A new study has suggested Australia is a three-spend economy, which it says is as significant as the two-speed economy that the nation has heard so much about.

According to research conducted by Sydney-based Research Now for management consultancy firm Growth Solutions Group, there are the young spenders, the middle Australia family handicapped by cost of living increases and very keen to see some mortgage relief and extra cash via lower interest rates, and the mixed spenders and savers at the 65-plus end of the population.

Growth Solutions Group managing director Graeme Chipp explained “What retailers need to be asking in the present conditions is how they can drill down deeper and think through how to reach that particular percentage of the population that clearly can be enticed to spend more, or at least maintain spending levels.”

Mr Chipp said the survey strongly reinforces recent discussion and debate about the need for much sharper customer segmentation and creating marketing solutions focused on the mindset of that customer.

“There are clearly very significant differences between what a 25-year-old wants, expects and is willing to pay and a 45-year-old. The writing is now on the wall in terms of being far, far more targeted in order to reach the consumer who is able and willing to spend, and that the line between bricks and mortar and online stores is indivisible, whether retailers like it or not.

“Constant price-discounting doesn’t cut it. If a third of consumers are saying better service would encourage them to spend more, it’s time to directly ask exactly what they mean by this and start making changes. Screaming price and leaving the rest of the journey to the shopper is not going to win.”

Survey respondents complained about a wide range of factors in addition to customer service and the in-store experience, including uncertainty about interest rates, share prices, slowing wages growth, convenience and new taxes.

Mr Chipp said the survey reflected the most recent ABS data which indicated incremental or zero growth during July.

“It seems the reality is that some retailers are hurting severely, others are managing to hold steady, and a few others are enjoying real success stories,” he said.

“I would say the differences between them come down to how definitively they have defined the job to be done for their customer and focussed their product offering accordingly.”