Understanding your target demographic: Key insights from Australia Post’s eCommerce Industry Report 2024
by Cale Maxwell, CEO
In today's hyper-competitive market, it's crucial to focus on what your own audience values most rather than blindly following competitors (see our article on Tech FOMO for more on this topic). With financial constraints tighter than ever, understanding and innovating around your audience's values is key. Australia Post’s eCommerce Industry Report 2024 offers valuable insights into consumer behaviours and trends that can help businesses align their strategies with what really matters to their customers.
The importance of understanding consumer values
What the report can help us understand is the importance of knowing and catering to the values of different consumer groups. For instance, sustainability has become a significant factor for many shoppers, particularly among younger generations. According to the report, 93% of Gen Z shoppers prioritise sustainability and ethical practices when making purchasing decisions. This means that businesses looking to attract and retain these customers must demonstrate their commitment to environmental and social responsibility.
Innovating around consumer expectations
Innovation in response to consumer values isn’t just about having the right products; it’s about creating an overall shopping experience that aligns with those values. The report highlights several trends that businesses can leverage:
Seamless returns policies: Nearly 76% of online shoppers read a website’s return policy before making a purchase. A hassle-free return process can significantly enhance customer satisfaction and loyalty. For example, homewares retailer Adairs has successfully implemented a 90-day returns policy for its loyalty program members, making the customer experience as flexible and pleasant as possible.
Sustainability and transparency: Consumers are increasingly wary of greenwashing, where companies falsely claim or exaggerate their environmental efforts. Brands like ALÉMAIS are setting a benchmark by being transparent about their supply chains and sustainability practices. This builds trust and loyalty among consumers who are keen to make responsible choices.
Leveraging omnichannel strategies: The report underscores the importance of an omnichannel presence, noting that 60% of businesses found it improved customer engagement. Pop-up shops and market stalls offer a cost-effective way to maintain a physical presence and directly engage with customers. Rikki Gilbey’s WAW Handplanes started at local markets and has now expanded globally, showing the power of direct customer interaction in building a brand.
Embracing recommerce: The rise of recommerce, or the resale of secondhand items, is another trend highlighted in the report. Programs like Birdsnest’s Rehatched platform not only support sustainability but also offer customers affordable alternatives. This approach caters to the growing market for secondhand goods, valued at over $60 billion in Australia.
Personalising customer experiences with AI: Artificial Intelligence (AI) is revolutionising eCommerce by enabling personalised shopping experiences and predictive analytics. The report notes that AI can automate tasks, streamline order processing, and provide valuable insights into consumer behaviour. Retailers can use AI to tailor offers based on customer preferences, enhancing online and in-store experiences.
At LEVO, we embed research at the core of our strategic design process. Whether through our own team conducting interviews, facilitating workshops, analysing data, or undertaking a comprehensive consumer market scan in partnership with our sister agencies Hall and Partners or Perceptive, research helps us prioritise your capital where it will generate the greatest value for you and your customers. Reports like the Australia Post eCommerce Industry Report 2024 provide a great start in understanding the macro trends across our commerce landscape. By focusing on these insights, we ensure your investments yield the best returns and align with what your customers truly value.