As a small business owner, managing your debtor management is crucial to maintaining your financial stability and keeping your business afloat.

You may not have realised your debtor management could do with improvement because you’re likely following the same processes your business has always done. But broader challenges, like the current macro environment, potential staff turnover, or your organisation experiencing a period of rapid growth, can have a significant impact on your cash flow and debtor management. With a few checks in place, you can overcome these challenges, free yourself up from unwanted admin, and create time and space to focus on activities that drive greater value for your business. 

With years of experience guiding customers on how to overcome credit risk, these are six top tips to help you manage your debtors more effectively:

Review your process – ensuring it’s not causing late payments and bad cash flow

Your business should have a well-defined debtor management process that’s easy to follow each month. It should guide your steps at every stage, from sending statements, to making calls, to moving customers through a flow that stops credit and escalates to debt collection when they’re well past their due date. 

Every step in your process should be decided in advance, then codified into your debtor management software so it’s easy to follow. You’ll know you have your process right when anytime you do debtor management it feels logical and effective. You’re simply following the next predefined step in the follow-up process for each overdue account, so there’s less pondering about what to do next. If you’ve got a team, then everyone knows their responsibilities and can be held accountable.

Keep an eye on the time required for debtor management – optimise wherever possible

Unless it’s a core part of your role and you have the right tools and training to complete it, debtor management can be difficult for a lot of people. It may feel like you spend too much time managing debtors, or not enough if other priorities keep getting in the way.

Good debtor management is crucial to protecting your cash flow and delivering a good customer experience. With a proper process in place, including a well-timed reminder workflow, it shouldn’t be a burden on your time. It should run fluidly, with your input only needed when bad debts need to be escalated or if disputes are raised.

 Set clear payment terms with your customers

One of the easiest ways to manage your debtors is to set clear payment terms from the beginning. Be specific about when payment is due and any penalties for late payment. Make sure your customers understand your payment terms and agree to them before doing business with you.

Invoice promptly

It’s important to invoice your customers as soon as possible after providing goods or services. Ensure you have the right payment method and bank account details on every invoice. Practicing both actions will help you get paid faster and avoid delayed payments.

Run a late payments reminder workflow

Don’t chase debtors with an ad-hoc system. Having a predetermined workflow takes the guesswork out of the reminder process. Knowing ahead of time at what stage in the cash flow cycle you’ll send invoice reminders to customers is crucial. Timing should be agreed across the entire team, whether that’s CFO, Finance Manager, Credit Controller, Owner/Operator or across other roles. This will ultimately save you time as you’ll know exactly how to escalate a bad debtor as they move through the workflow.

You can set up workflows and invoice reminders manually. But to really improve your process you can use tools to automate the reminders process. From pre-reminders right through to a debtor dashboard, these tools provide a consolidated view of your debtors. Implementing a specialist tool can also deliver better cash flow management. Automated collections tools employ all the best levers to get customers to pay such as including SMS  messages and scheduling phone calls into your reminder workflows.

Don’t extend credit to bad debtors

Pausing a customer’s account might not always be possible. But if you can do so, then pausing the account before a debt becomes overdue is a good idea. You can set this out in your payment terms, so that it’s clear for the customer from the outset.

Just like there are tools for debtor management, there are tools to help you predict the risk of customers, which can drastically limit the amount of bad debt you have on your books. One of the low-cost tools we offer, for example, helps businesses understand which customers are most likely to default in the next 12 months, so they can consider whether they want to start working with, or continue working with, such a business.

By following these tips, you can manage your debtors more effectively and avoid the financial stress that comes with overdue payments. It’s often said but staying on top of your finances really is key to the long-term success of your small business.

By Matt McFedries, Head of CreditorWatch Collect

With many economists predicting a recession on the horizon in 2023, Australia is relying on successful industries to continue their growth to protect our economy from the two consecutive quarters of negative growth that define a recession. SMEs are the lifeblood of the Australian economy making up 98 per cent of businesses^[1], but with their traditionally smaller budgets they generally require finance to enter periods of growth. Now, new research reveals that a quarter (26 per cent) of SMEs won’t take out a loan for business growth if rates hit 7 per cent, which has already been surpassed by a series of major banks. This jumps to 50 per cent of SMEs who will refuse to take out a business loan if rates rise to 10 per cent. In fact, two-thirds of business owners and senior decision-makers (64 per cent) would not obtain a loan at an unfavourable rate, regardless of whether such a decision would stunt their business’s growth.

