British shoppers say discounts are the most important factor influencing where to shop and expect retailers to offer more discounts in recognition of the current uncertain financial conditions, according to research of 2,000 UK consumers by omnichannel promotion solutions provider, XCCommerce.
The research in its latest report reveals more than half of shoppers (56 per cent) say discounts are the most important factor when considering where to shop, increasing to 70 per cent among 18-24 year olds.
Despite 62 per cent of respondents saying their personal financial situation hasn’t been affected by Covid-19, 60 per cent say there are spending less as a result. Accordingly, 52 per cent of shoppers who haven’t previously prioritised finding promotional offers say this is now a consideration with a further 43 per cent identifying this as a key influence when deciding to make a purchase.
Nearly a third (32 per cent) of shoppers are spending more time researching offers and promotions than a year ago with this figure increasing to 48 per cent of 35-44-year old shoppers. Nearly three quarters of all respondents (72 per cent) felt retailers should step up and offer more discounts to support consumers during these challenging times.
Despite this clear consumer demand for greater value, shoppers still indicate there is a fine line between promotion and provocation with 46 per cent of respondents saying they are put off buying from retailers who ‘over communicate’ offers.
Consumer anxiety around the long-term implications of the pandemic has made consumers increasingly sensitive to pricing and promotions, meaning retailers and brands must find the right balance to drive revenue and preserve customer loyalty, explains Robin Coles, EMEA MD of XCCommerce.
“Its clear consumers expect to see retailers rewarding their loyal customers with discounts and offers, as an act of good faith, in recognition of the difficult financial times. But beware, promotion fatigue remains high and can impact brand loyalty. Retailers need to ensure they are carefully targeting audiences with the right offers, via the most relevant channel and crucially that these offers are consistent across channels.
“To be blunt, this requires a more intelligent and creative approach to promotions. Without upping their game retailers will be unable to convert diverse and dispersed inventories to cash and more importantly profit, nor maintain customer loyalty.”
Download the report: here