With the end of financial year approaching, consumers are looking for markdowns and businesses are hoping to clear excess stock according to new research conducted for marketing services company Salmat.
Salmat commissioned the Australian Consumer, Retail and Services (ACRS) research unit to investigate how shoppers prepare for and purchase, during the EOFY sales. The survey found two-thirds of Australian consumers are considering a purchase and of those, 20 per cent liked to plan their purchase 1-6 days in advance.
The study also suggests research also has an important role to play in Aussie purchasing behaviour, with most shoppers going online to gather information on products and search for the best deals.
Interestingly the study found those with the highest combined household incomes ($100-149k) were most likely to seek deals while those earning the least (under $40k) were the least motivated to search for the best price.
According to the research, half of the shoppers indicated that a physical store is an influential touchpoint when deciding on which brand to purchase. Other touchpoints that are influential to shoppers include promotions (36 per cent), retailer websites (29 per cent) and web searches (29 per cent) demonstrating the importance of having a strong online search presence.
Salmat’s Retail Business Consultant Dan Salter suggest the results show business owners need to invest in their brand’s website and e-commerce channels, along with SEO and SEM to improve a brand’s visibility in online channels.
“Marketers should heed consumer behaviour ahead of the sales periods. Our research shows that the majority of respondents plan their EOFY shopping in advance, so retailers can garner a real advantage by ensuring timely and effective communication in the critical planning stages of consumers purchase journey,” says Slater.
“Promotions delivered to consumers at key times will ensure greater ROI in key sales periods and deliver real value to consumers. Our advice would be to start heavy promotion from the start of June, with one-third of our respondents stating that they will start searching for EOFY (sales) then.”