A recent survey by CouriersPlease reveals that Australian retailers are increasingly turning to loyalty programs and Buy Now Pay Later (BNPL) options to secure repeat customers in 2025.

The survey, which included 203 retailers across the nation, indicates that 47% of retailers are employing loyalty programs to foster customer loyalty, while 43% are adopting BNPL to attract financially constrained buyers.

Economic pressures are influencing consumer behaviour, with 86% of Australian households actively monitoring their finances, according to CommBank’s Cost of Living Insights Report. In response, retailers are adjusting their strategies to meet evolving consumer demands.

Richard Thame, CEO at CouriersPlease, stated, “Loyalty programs and BNPL are not just nice-to-haves, they are essential for engaging value-driven shoppers in today’s economic climate. Retailers are pivoting quickly to deliver the flexibility and convenience consumers demand while positioning themselves for long-term growth.”

The survey highlights that 100% of medium-sized retailers are utilising loyalty, discounting, or delivery offers to maintain competitiveness. Large businesses, defined as those with more than 200 employees, are particularly embracing loyalty programs, with a 65% adoption rate, compared to 28% for micro businesses. Additionally, 49% of medium-sized businesses are focusing on BNPL.

Other strategies being employed include frequent sales, with 31% of retailers using this tactic, and next-day or same-day delivery, adopted by 30% to boost revenue. Artificial intelligence is being utilised by 24% of retailers to enhance customer service and streamline operations, while omnichannel retailing and customer gifting are adopted by 22% and 21% of retailers, respectively.

Regional differences are evident, with Queensland retailers leading in loyalty programs, as 53% prioritise customer rewards. In contrast, West Australian retailers are less engaged, with 18% not using any of the surveyed strategies. South Australian retailers are leading in the use of frequent sales, with 47% employing this tactic.

The survey also reports 43% of retailers have seen increased customer loyalty, while 29% have experienced increased sales in the past year. However, 22% of retailers admit that their strategies have not delivered the desired results.

“As predicted interest rate cuts start to ease some financial pressure this year, the impact will likely be gradual, so it is likely we’ll see retailers leaning on tools such as these to engage value-conscious shoppers. Retailers that stay agile and innovative will be the ones to win in this changing landscape,” Thame commented.

CouriersPlease partners with over half of Australia’s major retail brands. The company has received multiple accolades, including the 2024 Retail Innovators Awards for Franchise Excellence and the NORA Solution Partners Best Carrier Award in 2023.

“These results underscore the importance of aligning strategies with shopper priorities. Retailers leveraging multiple tools, particularly those focused on value and convenience, are seeing the strongest gains in loyalty and sales,” Thame further noted.

“This year will be a year of innovation, with loyalty programs and personalised solutions set to cement their role as cornerstones of retail success. As a trusted delivery partner for Australia’s major retailers, CouriersPlease has also made significant investment in automation, technology, cross-border shipping solutions and convenient delivery choices to help retailers deliver a higher standard of customer experience.”