Social media-related strategies are the top lever Australian retail entrepreneurs are employing to attract and retain customers, according to new data from Shopify.
These strategies emerge as the current economic climate and its impact on consumer spending remain top-of-mind, with local retail business owners the second most concerned globally about consumer spending levels (77%) and the most concerned about interest rates (66%).
When it comes to Black Friday/Cyber Monday and the holiday season, one in three (33%) Australian retail entrepreneurs say they are optimistic about the upcoming peak sales season compared to 35% who are less optimistic. Toys & Games merchants were found to have the most positive holiday outlook (42% optimistic) compared to other categories and are equal first when it comes to business preparedness (20% prepared) alongside Food and Beverage business owners.
The data also highlights the resilience of Australian businesses and their drive to adapt and innovate to meet the needs of today’s consumers. Australian retailers are focusing on several key strategies for their peak season plans including expanding into new product areas (31%), improving ROI on marketing spend (30%), reducing operating cost (27%) and expanding into new sales channels (22%).
When it comes to attracting and retaining customers, social media-related strategies feature prominently with close to three-quarters (70%) of retail business owners saying they will prioritise social media engagement for customer retention, followed by providing exclusive offers and promotions (42%) and enhancing customer service (38%).
Organic social media content (47%) and paid advertisements on social media (32%) ranked as the top two strategies for attracting new customers, with a substantial 72% of respondents citing strategies related to social media, affiliate marketing and influencer partnerships overall.
Almost two-thirds (63%) of retail business owners said they will be leveraging social media platforms for direct sales.
Shopify Asia Pacific managing director, Shaun Broughton said, “As Australian entrepreneurs navigate the current economic climate ahead of the holiday season, it’s crucial that they not only deepen their engagement on social media — where their customers spend significant time — but also remain agile in responding to growing price sensitivities.
“Investing in technologies like AI that drive greater efficiencies while reducing costs, has also emerged as a valuable strategy for improving business readiness. Black Friday/Cyber Monday and the broader holiday season present a valuable opportunity for businesses to explore new initiatives and strategies that can maximise reach and help them stand out.”