More than half (55%) of Australian consumers will jump ship to another brand if they are offered a discount, according to a recent ‘Why We Buy’ report from digital marketing platform, Criteo.
“Australians are only loyal when they are receiving a genuinely beneficial offer,” Criteo ANZ commercial director, Colin Barnard told Retailbiz.
“A great example of this are Gen Z and Millennials, who make up the nation’s biggest group of travellers. Despite their love of traveling, Criteo data shows that only 29% of them are part of a travel loyalty program.”
Barnard also said young people are becoming more likely to purchase from brands whose values and processes fit in with their personal beliefs.
“It is important that retailers appeal to Gen Z and Millennials through personalisation to ensure that their brand is in alignment with the personal values of the targeted consumer. Digital marketing and AI platforms help to ensure messages are reaching the right audience and delivering a more fulfilling customer experience.”
So why do brands often struggle to engage with Millennials?
“Today’s young people have grown up in an environment saturated by marketers pushing their agenda on them. Have you ever been scrolling through your feed and notice how good you are at ignoring or skipping ads? Today’s consumer has evolved to almost become immune to marketing that doesn’t offer anything worthwhile to them and having grown up in the digital age, the younger generation of today are often the hardest to engage.
“Retailers must understand that they need to offer something worthwhile to this audience to stand out from the crowd. Their attention spans are getting shorter and retailers are failing to keep them engaged with meaningful offers and experiences.”
Criteo’s ‘Why We Buy’ research shows that 55% of respondents switch off when they see ads of products they’re not interested in. In contrast, 47% said they will buy from a brand with an easy to use website and 37% said they would purchase from a brand that aligns with their values.
Personalised, beneficial and easy to use customer experiences is key to customer engagement, according to Barnard. “While Australians love a discount, this is not the only way for retailers to grasp the attention of the consumer. Matching consumer expectations with simple operations and personalised content that inspires shoppers with the right deal at the right time is key. This is where artificial intelligence, data analytics and machine learning come in.”