7 Strategic Actions for Transforming Customer Experience for Revenue Growth: A Guide for Retailers in the AU Market

For years, a growing number of retailers have been arguing that a good customer experience (CX) is no longer just a “nice-to-have”. Now that retail customers enjoy near-infinite options, delivering great CX is often a decisive factor in driving store revenues, both online and offline. As Australian consumers continue to grow more discerning, retailers must stop thinking of the customer experience as just another expense area and start treating it as the transformative engine that it is.

The recently published Current State of Omni-Channel Retail: Consumer Research Report 2025 Australia from Resonate CX supports this shift. It studies that improvements to the shopping experience can increase conversions, grow basket sizes, and build the long-term loyalty businesses need to keep their successes going.

Here are some of the most critical insights Australian retailers can draw from this study, as well as a few recommendations on how to leverage CX into real revenue growth.

1. Explore Consumer Mindsets and Their Influence on Buying Behaviour

Understanding what drives consumer behaviour is essential for any retail strategy, but particularly so in today’s crowded consumer markets. While demographics and purchase histories are important, retailers must also explore why people shop the way they do. This is where consumer mindsets come in.

A “mindset” refers to a shopper’s core approach to making decisions. It may speak about how they weigh value, price, convenience, or loyalty when they are deciding whether to buy. These mindsets influence everything from basket size and brand switching to how receptive someone might be to promotions or new experiences.

The study identifies three major consumer mindsets within the Australian market:

• Planners (35%) – Shoppers in this segment are price-sensitive, value-focused, and the least likely to increase basket sizes. However, they can bring serious sales volumes due to the size of their segment. The key to winning them over will be to appeal to their focus on value.
• Conditional Growers (44%) – These shoppers are willing to add more to their baskets if their CX expectations are met. However, they will require consistent, on-point engagement to earn their loyalty. This may make Conditional Growers more resource-intensive to nurture, relative to their likelihood of increasing basket sizes.
• Basket Boosters (21%) – These are experience-driven, impulse-prone shoppers with a high willingness to increase basket sizes. While they are the smallest segment, their willingness to buy more when given a better experience makes them a segment worth nurturing for the long term. Notably, Basket Boosters make impulse purchases in 48% of store visits and are twice as likely to pay more for an ideal return experience than Planners.

Of these segments, Basket Boosters may offer easy wins, with CX improvements in returns often resulting in bigger baskets and more unplanned purchases. However, they are the smallest segment and may not be able to offer the total volume represented by either Planners or Conditional Growers. Whichever segment a retailer chooses to nurture, personalising the customer experience can enable more consistent revenue growth.

2. Recognise the Significance of Customers’ Information-Seeking Behaviour

Did you know that 97% of Aussie shoppers thoroughly research products before buying? Here’s what they search for:

• Price leads the charge (74%)
• Crucial details like stock availability (43%)
• Active promotions (41%)
• Product range (37%)
• Loyalty programs (25%)
• Ease of returns (22%)

All of these areas are key parts of the customer journey that, when handled poorly, can derail a purchase journey even before it begins. For instance, a lack of information on stock availability or return policies may be enough to cause some customers to delay or even abandon their purchases.

These gaps can occur when different departments hold exclusive access to key pieces of information. For example, someone working in a stockroom may know if a certain item is available, but they may not have access to information on applicable promotions. A salesperson may have this information, but they may not know much about returns if these are primarily handled by after-sales and customer service.

Of course, training helps, but consistently addressing these various information gaps requires close integration between all operational and customer-facing systems. A retail management system or a similar tool can provide accurate, up-to-date stock, promotions, and other key areas to help eliminate these gaps. Managers can then pair this with a customer experience management (CXM) platform to ensure staff get feedback on what customers what and can pro-actively fix those issues. 

3. Discover the Main Drivers Behind Impulse Buying

The study shows shoppers are twice as likely to make unplanned purchases in-store (32%) compared to online (16%). However, real numbers could be even higher, as many impulse buys go unnoticed by shoppers themselves.