The findings were derived from an independent survey commissioned by business loan comparison site Small Business Loans Australia seeking to discover whether rate rises will deter Australian businesses from the big four banks: Commonwealth Bank, Westpac, National Australia Bank and ANZ. Respondents were 210 business owners and senior decision-makers across the full SME spectrum: micro (1-10 employees), small (11-50 employees) and medium-sized (51-200 employees), as well as a small percentage of large SMEs (more than 200 employees). The full survey results, including breakdowns across business sizes and states, can be found here: https://smallbusinessloansaustralia.com/sme-big-bank/ 

In 2018-19, 15 per cent of businesses applied for finance, with 31 per cent using the funds for general business growth. Sixty-nine (69) per cent of such businesses borrowed their money from a bank and 33 per cent borrowed from another financial institution.^[2]

Small Business Loans Australia asked respondents to consider any loans their business may require over the next two years and asked them to identify what level of interest rates would turn them off obtaining a loan from a bank. More than a quarter (26 per cent) of respondents reported that an interest rate of 7 per cent would deter them from acquiring a loan, while 14 per cent responded that they would avoid borrowing at an interest rate of 8 per cent. Ten (10) per cent of respondents indicated their limit as 10 per cent, while 24 per cent will cease taking out loans when interest rates reach 10 per cent or higher. Interestingly, almost one in 10 (8 per cent) would continue to borrow funds from the big banks, provided the interest rate remains at 15 per cent or under.

More than a third (36 per cent) of micro-businesses indicated that they would cease borrowing when interest rates reach 7 per cent, while 17 per cent of medium-sized and large businesses noted the same. This compares with just 3 per cent of small businesses that would be deterred from acquiring a loan at an interest rate of 7 per cent or higher.

Small Business Loans Australia found that business respondents across all States, would cease borrowing at an interest rate of 7 per cent. A third of respondents from Queensland (33 per cent) would be deterred from obtaining a bank loan at this rate, followed closely by South Australian and Victorian respondents at 32 per cent and 31 per cent, respectively. Meanwhile, only one in five (20 per cent) of respondents across NSW, Western Australia and the ACT indicated the same.

Would businesses choose between financing and growth?

Small Business Loans Australia asked respondents whether they would still postpone borrowing even if it meant that their business would not grow without it. Almost two-thirds (64 per cent) responded that they would not obtain a loan at an unfavourable rate, regardless of whether such a decision would stunt their business’s growth. Meanwhile, the remaining 36 per cent would continue borrowing to sustain the expansion of their business.  

The survey found that large business are more prepared to continue borrowing at high interest rates to enable their business to grow, with 67 per cent of respondents of large businesses indicating that they would obtain a loan at an unfavourable rate if necessary. On the other hand, micro, small, and medium-sized businesses are less inclined to do the same: more than two-thirds (70 per cent) of micro-businesses contended that they would cease borrowing, while 46 per cent and 39 per cent of small businesses and medium-sized businesses, respectively, noted the same.

Alon Rajic, Founder and Director of Small Business Loans Australia, says: “Australian SMEs are showing promising resilience as interest rates continue to rise.”

“This year could be a period of growth for businesses in many sector, which in many cases will require a business loan. Most SMEs have established a clear cut-off point where interest rates will become too difficult to manage, which is imperative when choosing any loan. However, there is always a variety of differing interest rates available across lenders, and business owners should make sure to shop around and use a comparison service before taking out any new loans.”

The full survey results, including breakdowns across business sizes and States, can be found here.

 People intelligence company, Compono, has today released its inaugural monthly Australian jobs index. The report includes data from almost 40,000 Australian job ads and applications from February 2023.

Report overview:

• 38,645 Australian jobs were posted via Compono’s job posting platform in February, a 15.5% increase from January
• Leisure & sport saw the highest demand for candidates, with four jobs posted for every candidate applying
• The most competitive industry is hospitality & catering, with around 38 applicants to every open role

Industries:

Following leisure & sports, workers are also in high demand in the electronics, legal, travel and tourism, and medical and nursing industries. This is consistent with the demand across January.

Australian jobs index shows which jobs are in highest demand

The most competitive industry for candidates is hospitality and catering, with over 38 applicants for each job posting; a slight increase from January, at around 27 candidates for each posting. 

Raife Watson, Regional Director APAC, Compono, said, “Our inaugural monthly jobs index shows that while it’s still a candidate’s market, businesses should be happy to see an uptick in the number of candidates applying for positions; particularly businesses in the hospitality and catering sector who have been struggling to find for staff for some time.

