Consumer loyalty erodes as cash-strapped shoppers seek deals - report
The cost-of-living crisis is affecting shopper behaviour with loyalty to stores and brands wobbling in the face of the hunt for a better deal, although loyalty schemes are a key way to keep people’s attention.
That’s according to new research from American Express. It said 23% of shoppers are now looking for the best deals rather than automatically spending with their regular shops.
The company spoke to 2,000 UK consumers and found that the focus for them now is on quality, convenience and value for money.
And they’re not always getting what they want. On the quality front, 62% of UK shoppers believe they’ve seen a dip in the quality or size of products in the last few months as retailers grapple with supply chain challenges. But as many as 47% say they prefer to buy fewer, better-quality items.
Meanwhile, 77% are focused on value for money, 71% say they proactively look for sale items when shopping, and 52% are more likely to shop with a retailer that has a loyalty scheme. In fact, 61% believe retailers can do more when it comes to rewarding them for their custom, indicating loyalty schemes really are becoming a key differentiator for consumers.
And 60% say a convenient shopping experience remains a high priority when spending with a retailer, with 65% valuing businesses that accommodate last-minute purchases and quick delivery.
Despite the obsession with value and saving money, the appetite among shoppers is still there for big ticket items and leisure spending, with 42% who are still spending in this area saying they’re dedicating the largest amount of their disposable income to holidays.
And crucially, 72% of consumers say it remains important to treat themselves, with feel-good purchases still on the agenda, which is key in the lead up to Christmas.
Amex said there’s an opportunity for retailers to find new ways to attract and engage customers and personalise their offer, potentially with targeted offers or discounts, especially as 44% say they’re willing to share their personal data for a better shopping experience.
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