Digital interactions influence 40% of store visits

Digital interactions such as visiting a website influence 40% of retail brick-and-mortar store visits in Australia, reflecting strong consumer appetite for digital engagement, new research from Deloitte shows.

Australia was the third most digitally influenced nation in a study of six companies — behind the US (49%) and Canada (41%) but ahead of Germany (30%) the Netherlands (30%) and the UK (27%).

Two-thirds of Australian consumers use a digital device before a shopping trip and nearly a third use one while shopping. Of those customers using digital devices before a shopping trip, 47% use their device to compare products, 42% to access product information and 33% to check product availability.

The study defined digital influence as the percentage of physical store visits affected by shoppers’ use of devices including smartphones before or during the trip. Based on the trajectory in the US, Deloitte expects digital to influence the majority of in-store visits within the next few years.

While local retail sales have not transitioned online as quickly as in some other markets, this is rapidly changing, the report shows. It also notes that when Australian consumers use digital devices to research, find and compare products it boosts average conversion rates by 25% and order sizes by 21%.

“The findings from this digital divide report should be a wake-up call for the retail sector, which is at risk of underestimating local consumer appetite for digital engagement,” David White, Deloitte partner and retail industry leader, said.

He noted that a recent survey over Christmas found that just a third of Australian retailers have made omni-channel commerce their top strategic priority.

“Global brands have educated Australian consumers to expect internationally competitive pricing, an endless aisle and greater shopping convenience. Digital will soon be the deciding success factor in retail.”

Image courtesy of John under CC