“The increasing number of applicants in the hospitality and catering sector is possibly due to decreased seasonal demand, combined with the new academic year providing a slight bump in candidate numbers. 

“2023 has shown consistently high demand for candidates in the sports, electronics, tourism, legal, education and medical sectors. For job seekers looking to break into these industries, now has never been a better time.”

Adobe has released new research that shows brands aren’t taking the necessary steps to evolve their data strategies, despite serious near and long-term impacts on their businesses after relying on third-party cookies. The global survey of more than 2,600 marketing and consumer experience leaders (including 656 APAC respondents) also explores the marketing investments and strategies that set industry leaders apart from the competition.  

Across APAC, the majority (79%) of brands still rely heavily on third-party cookies, with over half (56%) of leaders expecting the end of third-party cookies will hurt their businesses. The research shows that ambiguity over cookie deprecation is causing confusion and, in some cases, inaction, with one in three (38%) APAC leaders stating they are not changing their marketing strategy out of a perceived lack of urgency, while others plan to change but are delaying cookieless preparation.  

“Companies that aren’t diversifying their strategies are leaving money on the table today, and hurting their chances of gaining competitive advantages in the future,” said Gabbi Stubbs, APAC Product Marketing and Strategy, Adobe. “While a wholesale change in strategy takes commitment and long-term investment, the benefits are undeniable across all currencies that matter—from customer loyalty and satisfaction to a better bottom line.”

Brands rely heavily on third-party cookies

Although deprecation is on the horizon, 52% of APAC leaders still spend at least half of their marketing budgets on cookie-based activations – and 79% actually plan to increase spending on cookie-dependent activations this year. Most (81%) leaders in APAC still rely heavily on third-party cookies because they feel they’re very effective, while a quarter (23%) of respondents surveyed in Australia believe that third-party cookies aren’t going anywhere.  

The majority (86%) of APAC leaders at cookie-dependent companies say that at least 30% of their total potential market is in environments where third-party cookies don’t work, such as social media platforms and on Apple devices, and 59% say that half or more of their potential market is in cookieless environments. Beyond the immediate consequences of being unable to reach 30-50% of potential customers, the impacts of this mistake will only compound with every passing quarter as the cookieless frontier continues to expand.

An overdependence on third-party cookies is about to backfire on brands

Many APAC leaders expect the end of third-party cookies will hurt their businesses, in some cases profoundly: 34% said it would “devastate” their businesses, 21% anticipate significant harm, and 25% predict a moderate negative impact. In some countries, the numbers are more concerning; 54% of leaders surveyed in Australia expect either devastating (31%) or significant (23%) impacts from cookie deprecation. Many heavy third-party cookie users believe they don’t have a choice, with over half (60%) of cookie-using leaders saying they view cookies as a “necessary evil,” even though many realise that continued overreliance is a losing strategy for the long-term. One in three respondents (37%) say they can’t get the resources to evolve their strategies, a number that rises to over half of leaders (56%) in Australia. 

While many companies are now on the path to abandoning cookies, a third (38%) are not. Some say they’re not changing out of a perceived lack of urgency. Others plan to change but are delaying preparations. 

Customer data platforms (CDPs) are helping brands prepare for a cookieless future, and a cookieless now  

 The research found that over half (54%) of APAC leaders who use CDPs say they’ve already gained more direct relationships with customers, a rise in customer loyalty (42%), and an increase in the number and value of completed transactions (41%). CDPs also improve internal workflows, with 46% saying it enabled better and faster work across marketing and IT and more efficient ROI production (35%). Adobe Real-Time Customer Data Platform (Real-Time CDP) now delivers billions of predictive insights a year based on real-time customer profiles. These insights empower teams to engage customers who are likely to buy – or who may be considering switching to a competitor. The platform has become the customer experience engine of choice for leading brands across numerous industries, including Coles, SBS and Suncorp. 

Also read SBA’s article on the business impact of 3rd Party cookie changes.

Synology has announced the release of two 4-bay Synology DiskStations, the DS423+ and DS423, the latest in its lineup of all-in-one storage solutions for home offices and small businesses.Powered by the versatile Synology DiskStation Manager (DSM) operating system, both storage servers offer comprehensive solutions to protect and manage business data, facilitate collaboration on documents, provide remote file access, and serve as the core of an IP camera-based surveillance system, all within a compact desktop format.

DS423+: Sync and back up endpoint data to a centralized platform

With a maximum raw storage capacity of 72 terabytes, the DS423+ is ideal for teams of professionals, small businesses looking to step into the world of centralized storage, or to serve as an edge node in distributed deployments.

