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Study reveals UK shoppers swap loyalty for retail discounts

21st Feb 2013
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New research into shoppers motivation has revealed consumers are saying goodbye to retail therapy as bargain hunting and discount purchases have become the norm.

According to Ipsos Mori and The Logic Group’s annual analysis of consumer loyalty trends, 42% of consumers prefer to receive offers whilst they shop – with more than a third of consumers (37%) happy to receive general offers rather than rewards tailored to their shopping habits.

Driven by economic uncertainty over the past four years, consumers now choose to shop around for the best bargains with over three quarters of consumers currently subscribing to loyalty schemes.

According to Jon Worley from The Logic Group, “The definition of customer loyalty has undergone a fundamental change in the past four years of economic uncertainty, and the Internet has necessitated a rethink of customer engagement strategies. Promiscuity on part of the consumer is a reflection of the perceived value of their interaction with merchants and brands.  Consumers want more bang for their buck.”

The research also documented the rise of the technology-enabled customer. In 2009, the survey revealed that more than 50% of the public was not an online customer of any business whereas today, figures from Ofcom show Brits now spend an average of $1,718 (£1,083) a year.

Mcommerce also shows no signs of slowing with figures from the survey showing nearly one in six (16%) of Brits now openly using their mobile phone to check product details, prices and reviews while shopping in-store. Additionally, one in ten consumers have requested loyalty scheme offers on their mobile phones, and over one in ten have received them on their devices.

Worley added: “The rapid proliferation of mobile technology and digital social communications will play an important part in the multichannel customer engagement strategies in 2013. Today, consumers place maximum emphasis on ‘honesty and integrity’ when judging a company’s reputation.

“Merchants should integrate mobile and social communications channels to understand their customers better and to encourage a favourable reputation through tailored engagement.”


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