Forrester

Why Read This Report

Despite the momentum in Australian online retail, the sector is still quite focused on the basics of customer engagement. When it comes to marketing, this means online retailers don't just prioritize search as online retailers do in most markets — they actually neglect other forms of performance marketing like affiliate marketing. In their efforts to improve their merchandising, retailers are devoted principally to improving their content. And email and telephone support still reign supreme with customer service, though Facebook is proving its value. However, the years ahead will bring more opportunities for online retailers to experiment with and enhance their customer engagement, as this fast-growing sector accumulates the resources and experience it needs to bring its lofty ambitions to life. In particular, affiliate marketing will finally become a mainstream customer acquisition tactic in Australian online retail, while merchants will experiment with richer forms of content like video and seek to measure all activity, including social media engagement, across the customer life cycle.