“The DS423+ offers exceptional value to users with limited storage requirements,” said Anya Lin, Product Manager at Synology Inc. “It boasts 21% faster photo indexing over its predecessor, among other performance improvements, and continues to offer the comprehensive and robust features that our customers have come to rely on.”

The DS423+ delivers intuitive file management and sharing with Synology Drive, which combines cross-platform file access with the privacy offered by on-premises storage. For teams working remotely and businesses operating across multiple locations, site-to-site file syncing is available to mirror content between Synology devices.

In addition, existing IT infrastructure can be protected against data loss due to system failure or cybersecurity threats using Synology Active Backup Suite. Active Backup allows IT infrastructure, such as Windows and Linux systems, Hyper-V/VMware VMs, and Microsoft 365/Google Workspace accounts, to be safely backed up onto the DS423+ and quickly restored when needed.

Businesses can also set up and manage up to 40 cameras on the DS423+ with Surveillance Station, which makes it easy to encrypt, backup, and archive recordings, as well as record footage simultaneously to the cloud using optional C2 Surveillance from Synology. Surveillance Station is highly scalable and suitable for deployments of all sizes — from small business deployments with a few cameras to large-scale deployments with thousands of cameras between hundreds of locations.

DS423: Access Synology solutions to store, back up, and view data

With a maximum storage capacity of 72 terabytes, the DS423’s size and capacity makes it perfect for remote employees or small businesses looking to consolidate data on a centralized platform and gain access to feature-rich Synology applications.

“As a compact data storage solution, DS423 comes with everything users need,” said Michael Wang, Product Manager at Synology Inc. “From backing up data, managing files and other media, to setting up a surveillance system to protect premises, the DS423 comes with a host of power-packed features in a small unit.”

The DS423 comes with Synology Drive for reliable file management, sharing, and syncing via PCs, Macs, and mobile devices, allowing users to access their data anywhere. In addition, businesses with remote employees or those operating across multiple locations can leverage Synology Drive ShareSync to sync data between multiple Synology devices scattered across different locations, keeping everyone on the team aligned.

Businesses can connect up to 30 cameras to Surveillance Station, a powerful surveillance system that allows users to back up, encrypt, and archive footage from multiple servers via a built-in central management system. Footage can also simultaneously be stored to the cloud with Synology C2 Surveillance. Surveillance Station comes with support for ONVIF devices and over 8,300 validated IP cameras to make deployment as easy as possible.

Employers reap $40 in savings for every dollar invested in workplace adjustments to support staff with disability, according to a research review launched by the Australian Government’s disability employment hub, JobAccess, today.

Disability-inclusive businesses grow profits more than four times faster than their peers¹. Employees with disability stay on the job longer on average than those without disability. And staff with disability are safer in the workplace and have 34 per cent fewer accidents than other employees.

These statistics are part of a research review titled “The compelling case for disability employment in Australia – the unrivalled benefits of an underutilised labour market”, which was tabled by JobAccess General Manager Daniel Valiente-Riedl today.

“Despite a strong business case, there is an employment bias against people with disability. Managers and employers are often concerned that productivity benefits might not be enough to justify costs to the business. 

“But Australian and global research tell a completely different story,” Mr Valiente-Riedl said.

“Discrimination remains very real. Some employers aren’t hiring staff with disability because of attitudes and stereotypes that are simply incorrect.”

Australia’s disability employment gap of over 30% – largely unchanged since 2003 – puts it behind OECD economies, including Italy, Finland, France and Sweden².

The estimated economic benefits of employing people with disability would add over $50 billion to the GDP by 2050 if Australia moved up into the top eight OECD countries for the employment of staff with disability³.

Low unemployment rates and a fall in skilled migration have characterised the Australian labour market over the past 24 months. The most recent data says that one in three businesses face difficulty finding suitable staff, with large and medium-sized organisations more likely to be impacted⁴.

Employers are turning to untapped sections of the labour market, including people with disability, to bridge the skills gap. “This is not surprising given the positive impact disability engagement has on business growth and profitability,” adds Valiente-Riedl.

The research review released by JobAccess looks at myths and misconceptions about disability employment and examines the benefits of businesses that embrace disability inclusion.

Common misconceptions include that co-workers are not comfortable working with people with disability and that people with disability have trouble getting along with others on the job.

“This is simply not borne out by the research, and the evidence of improved loyalty and lower staff turnover shatters this myth.

