Australian retailers are doubling down on customer loyalty perks and online shopping tools such as flexible payments to keep shoppers spending as the cost-of-living crunch tightens its grip.
A new survey commissioned by CouriersPlease – Australia’s fastest-growing franchised courier and parcel delivery service, and a proud courier partner to over half of Australia’s major retail brands – shows almost half of the nation’s retailers (47%) are now leveraging loyalty programs to secure repeat purchases. Meanwhile four out of 10 (43%) are embracing Buy Now Pay Later (BNPL) to attract business from financially stretched shoppers.
The survey, which polled 203 retailers across Australia, comes as economic pressures drive Australians to rethink their spending habits. According to CommBank’s Cost of Living Insights Report, 86 per cent of households are now actively monitoring their finances, with more than half cutting back on non-essential purchases.¹
The CouriersPlease survey results show retailers are favouring largely online strategies that provide value and flexibility, with large businesses (more than 200 employees) particularly embracing loyalty programs, at 65 per cent – more than double the rate of micro businesses (28%). Meanwhile, almost half (49%) of medium-sized businesses (51-200 employees) are doubling down on BNPL.
Richard Thame, CEO at CouriersPlease – winner of the 2024 Retail Innovators Awards (Franchise Excellence) – says the results reflect the resilience of Australian retailers as they adapt to meet consumer needs.
“Loyalty programs and BNPL are not just nice-to-haves, they are essential for engaging value-driven shoppers in today’s economic climate. Retailers are pivoting quickly to deliver the flexibility and convenience consumers demand while positioning themselves for long-term growth,” he says.
“As predicted interest rate cuts start to ease some financial pressure this year, the impact will likely be gradual, so it is likely we’ll see retailers leaning on tools such as these to engage value-conscious shoppers.² Retailers that stay agile and innovative will be the ones to win in this changing landscape.”
Beyond loyalty: Retailers embrace convenience and personalisation
Following loyalty programs and BNPL, the survey reveals frequent sales (31%) and next-day or same-day delivery (30%) as key tactics being used to boost revenue. Next-day same-city metropolitan deliveries have seen growing demand from CouriersPlease’s own retailer customers.
Artificial intelligence also ranks highly, with a quarter of retailers (24%) using AI to enhance customer service and streamline operations. Omnichannel retailing (22%) and customer gifting (21%) round out the list of preferred tools, while increased customer outreach through newsletters (17%) remains the least adopted strategy.
Size matters: Small, medium and large retailers take different paths to boost sales
From micro businesses to large enterprises, the survey highlights significant differences in how retailers approach their sales strategies.
Medium-sized retailers lead the way, with 100 per cent adopting at least one tool to boost loyalty or drive sales. Micro businesses face unique challenges, with 27 per cent saying they don’t use any tools to increase revenue, likely due to limited budgets and resources.
While 20 per cent of retailers are offering more delivery choices, this increases to 32 per cent of medium-sized and large retailers. More than a third (35%) of the latter group are also engaging in omnichannel retailing, compared with just 22 per cent of small and 12 per cent of micro retailers.
Queensland retailers lead in loyalty, while WA retailers lag in retail innovation
Queensland retailers dominate the loyalty program game, with 53 per cent prioritising customer rewards, the highest rate nationwide. BNPL follows closely, with half of Queensland businesses (50%) offering flexible payments to attract budget shoppers.
In contrast, West Australian retailers lag, with just 18 per cent admitting they use none of the surveyed strategies, even though 36 per cent using loyalty programs and 41 per cent using BNPL.
South Australian retailers take the lead in using frequent sales to drive revenue at 47 per cent, while NSW and Victoria take a balanced approach, blending loyalty programs and BNPL with next-day delivery (32% in NSW) to meet shopper demand for speed.
When asked if these tactics were working, the survey reveals mixed success with 43 per cent of all retailers say they had seen greater customer loyalty, while 29 per cent reported increased sales in the past year. However, 22 per cent admitted their strategies had not delivered results.
