Retail 2024: The great step forward – Webinar

Data is one of the most valuable assets that a business has and retailers are notoriously bad at investing in their data. Retailers sit on a treasure trove of information that is often not easily accessible or well understood. Understanding who your customers are and what influences them all rests in their data. By understanding the data, you can understand your customer’s problem statements so you can reimagine their retail experience to solve for this.

Consumers need to feel that they are getting great value every time they spend a dollar. For a retailer to be the best, they need to make their offers sharper than competitors, which may include better service and shorter wait times. Whilst growth in E-Commerce is slowing, it is here to stay, and major retailers are continuing to invest heavily in their online sales channel.

Each time interest rates have risen in Australia, consumer's confidence belts have been hit, with rate hikes slowing down year-on-year sales growth. In addition, Australian household savings rates have fallen well below their long-term average, impacting consumer spending power. While KPMG Australia’s Retail Health Index suggests the worst may be behind us, the road back to a healthy retail environment will take time, and retail trading conditions are not expected to normalise until well into 2025.

For 7-Eleven Australia, nailing the customer loyalty paradigm means the customer will walk by a competitor to get to a 7-Eleven store. This means 7-Eleven’s unique value proposition is based on quality customer service in store and communication through digital channels providing content that is genuinely useful to the customer. i.e., If you are going to give a customer an offer, make sure it is an offer that counts. By understanding your customer's individual purchasing behaviour, you are giving your customers choice that is relevant to them.

Look at opportunities to empower your customer through technology. Leverage machine-based learning to develop personalisation at scale and improve your understanding of customer needs in a data rich world. AI and data analysis will be a big part of the future for retail, as we see generative AI move through the hype cycle towards the delivery of sustainable improvements in retail operations, supply chain, and customer experience.

While customers may not always be willing, or able, to pay extra for sustainable products, they still expect ESG and circularity to be embedded in a retailer’s operating model, product range and brand values. This means retailers need to prioritise the steps to deliver on their sustainability promises, no matter what category of retail you operate in.