According to a report by American Express, consumer loyalty is on the decline as cash-strapped shoppers focus on finding the best deals. The study, which surveyed 2,000 UK consumers, revealed that 23% of shoppers are now actively seeking the best deals rather than automatically purchasing from their regular stores. This shift in behavior can be attributed to the cost-of-living crisis, as consumers prioritize factors such as quality, convenience, and value for money.
The report also highlighted that many shoppers feel dissatisfied with their purchases. A significant 62% of UK shoppers believe that there has been a decline in the quality or size of products in recent months, as retailers face challenges in their supply chains. However, despite this dissatisfaction, 47% of consumers prefer to buy fewer items of better quality. Value for money remains a key focus for 77% of shoppers, with 71% actively seeking sale items when making purchases. Additionally, 52% are more inclined to shop with retailers that offer loyalty schemes, as they seek to be rewarded for their custom. In fact, 61% of consumers believe that retailers can do more in terms of rewarding their loyalty.
Moreover, convenience plays a crucial role in the shopping experience, with 60% of shoppers considering it a top priority. This includes accommodating last-minute purchases and offering quick delivery, which is valued by 65% of respondents. Despite the focus on saving money, there is still a demand for big-ticket items and leisure spending. For instance, 42% of shoppers allocate a significant portion of their disposable income to holidays. It is worth noting that 72% of consumers believe it is important to treat themselves, indicating that feel-good purchases remain a priority, particularly during the holiday season.
In response, American Express suggests that retailers have an opportunity to attract and engage customers by personalizing their offerings. This could involve targeted offers or discounts tailored to individual shoppers. Notably, 44% of consumers are willing to share their personal data in exchange for an enhanced shopping experience. By leveraging this data, retailers can better meet the evolving needs and preferences of their customers.
In conclusion, the cost-of-living crisis has resulted in a decline in consumer loyalty, as shoppers prioritize finding the best deals. Quality, convenience, and value for money are key considerations for consumers. To stand out in the market, retailers can differentiate themselves by offering loyalty schemes and personalized incentives. By understanding their customers and adapting their strategies accordingly, retailers have the opportunity to attract and retain loyal shoppers.
Useful links:
– Retail Dive: Consumer Loyalty is on the Decline, Says American Express
– Econsultancy: The Top Five Ways Retailers Can Boost Customer Loyalty
