Majority of buyers only swayed by prices, according to new study
A study of the retail sector by advertising platform Criteo has found that buyers are most likely to be swayed by the offer of a discount.
The announcement:
As Australia faces a ‘sales frenzy’ ahead of the end of the financial year, Criteo, the advertising platform for the open Internet, has revealed that 57% of Australians will buy products from a new brand if they’re offered a discount, overwhelming retailers at the prospect of increased competition.
The ‘Why We Buy’ Survey found that if retailers do not offer a cheaper price than their competitors, consumers will swap allegiances, with 54% of Australians returning to a brand if they offer the lowest price. The study comes as retailers struggle to maintain market share amidst the rise of discounters.
Colin Barnard, Commercial Director, Criteo Australia and New Zealand, said Australian businesses are cranking up discount offers leading up to the end of the financial year, but not without a cost.
“It is no surprise that Australians love a bargain but what we might not realise is the cost it is having on our retail industry with local businesses facing immense pressure to continually offer sales and discounts to customers, impacting overall profit margins.”
“Discounts have traditionally enticed new customers to make impulse buys, often with brands that they may have not considered buying before. In today’s retail landscape, the number of sales available has completely diluted the market, challenging brands to stay even more competitive,” continued Barnard.
A further 50% of respondents said they will purchase a new brand if it’s recommended to them by a friend while 48% will purchase a new brand if they’re offered a free trial or sample. Other motivations behind Australian consumers returning to a brand include:
- they provide a discount (55%)
- they have an easy-to-use website (47%)
- the brand aligns with their values (37%)
Digital advertising strengthens customer loyalty
The ‘Why We Buy’ Survey provides insights into how retailers can create a positive customer experience using digital advertising to drive loyalty and retention, with:
- 48% of respondents stating that online ads help them discover new products
- 45% of respondents stating that they like when online ads offer a discount for relevant products
- 55% of respondents turned off when they see ads of products they’re not interested in
- 40% of Australians preferring to shop using their mobile phone
- Websites (52%), Facebook (46%) and Email (41%) being the most popular online channels helping Australians discover new brands
“Brands that aren’t necessarily the cheapest but the most competitive are most likely to succeed in this climate,” said Barnard. “Matching consumer expectations with appealing content that inspires shoppers with the right deal at the right time is key, which is where Artificial intelligence, data and machine learning come in.”
Source: Criteo media release
