How to turn one time buyers into loyal fans

Retailers share a common goal, which can be summed up as a simple equation: more customers = more revenue. But achieving this isn’t always straightforward, especially when price remains a key factor. According to the 2024 Australian Retail Report, 57 per cent of Australian shoppers have switched brands for a better price, a greater proportion than the year prior (49 per cent). So how can you lure more customers and keep your existing ones loyal? Shaun Broughton, Managing Director, APAC & Japan at Shopify explains.

But while offering discounts is one path you can take to lure in potential customers, consistently competing on price isn’t always feasible in the long term and can put pressure on your profit margins.

As such, it’s important to balance discounts with other tactics that elevate the shopping journey. These can range from loyalty programs to product bundles and a seamless user experience, which appeal to the value-driven customer while minimising financial impact.

Three ways to attract customers without slashing prices

Boost sales with smart bundles

Offering product bundles is one way retailers can enhance the customer experience while boosting the number of units per transaction (UPT). Bundling involves businesses offering complementary products as a package for a slight discount or adding a “free” add-on product to increase perceived value. Merchants can bundle an array of slow-moving items with a high-value product to help clear surplus stock or offer subscription boxes to encourage more predictable, recurring revenue.

Including a personalised, hands-on element in your bundling strategy can also add value. For instance, instead of rigid, pre-set selections, Australian fragrance brand Who Is Elijah offers a ‘build-your-own-bundle’ option, allowing buyers to mix and match any 10ml product. This technique has led to larger basket sizes during sales periods like Black Friday.

When choosing products to bundle, it can be helpful to look at what items your sales data shows are commonly bought together. Consider which replenishable items are bestsellers and bundle them in multiple quantities to increase average order value (AOV). It’s also important to ensure your POS system can process bundles efficiently to prevent a queue build-up at checkout. Implementing the right bundling approach can enhance your products’ perceived value and elevate your store’s customer experience.

Turn shoppers into loyal fans

Loyalty programs offer another way to attract value-driven customers. According to Shopify research, 45% of Australians would remain loyal to a brand if it offered them loyalty points or rewards. Implementing a reward system can incentivise shoppers to purchase more frequently and choose a brand over their competitors.

One of the most common ways to reward customers is through a points-based program, which allows them to earn points that can be redeemed for freebies, cash back, or exclusive perks. Another option is a tiered loyalty program, which offers different benefits based on a shopper’s spending levels and creates a sense of achievement, motivating them to buy more and reach a higher tier.

Understanding your customers and segmenting them into different groups can help you design a loyalty program tailored to their needs and desires. By leveraging sales data, you can identify standout products to use as “point multipliers,” maximising impact. A successful loyalty program not only promotes higher AOV but strengthens customer retention, turning shoppers into brand advocates.

To increase loyalty, create a frictionless user experience

Delivering value isn’t just about the freebies and bundles you offer—it’s also about creating a seamless shopping journey. It can be frustrating to see something you like, only to be bogged down by a slow website or a confusing and long-winded checkout flow. Unsurprisingly, close to a third (32%) of shoppers would be more loyal if offered a seamless user experience.

When optimising your website, perfecting the basics is key. Clear navigation, fast load speeds and a frictionless checkout can make all the difference. For example, Petstock Group found that reducing the checkout process from three steps to two during their website relaunch led to significantly faster transaction speeds, higher conversions and lower drop-off rates.

Meanwhile, when considering new features, Shopify research found shoppers are most interested in tools that help them save money, time and effort. These include price comparisons (36 per cent), mobile applications (27 per cent) and real-time order tracking (25 per cent).

Ultimately, today’s shoppers expect ease and efficiency. If a purchase journey feels like too much work, they won’t hesitate to abandon it.

Provide value beyond discounts

While price is still a big consideration for many shoppers, competing solely on discounts isn’t always the best long-term strategy. To drive customer loyalty and increase sales, retailers should incorporate a mix of value-focused tactics that enhance the overall shopping experience. Through bundling complementary products, rewarding loyalty with rewards programs and streamlining the user experience, brands can attract customers and keep them coming back.

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