“In today’s tight labour market, there is a competitive advantage in hiring people with disability. It also positively impacts workplace culture with diversity and inclusivity and builds a workforce that represents the diversity of communities in which businesses operate.”

JobAccess is the Australian Government’s disability employment hub. One of its many services is to provide advice and support to employers who want to tap into the wide talent pool of people with disability.

As part of this, expert allied health professionals advise on workplace adjustments which can increase productivity, accessibility and inclusion in a workplace. 

Awareness of workplace adjustments is low both among employers and people with disability, according to the findings. There is also a myth that workplace adjustments are difficult to organise and often expensive.

“Our internal research shows that half of the modifications cost less than $1,000 and that many adjustments can be made at no cost at all, like providing flexible work hours or locations,” Valiente-Riedl says.

“They are a powerful tool to build inclusive and accessible workplaces. Not all people with disability require adjustments to do their jobs, and in most cases, implementing such adjustments are often low-cost or incur no cost.”

Employers can access financial assistance to implement workplace adjustments to support employees with disability through JobAccess and the Australian Government’s Employment Assistance Fund (EAF).

Adopting long-term, sustainable measures to attract, employ and retain people with disability is vital to mitigate adverse talent risks. JobAccess’ employer engagement program – National Disability Recruitment Coordinator (NDRC) – partners with larger employers across Australia to improve their disability confidence through free, tailored 12-month partnerships.

Since 2010, the NDRC has worked with over 380 organisations, including public, private and not-for-profit entities, across a prolific breadth of industries.

“Instead of being guided by negative attitudes and perceptions, employers need to start seeing the opportunities that can come by employing people with disability. Increasing disability confidence and embedding inclusive employment practices is the starting point to build strong teams,” concludes Mr Valiente-Riedl.

In the current tight labour market, a low 3.5 per cent unemployment rate^[1] and high employee mobility – with data showing three in five Australians could switch jobs this year^[2] – many businesses expect to face challenges in attracting and retaining staff. New research from a leading travel management company has found clues to the perks Australians want that might retain talented staff – if the employer can afford it. The three entitlements that attracted the most interest by Australians were additional paid leave, a four-day working week, and international travel for work.

The findings were derived from a survey of an independent panel of 1,001 Australians, commissioned by Corporate Traveller, Australia’s leading travel management company for SMEs and a division of the Flight Centre Travel Group.

The survey respondents were presented with a list of 11 perks and were asked to select the top three they would most want their company to offer them this year. The entitlements appealed to the majority (86 per cent).

Corporate Traveller presented these 11 entitlements to 1,001 Australian respondents:

1. Travel, including international travel
2. ‘Working holidays,’ whereby I am permitted to work remotely at a holiday location
3. Gym membership
4. Additional paid leave days, such as birthday leave
5. Covering some or all of the costs of my work commute, including car allowance
6. A permanent hybrid or remote working arrangement
7. Company shares
8. Early finishes on a Friday or a four-day workweek
9. Charity programs whereby employees do volunteer work on paid working days
10. Access to company car
11. Company-paid meals and snacks at work

Employees want more time away from the workplace

It seems that workers are seeking more time away from work. Forty-one (41) per cent want additional paid leave days, 37 per cent would like to finish early on a Friday or work four days a week, and an equal 27 per cent would value travel (including international travel) or have their commuting costs covered.

Tom Walley, the Australian-based Global Managing Director at Corporate Traveller, says: “Our survey results show that Aussies may be seeking a better work-life balance through more leave, shorter weeks, and more travel.”

The four-day work week has gained steam in the last couple of years, with companies across countries such as Canada, the UK, Belgium, and Japan testing its viability. Microsoft in Japan, for instance, reported a 40 per cent increase in productivity, along with more efficient meetings and happier employees, after trialling the four-day work week.^[3] Closer to home, Unilever New Zealand reported increased engagement among employees, improved work-life balance, reduced stress and a 34 per cent drop in absenteeism, following their trial program.^[4]

Tom adds: “It’s encouraging to discover that travel is also highly valued by our survey respondents. Not only are 27 per cent keen to travel for their work, but 21 per cent are also interested in having access to working holiday opportunities in their job.

“Travelling for meetings and events offers numerous opportunities to connect with peers in the industry, make new contacts that are valuable to the business, and sourcing new-business leads. I’m a firm believer that face-to-face communication is essential for creating deeper connections with stakeholders and prospects. The variety that travel provides in an employee’s career also helps keep them motivated and engaged.

