As retailers nervously anticipate the upcoming Black Friday to Christmas shopping cycle, the latest Customer Loyalty Index from SAP Emarsys won't calm frail nerves. Instead the data suggests a potential dip in Black Friday spending among Australian consumers.

The 2023 index indicates that 40% of consumers will not be spending more on Black Friday than they did in the previous year. Furthermore, the data suggests that 30% of consumers plan to purchase the majority of their Christmas presents during the Black Friday weekend.

The index also provides a breakdown of spending by gender and age. Men are expected to spend an average of AUD$157, compared to AUD$113 for women. Those aged 16-24 plan to spend AUD$182 on average, a stark contrast to the AUD$42 average spend anticipated among the over 55s.

Interestingly, the index reveals that 41% of respondents will remain loyal to retailers they patronised on Black Friday, even after the sales conclude. However, Will Wilson, RVP, APJ at SAP Emarsys, warns that 'Incentivised Loyalty' — loyalty achieved through discounts and deals — is on the decline. Wilson suggests that retailers need to offer more than just discounts to secure sales and long-term loyalty.

'Incentivised Loyalty' is no longer enough to secure customer loyalty. Retailers need to embrace a value exchange, offering elevated customer experiences, such as VIP access to new products, and omnichannel personalisation,' Wilson states.

One retailer that has embraced this approach is City Beach, an Australian surf and streetwear store. The company is using a Mobile Wallet to engage with customers across multiple channels, delivering real-time, personalised incentives. James Neill, Customer Lifecycle Manager at City Beach, said that the inclusion of a digitalised wallet has expanded customer loyalty by personalising products and shopping experiences across generations.

Wilson also emphasises the role of AI technologies in anticipating consumer preferences and delivering the best possible deal at the perfect moment.

The research was conducted by Opinion Matters between August 17 – 23 2023, surveying 2,016 Australian consumers.

Want your daily shot of #AI powered, human curated news? Become a member of @Mi3Australia and ensure you get Mi3's Fast News daily newsletter straight to your inbox here

Got news you want to share with Mi3 Fast News? Email your media announcements with either Word or PDF attachments plus images to fastnews@ai.mi-3.com.au