The report, Beyond the Basics – Why the largest Australian retailers are losing the online battle, evaluates 62 of Australia’s largest retailers across four retail sectors – clothing and accessories, household goods, department stores, and food retailers. The research looked at four key online areas—the retailer’s website, social media, email/online CRM and instore integration. 

Out of the retailers reviewed, less than one third are using more sophisticated selling tools such as user reviews and videos—proven to be effective methods to increase sales. 

Surprisingly, two thirds of the big retailers are only doing the absolute minimum when it comes to collecting customer data (name and email) and provide little to no social engagement for their customers, nor the higher level of personalisation that consumers are coming to expect.

The report says that unless Australia’s online retail sector improves its online strategies, it will continue to lose business to overseas players. As a start, eMarketingConnected suggests that retailers need to take an integrated cross-channel approach that is specific to their customers. 

“Smaller retailers have very little to benchmark themselves against in terms of best practice, unless of course they look abroad for leadership when it comes to first class retail marketing habits,” Paterson said.

“If Aussie retailers don’t look to their overseas competitors for inspiration, they stand to lose customers who are becoming increasingly sophisticated in their use of multiple online channels—review sites, blogs and social networks—so they can find out more about a brand, product or service.

“The good news is that there is room for positive change in the maturity of the online retail sector. The first step for retailers is to gain a deeper understanding of who their customers are and how they prefer to research and buy products, that way they can implement the right multichannel engagement strategies. It’s only through offering rich, meaningful experiences both online and in-store that retailers will see sales improve,” he said.