When it comes to what sparks spontaneous purchases, shoppers are clear about what catches their attention:

• Attractive promotions – 50%
• Limited-time deals – 32%
• Emotional connection – 26%

These factors tap into value, urgency, and personal resonance. Three powerful drivers of impulse buying.

Strategically blending eye-catching promotions, limited-time offers, and emotionally engaging displays both online and in-store can go a long way. Even simple adjustments such as vibrant product imagery or strategically placed offers can significantly boost your sales and elevate the shopping experience

4. Examine the Core Reasons for Cart Abandonment, Both In-Store and Online

If retailers learn the main reasons for cart abandonment, they‘ll uncover opportunities to improve the customer experience and drive more customers through their conversion funnels.

The study found that in-store often faltered due to the following reasons:

• Prices being too high (57%)
• Customers are unable to find what they need (48%)
• Stockouts (47%)
• Better deals elsewhere (29%)

Online cart abandonment somewhat mirrors offline challenges, but reflects the realities of ecommerce deliveries:

• High delivery fees (54%)
• Better deals elsewhere (26%)
• Long delivery times (25%)
• Stockouts (24%)

These issues may not always be easy to uncover. Retailers must use smarter, responsive systems like a retail CXM platform to better identify and fix problem areas that lead to cart abandonment.

5. Assess How Effective Communications Are

When customers abandon a purchase, 60% say follow-up communication is either ineffective or only slightly effective. This tells us that generic emails or SMS messages no longer cut it. To bring people back into the funnel, messaging must be timely, relevant, and responsive to customer context.

Thankfully, personalised messages are easily automated. An email or SMS automation tool can trigger well-timed follow-up messages based on customer actions. Messages can be triggered when customers complete a purchase, abandon their cart, or browse specific categories. Some of these can also integrate with your POS or e-commerce platform to pull in customer data and purchase history, allowing you to send tailored messages like product care tips, upsell recommendations, or limited-time offers, all without manual effort.

6. Understand How the Return Process Can Boost Basket Size

The study demonstrates that return processes directly influence basket sizes upfront. In fact, 4 in 10 customers say an easy return policy is very or extremely important when deciding to add multiple items to baskets. In total, only 8% of customers said that returns were not important to them at all.

Return process features that matter most include:

• Hassle-free processes
• Fast or instant refunds
• No additional fees
• Prepaid return labels
• Transparent policies

Interestingly, nearly 40% of shoppers reported they were willing to pay more for an ideal return experience. This means a retailer’s return process has implications, not just for their basket sizes but also for their pricing strategy, as “premium returns” may be seen as justifying premium prices. 

7. Learn about Customer Delivery Preferences and How to Address Them

Despite the rise of click and collect services, 60% of shoppers still prefer home delivery, even with the added fees. However, the speed of delivery also matters. 75% of shoppers report that they will switch to in-store shopping if delivery takes more than five days. This means that, if a store wants to offer delivery, it must be able to offer it within that time frame to guarantee conversions. Purely online retailers can also consider opening an accessible physical store to facilitate click-and-collect and other in-store visits.

Delivery speed is not the only thing that matters. It’s not even the most important thing. The study found that 67% of shoppers prioritised cost and 54% valued real-time tracking. Speed, on the other hand, was valued by less than half of shoppers at 43%, just above reliability at 37%.

Retailers may be limited in what they can do about cost. However, virtually all retailers that offer deliveries can offer transparent tracking and updates. Retailers that use real-time delivery updates as well as clear expectations can stand out from the competition.

Let Everyday Customer Interactions Drive Your Growth

The report may confirm what you’ve already suspected: the overall customer experience is a serious differentiator, one that drives meaningful loyalty and revenue. From more basic fixes like offering total pricing transparency to less-obvious improvements like return process optimisation, every touchpoint a business has with customers must now be seen as an opportunity to boost conversions and repeat business.

Making these capabilities sustainable requires a platform that organises your data and simplifies finding customer touchpoints that can be improved. As customers become more demanding, integrating a Customer Experience Management Platform that helps you turn insights into action is going to be essential for staying competitive in the Australian retail market.