If you're a small to medium retail business, the last 12 months have either been one that is extremely exciting or somewhat frightening. As Australia’s fondness for online shopping continues to grow, and previously untapped sections of the Australian population become more comfortable with online shopping, the shift towards digital will accelerate. Australians spent $21.65 billion (NAB Retail Sales Index) online in 2016. That means online spending on physical goods increased by approximately 10.4%, compared to bricks-and-mortar spend which only increased by approximately 3-3.5% (depending on the source).
Lot's of numbers there. But what does it mean? It means both physical and online sales continue to grow, but online is growing faster (queue Landlord's shiver). But it is important to note that online retail still only makes up 7.1% of all retail sales in Australia (Landlord's put the bottle of Whiskey away - for now).
The key takeaway that lies beneath the surface of these numbers is that customers have more options and are more discerning than ever. Put quite simply, if any key part of your offer is not sharp, than it's see you later to growing sales. And then businesses like Amazon (coming soon to every Aussie household near you) will start to (very slowly but surely) take your base sales to pieces and pad their already huge pockets.
Let's talk about customer experience. The majority of Customer's today are not just purchasing goods, they are buying AN EXPERIENCE. How is the experience you're giving your customer right now? Honestly? Let's tackle this in depth next time.