THE ICONIC is Australia’s most loved retail brand, according to the inaugural Most Loved Retailers Report produced by Power Retail. Power Retail’s Head of Data, David Fear, comments, “THE ICONIC excels with younger customers by offering fast delivery, responsive customer service, and excellent returns policies, all of which are highly valued by this age group. These strategies have made the brand a standout in the retail industry”.
As the younger generation adopts new channels for interacting with brands, they must adapt their customer experience programs to reflect this. “Gen Z”, Meera Chiba, Sales Director at Medallia advises, “is much more willing to share their shopping experiences online with their friends and seek their advice when making purchasing decisions. 55% of Gen Z are almost twice as likely to find it important that a brand or retailer acknowledges their social media posts about their shopping experience5. This highlights the need for brands to grow their customer listening programs beyond relying solely on survey-based feedback if they want to truly understand their customers”.
On THE ICONIC being named Australia’s most loved retailer, CMO, Joanna Robinson, says, “We put the customer at the heart of everything we do so it’s rewarding to know our hard work is paying off. THE ICONIC launched in 2011 to help create a better way for people to shop fashion and lifestyle. Since then, we have worked to remove the barriers of online shopping and make the experience more inspiring, convenient, and engaging for customers. So, to be described as Australia’s most loved brand feels like we areliving our purpose as a company”.
Customers want shopping experiences that go beyond price
Based on a survey of over 12,000 shoppers, the report identifies convenience, variety, and return policies as the new pillars of customer loyalty. The findings from the report paint a fascinating picture of the evolving Australian retail landscape.
Customers are seeking a more holistic shopping experience that goes beyond just rock-bottom prices. Building trust through convenient returns, offering a wide variety of products, and prioritising a smooth shopping experience are the new battlegrounds for retailers vying for customer loyalty. Meera Chiba, Sales Director at Medallia says, “Price is important to consumers, but it’s typically not a driver of loyalty. We know that consumers are looking for more when they shop. For example, 61% will spend more with a brand that offers a service tailored to their needs, and 82% say “personalised experiences” drive their choice of brand in at least half of shopping situations1”.
Robinson says, “We are proud of having set industry standards with our delivery and returns offering and our range of in-house tech solutions that enhance and personalise the overall online shopping experience (e.g. Follow the Brand, Snap to Shop, Wishlist Boards). Creating a better way for people to shop also means we are always reaching for the next thing and pursuing progress. Being better to us isn’t just about settling for good enough”.
She adds, “We understand that customers crave more than just a good price. They want to connect with a brand that reflects their values, identity, and the image they strive for. That’s why we have been building trust and confidence since our launch in 2011 by becoming a reliable online shopping destination that eliminates the stress often associated with online retail”.
When the cost of living pressure is high, customers have an even lower tolerance for poor, irrelevant, and disconnected experiences. Chiba comments, “Convenience, variety, and return policies are all important factors in creating a seamless shopping experience. For example, using insights from their customer feedback program, Officeworks implemented a notification system that customers can use to tell the store when they’re on their way to click-and-collect. This reduced click-and-collect wait times by two-thirds and increased NPS by 77%2”.
Industry Benchmark
The Power Retail report is designed to offer Australian retailers an objective benchmark on their performance and help them identify areas for improvement. Fear highlights, “We designed this report as an independent study to provide retailers with an objective benchmark, acknowledging that while many retailers conduct their own NPS data collection, there is often inherent bias in surveying their own customers. Our report offers a unique perspective that allows retailers to see where they stand in comparison to others in the industry”.
Using the NPS metric as an indicator of customer loyalty to an online retailer, Power Retail asked customers how likely they were to recommend a brand based on recent buying experience. Fear says, “We chose NPS because it’s widely used and easily comparable across the retail industry, making our results more accessible. Additionally, its simplicity allows for efficient data collection and provides clear insights into customer loyalty”.
Before even being presented with the query, respondents were first asked about their recent transactions with specified retailers, and only those who confirmed recent purchases were included in the study. Fear comments, “I was surprised by the intense competition within industry verticals, with several leaders like Adore and Mecca achieving the same top NPS. It was also notable to see Pureplay retailers performing exceptionally well”.
“Despite the perceived advantages of Multichannel retailers, such as Click & Collect and physical store returns, Pureplay retailers are innovating effectively to meet and exceed customer expectations in the online space. This demonstrates their ability to adapt and thrive in a highly competitive environment”.
The other top performers identified include City Chic; Forever New; Dusk; Mecca; Adore Beauty; Pet Circle; Sketchers; Bonds; and Repco.
Looking ahead, retailers who can adapt to changing consumer preferences stand to gain a significant advantage. Focusing on building trust, streamlining processes, and offering a diverse range of products will be key to securing a coveted spot among Australia’s most-loved retailers.
1 https://www.medallia.com/resource/how-consumers-feel-about-personalization/
2 https://www.itnews.com.au/news/officeworks-data-and-analytics-investments-pay-off-600039