As you probably already know, Australia's retail sphere is currently jigging to the lively tunes of discretionary spending. With every Aussie's purse strings playing hard to get, the question arises: Is it price or brand loyalty that takes the lead in this dance? And, as you try and pivot in this competitive market, how should you be orchestrating your media budget to gain the largest share of spend? Let’s tango through the answers!
1. The Aussie Shopping Dance: Price vs. Loyalty
Australians, known for their keen sense of value, are now more conscious about where they drop their dollars. While a tempting price tag can make any consumer's heart flutter, there's a deeper, more passionate affair brewing with brands they trust.
Price: No doubt, Aussies love a good deal. Bargain hunts are national pastimes. Flash sales, discount codes, and EOFY sales can quickly sway the masses. Aldi’s latest advert even admits they aren’t the only shopping destination for their clients.
Loyalty: Yet, it's not all about the price. A recent study highlighted that over 60% of Australian consumers are willing to pay slightly more for a product if it means buying from a trusted brand. Why? Because trust, once earned, is priceless.
2. From Brand Awareness to The Grand Conversion
While brand awareness might be the first step, it's the journey to conversion that truly tests the dance stamina.
Awareness: A flashy ad or viral social media campaign might get your brand into the consumer’s line of sight, but is it enough?
Conversion: As businesses, your choreography needs to weave a narrative. One that not only captures attention but also establishes emotional connections and engages first. This journey is where the magic happens, transforming a curious onlooker into an ultimate brand ambassador.
3. The Weight of Loyalty in the Conversion Conundrum
Loyalty isn't just about repeat purchases; it's the linchpin of advocacy. Word of mouth, in the age of social media, has taken on a new, powerful form. Loyal customers don't just buy; they talk, they share, and they influence. In essence, they amplify your brand’s message without you spending an extra dime on promotion.
A surprising 77% of consumers in Australia say they've remained loyal to their preferred brands for over a decade! That's a decade of consistent revenue without the costs of acquiring a new customer.
Allocating Media Funds: The Showstopper Move
If you're wondering where to spotlight your media budget:
Really Know Your Customers: Invest in understanding who they are, what they expect and want from you.
Build Brand Stories: Invest in storytelling. Whether it's content marketing, video campaigns, or podcasts, stories resonate and linger.
Engage & Interact: Use social media platforms not just for ads but for engagement. Respond, interact, and build a community.
Loyalty Programs: Consider loyalty programs that reward not just purchases but brand interactions, referrals, and feedback.
Hybrid Approach: Don't go all digital or all traditional. A mix is essential. While online campaigns target the tech-savvy, traditional media still has a vast reach in certain Aussie demographics.
Curtain Call
In the grand performance of Australian retail, while price might make consumers tap their feet, it's brand loyalty that gets them to dance. As businesses, aligning your media spend with a focus on building, listening, nurturing, and celebrating, loyalty will ensure that your show goes on, with encore after encore.
About the author
Alastair Noble
Alastair has a long and diverse background in media, with 25 years Australian, US & UK experience spanning Advertising Media & Management, Journalism, Public Relations and end to-end business leadership.