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Discounting "not a sustainable strategy"

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16th Nov 2012
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Retailers may be battling to list their best Black Friday deals this week but new research has revealed offers and discounts are not a sustainable means to grow a customer base.

According to a survey of over 2,000 UK customers by The Logic Group and Ipsos MORI, consumers are more likely to be motivated by gaining points within a loyalty scheme (27%) than price (11%) and offers (9%).

The research also showed that the uptake of additional loyalty schemes among existing members has been strongest for online voucher discount organisations. However, the research revealed that 70% of consumers prefer loyalty schemes where they can earn better offers and services through being more loyal, and almost half (48%) expect to get better service from their loyalty scheme membership than normal shoppers.

Jon Worley from The Logic Group said: “Consumers have had an overdose of discounts and deals. When purse strings are tight, offers are attractive. But eventually most of us prefer some preferential treatment as a result of our long-term loyalty to companies and brands.

“Brand Britain has become eroded as a result of rampant discounting across the board. By ‘flogging’ merchandise through widespread discounting, the prestige of many British brands is being compromised.”

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