Online shopping has firmly established its place in the ANZ retail landscape, with 83% of Australian online shoppers and 77% of New Zealand online shoppers shopping online every month, according to data released by IAB Australia and Pureprofile.
Value seeking is top of mind, with an increase in the number of shoppers prioritising lower prices and discounts and almost two-thirds (62%) switching products and brands to find cheaper alternatives.
According to the report, consumers are using an increasing range of price and product discovery options to find the best value and range of offerings. While search engines remain the most used method, 38% are using price comparison sites and services and 20% are using major shopping events to look for discounts as well as for product discovery.
Convenience remains the number one reason for purchasing online (68%), with time poor 18-49s prepared to pay more for convenience. However, shopper loyalty and rewards programs were identified as being increasingly important with 92% of online shoppers enrolled in at least one such program and 95% of online shoppers willing to share some data with retailers in return for benefits such as discounts, coupons, free delivery, rewards points and cashback.
More than 80% of online shoppers understand that their data is used for targeting advertising, marketing and personalisation, however, 71% of online shoppers are increasingly concerned with how retailers use their shopper data (up from 59% in 2023).
IAB Australia CEO, Gai Le Roy said, “The increased importance of loyalty programs for shoppers and retailers is underpinned by trust, transparency and a clearly understood value exchange. It is critical that retail businesses ensure they are providing clear information about their use of shopper’s personal information, particularly with new privacy regulations in Australia imminent.”
Pureprofile CEO, Martin Filz added, “In a quest for savings, consumers are prioritising the best deals and frequently switching brands to secure better price. While budgets are tighter, retailers still have a great opportunity to capture attention with most consumers still engaging with some form of retailer marketing.”