“If travel isn’t a key component of the organisation, employers could seek industry events and conferences or training programs – whereby staff can network, seek new business prospects and learn new skills, all of which can contribute to business success – as an effective tactic to retaining travel-hungry employees.”

Employers covering personal and work-related costs are less valued 

The desire for employees to have the cost of their commute covered by their workplace was also a high priority for 27 per cent of Corporate Traveller’s survey respondents.

Research shows that the average Australian spends around $112 per week commuting, equivalent to approximately $4,924 a year, including petrol costs, and while public transport costs can vary, employees can still be thousands of dollars out-of-pocket a year.^[5]

Nearly a quarter (23 per cent) of respondents would like to be offered company-paid meals and snacks at work, while one in five (19 per cent) would love a permanent hybrid or remote working arrangement.

A gym membership (chosen by 17 per cent), access to a company car (16 per cent), company shares (15 per cent), and charity programs allowing employees to do volunteer work on paid working days (six per cent) were less popular entitlements.

Most valued work perks by age groups

• A higher proportion of younger Australians are interested in additional paid leave, with 49 per cent of under-30s and 48 per cent of 31-50-year-olds choosing it as a valued perk
• 30 per cent of over-50s would like additional paid leave
• Travel came out as the second most sought-after perk for under-30s (at 40 per cent)
• 31-50-year-olds preference shorter workdays or work weeks
• This perk was the third top choice for under-30s, chosen by 38 per cent, and the second top choice for over-50s, chosen by 28 per cent
• 22 per cent of over-50s were attracted to having the costs of their work commute covered, a perk that was also identified as the third top choice for 30 per cent of 31-50-year-olds.

Tom adds: “Our survey results offer valuable insight into the benefits that employees desire the most and will be seeking out this year. Businesses could consider offering new perks to remain competitive and attract and retain valuable employees. In particular, conducting similar trials of a four-day work week, exploring travel opportunities, and offering valued leave entitlements could be key to onboarding good talent this year.”

The perks Australians want their company to offer this year

Consumers are expecting more from brands than ever before. Free shipping and discounts are no longer enough to secure customers long term – a brands values, commitment to eco-friendliness and loyalty reward programs are all key factors. The conscious consumer is here to stay, and brands need to ensure they are keeping this top of mind when they are developing marketing strategies.

Brands need values

Consumers are choosing to align with brands that reflect their own values. Nearly two-thirds (65 per cent) of Australians have shared that brand values will be a key purchase motivator in the next six months according to Criteo’s The Rise of Savvy Shoppers Study. Brands that have not clearly defined and actioned a set of values will be left behind.

It is important to be open about what your brand’s values are and share how you are putting them into practice. Create a page on your website that keeps your customers up to date on your mission and impact. Share photos of initiatives on your social channels and integrate brand values into all your messaging through marketing campaigns. This will increase awareness and draw in customers.

The environment is front of mind

Climate change and the environment are key concerns for consumers. It is important to note that over half (55 per cent) of Australian shoppers have revealed that they are searching for eco-friendliness from brands[1]. This is evident when we witness companies, such as The Iconic, introduce ‘Considered’ and ‘Pre-Loved’ shopping filters into their online shop search to allow consumers to source sustainable brands that are having a positive impact on the environment.

Beyond incorporating eco-friendly practices into the everyday running of the business, brands also need to highlight this approach, outcomes and progress towards goals through their marketing efforts. Giving consumers the choice to make more sustainable decisions when buying items or services is also an effective way to promote these practices.

Loyalty must be rewarded

Consumers have so much choice when it comes to making a purchase. They want to invest in brands that invest in them and reward them back – making them feel as though their purchase is more than a transaction. Loyalty programs are driving sales, with 69 per cent of Australians saying this is an important factor when considering a purchase in the next six months[2].  

Brands must make their customers feel listened to. You can do this through sharing relevant products the consumer is likely to purchase and creating personalised discounts on products still in the basket. Utilising a commerce media platform with machine learning or AI tools can help you create this experience for consumers, engaging them at every shoppable moment. If this is not possible on your own, there are a range of partners with expertise, like Criteo, that can manage and optimise your marketing strategies to bring this to life. Marketers have the opportunity to make a customer feel special and this is exactly how you will retain them.

Brands have the chance to build strong, long-term relationships with their customers by strengthening their efforts and communication about brand values, eco-friendliness and loyalty programs. It is important for brands to invest in these three areas and engage with consumers effectively in order to see a growing customer base and a rise in brand advocates into the future.

By Colin Barnard, Managing Director, Criteo, ANZ