As Aussie shoppers tighten their belts, retailers are pulling out all the stops to keep them spending, with loyalty programs, flexible payment options, and fast delivery leading the charge.

A new survey from CouriersPlease reveals that nearly half (47 per cent) of Australian retailers are leaning into loyalty programs to keep customers coming back, while 43 per cent are offering Buy Now, Pay Later (BNPL) options to attract budget-conscious buyers. Medium-sized businesses (51-200 employees) are the most proactive, with 100 per cent of those surveyed using at least one sales-boosting tactic, from discounting to delivery perks.

The battle for customer loyalty

With the cost-of-living crisis putting pressure on household budgets, retailers are focusing on strategies that offer value and convenience. Loyalty programs are proving particularly popular among large businesses, with 65 per cent using them. This is more than double the rate of micro businesses (28 per cent). Meanwhile, BNPL has become a key drawcard for shoppers looking to spread out their payments, with almost half (49 per cent) of medium-sized businesses embracing the payment model.

Richard Thame, CEO of CouriersPlease, says these tools are becoming essential for retailers trying to stay competitive.

“Loyalty programs and BNPL aren’t just extras anymore; they’re must-haves for engaging today’s value-driven shoppers. Retailers who can adapt quickly and offer flexible solutions will be the ones who thrive,” Thame says.

More than just points and payments

Beyond loyalty programs and BNPL, retailers are also doubling down on speed and convenience. The survey found that frequent sales (31 per cent) and next-day or same-day delivery (30 per cent) are among the top strategies being used to drive sales.

Artificial intelligence (AI) is also gaining traction, with 24 per cent of retailers using it to enhance customer service and streamline operations. Omnichannel retailing (22 per cent) and customer gifting (21 per cent) are also proving popular, while customer outreach via newsletters remains the least adopted strategy at just 17 per cent.

Small vs big: Different approaches to boosting sales

The survey highlights a clear divide between small and large retailers when it comes to sales strategies. While large retailers (200+ employees) are leading in omnichannel retailing (35 per cent) and AI adoption (35 per cent), micro businesses are struggling, with 27 per cent admitting they don’t use any tools to increase revenue, likely due to budget constraints.

Retailers in different states are also taking varied approaches. Queensland leads the charge in loyalty programs (53 per cent) and BNPL adoption (50 per cent), while South Australian retailers favour frequent sales (47 per cent). On the flip side, West Australian retailers appear less proactive, with 18 per cent saying they don’t use any of the strategies surveyed.

Do these strategies actually work?

Are these tactics delivering results? According to the survey, the answer is mixed. While 43 per cent of retailers report greater customer loyalty, only 29 per cent have seen a direct increase in sales. Meanwhile, 22 per cent say their strategies haven’t paid off at all.

Despite this, Richard Thame remains optimistic, predicting that 2025 will be a year of innovation for the retail sector.

“As interest rates start to ease, we’ll likely see a gradual shift in consumer spending habits. Retailers who stay agile and focus on value and convenience will be best positioned for long-term success,” Thame says.

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