“These results underscore the importance of aligning strategies with shopper priorities. Retailers leveraging multiple tools, particularly those focused on value and convenience, are seeing the strongest gains in loyalty and sales,” Richard says.
“This year will be a year of innovation, with loyalty programs and personalised solutions set to cement their role as cornerstones of retail success. As a trusted delivery partner for Australia’s major retailers, CouriersPlease has also made significant investment in automation, technology, cross-border shipping solutions and convenient delivery choices to help retailers deliver a higher standard of customer experience.”
Keep shoppers spending Survey results below
Q1. As online shopping competition increases and consumer spending slows amid cost-of-living pressures, what tactics are you using to increase revenue and customer loyalty?
| By location | ||||||
| Answer options | Total | NSW | VIC | QLD | SA | WA |
| Buy Now pay Later (BNPL) options | 43% | 41% | 44% | 50% | 53% | 41% |
| Omnichannel retailing (eg: mix of social media, website, online marketplaces, physical stores) | 22% | 24% | 24% | 22% | 27% | 18% |
| AI (eg: for faster customer service responses) | 24% | 25% | 29% | 22% | 13% | 23% |
| Loyalty programs (eg: discounts/‘points’ on repeat purchases) | 47% | 50% | 47% | 53% | 40% | 36% |
| Next-day or same-day delivery | 30% | 32% | 24% | 41% | 20% | 18% |
| More frequent sales | 32% | 28% | 31% | 31% | 47% | 18% |
| More customer outreach (eg: newsletters or SMS) | 17% | 10% | 22% | 16% | 20% | 23% |
| More delivery choices (eg parcel collection points, or delivery to a neighbour) | 20% | 16% | 26% | 28% | 0% | 18% |
| Customer ‘gifting’ (eg: samples with purchases) | 21% | 22% | 15% | 31% | 20% | 23% |
| None of the above | 12% | 15% | 11% | 13% | 7% | 18% |
| By business size | ||||
| Answer options | Micro (1-10 employees) | Small (11-50) | Medium (51-200) | Large (200+) |
| Buy Now pay Later (BNPL) options | 37% | 53% | 49% | 35% |
| Omnichannel retailing (eg: mix of social media, website, online marketplaces, physical stores) | 12% | 22% | 35% | 35% |
| AI (eg: for faster customer service responses) | 13% | 22% | 43% | 35% |
| Loyalty programs (eg: discounts/‘points’ on repeat purchases) | 28% | 59% | 60% | 65% |
| Next-day or same-day delivery | 31% | 19% | 38% | 39% |
| More frequent sales | 28% | 36% | 32% | 31% |
| More customer outreach (eg: newsletters or SMS) | 15% | 19% | 19% | 19% |
| More delivery choices (eg: parcel collection points, or delivery to a neighbour) | 10% | 21% | 32% | 31% |
| Customer ‘gifting’ (eg: samples with purchases) | 17% | 17% | 30% | 27% |
| None of the above | 27% | 3% | 0% | 4% |
Q2. Are these strategies working for you?
| By location | ||||||
| Answer options | Total | NSW | VIC | QLD | SA | WA |
| Yes, sales have increased in the last year | 29% | 32% | 26% | 34% | 13% | 36% |
| Yes, we are seeing more customer loyalty | 43% | 38% | 42% | 47% | 47% | 36% |
| Yes, business costs have decreased | 6% | 4% | 15% | 3% | 0% | 5% |
| No | 22% | 25% | 18% | 16% | 40% | 23% |
| By business size | ||||
| Answer options | Micro (1-10 employees) | Small (11-50) | Medium (51-200) | Large (200+) |
| Yes, sales have increased in the last year | 24% | 31% | 32% | 35% |
| Yes, we are seeing more customer loyalty | 37% | 48% | 51% | 39% |
| Yes, business costs have decreased | 4% | 9% | 8% | 8% |
| No | 35% | 12% | 8% | 19% |