RBA will cut interest rates in 2025