Brick-and-mortar retail shops are still bringing in the bulk of revenue for Australian retailers, despite the rise of online retail the world over.
According to UXC Eclipse, Australian retailers have the opportunity to invest in point-of-sale technology and clienteling software to drive lasting relationships with customers.
A recent study by Citigroup reveals the online sales of Australia’s 10 largest publicly-listed retailers represent an average of just 5.9% of total sales. This is compared to an average global online retail sales penetration of 11%, while some international retailers achieve more than 20% of total revenue from online sales. Donna Taylor, solutions delivery manager, UXC Eclipse, says that while most Australian retailers may not have the online market share some global brands enjoy, many have comparatively large physical retail footprints.
This makes it more convenient for Australian consumers to shop in physical stores, and easier for retailers to stock more items, Taylor says.
“Australian retailers still have a strong physical presence, which is backed up by some prime real estate space,” she says.
“These physical stores get a lot of foot traffic, so it’s important to make the most of the physical customer interaction,” Taylor explains.
“Online retailers use data and engagement software to build a relationship with customers. Physical retailers can do the same thing with clienteling software,” she says. Taylor says that traditionally, clienteling has been a sales technique based on forming a personal relationship with customers, based on their habits and preferences.
“Today, clienteling software gives retailers the ability to establish long-term relationships with customers by using data about their behaviour and purchase history,” she explains.
“This capability, which is informed by physical infrastructure such as POS technology, mobile engagement, and customer relationship management systems, helps retailers add a personal touch to transactions with customers, and offers the potential to improve revenue,” says Taylor.