New research from Ello Group, the loyalty and engagement specialist, has revealed that almost one in five consumers would trust retailers more if when making a purchase, they were offered discounts that could help to offset the cost-of-living struggles.
Consumer trust is at a concerning level, as only eight per cent trust the retailers they shop with currently, while more than two in five (41 per cent) say they are not currently loyal to brands. Close to one in six (14 per cent) have also reduced their spend in the last six months due to rising prices.
The research, which surveyed 1,000 UK consumers, also revealed that discounts and deals now feature in the top three most important factors for consumers when deciding whether to shop with a retailer in the long term, preceded only by price and quality. With more than one in ten (11 per cent) responding that they would remain loyal if retailers could help them make cost savings in other areas, for example eating out, food and drink or travel and leisure.
“In the current cost-conscious climate we are in, consumers are being forced to look at where they’re spending their disposable income and either scale back or look for opportunities to gain additional value with their purchases," said Michael Kalli, managing director, Ello Group. As a result, we are now seeing a rise in the use of marketing tools such as a gift with purchase (GWP) in order to offer consumers additional discounts, deals and freebies for broader categories. These offers can really help to build brand trust, as a signal that a brand is looking for ways to provide cost savings in areas such as travel, or eating out.
“Consumer trust in retailers is currently incredibly unstable, which is having a detrimental impact on loyalty," he concluded
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