By Emilia Chambers

Australian consumers love a bargain. According to data from Shopify, 78 percent of us are prioritising value for money.

It’s easier than ever to bag a bargain with retailers seemingly constantly on sale, stemming from the belief that the only way to win is by slashing prices. But here’s the rub: some brands are thriving at full price, even when wallets are tight.

The secret isn’t about ignoring Australia’s discount culture – it’s about understanding what really drives purchase decisions beyond the sale sticker. 

Master your customer psychology

Understanding your audience goes beyond just demographics and into the psychology of why people really buy. When you consider this in the context of value, this doesn’t always mean a low price tag, but actually can come in the form of quality that lasts or value beyond product. 

Mecca is the perfect example of a brand bringing value beyond discounts with its customer-centric strategies. Instead of competing on price, Mecca focused on understanding what its customers valued, which was delivered in the form of personalised service, luxury experiences and expert advice.

Understanding what value really means to your customers can help you focus efforts on delivering the right value to encourage a full-price purchase. To do this, undertake deep customer research to identify specific audience segments and the underlying motivations that drive their purchase decisions.

Build emotional brand connections

The strongest predictor of loyalty and pricing power isn’t convenience or function, it’s the emotional bond customers form with brands that keeps them coming back. Brand connection can be built from various factors, including self-brand integration (how consumers identify themselves through brands), positivity driven by brand interactions, passion-driven behaviour, and a strong sense of authenticity. 

The most notable example of building brand love is Kmart and its transformation from discount retailer to one of Australia’s top three trusted brands, achieved through innovation, storytelling and relatable retail experiences. By focusing on affordability, delivered through its own-brand innovation, Kmart has built a loyal following of customers who feel welcome, regardless of who they are. While Kmart’s pricing is arguably discounted versus many other brands, its transformation is a masterclass in the impact connecting with consumers in the right way can have.   

To connect with consumers, develop authentic brand values that resonate with your target audience and demonstrate them consistently across all touchpoints. Create storytelling that connects emotionally rather than just rationally; how your brand supports your customers beyond the products you make.

Reinvent loyalty programs

Data from the Research Society highlighted that a staggering 95 percent of Australians are members of loyalty programs, making these platforms powerful tools when communicating and offering value, but not just in the form of discounts. Loyalty programs can showcase shared values and create deeper brand affinity, while also opening doors to opportunities that only members can access. 

The North Face is a great example of a loyalty program that goes well beyond discounting. The program allows its XPLR Pass members to earn points by purchasing merchandise or attending special events, whichever works for a customer’s lifestyle. When it comes to redeeming their points, customers can use points towards products or unique travel experiences, again giving customers flexibility to choose what they want most. The XPLR Pass also gives customers early access to limited-edition collections and member-only field testing.

To drive loyalty outside of discounting, audit your loyalty program to ensure it’s reinforcing brand value rather than just offering discounts. Create exclusive experiences and opportunities that make members feel special beyond just monetary savings.

The full-price future

While Australian consumers have become more discerning about where they invest their money, they haven’t abandoned quality, loyalty or brand love. The discount trap is real, but it’s not inevitable. By focusing on emotional connection, experiences and value beyond price, brands can successfully encourage full-price purchases even in Australia’s competitive market.

The choice is clear: race to the bottom on price, or rise to the top on value.

Emilia Chambers is the head of strategy at The Pistol.

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