The lure of exclusive deals and substantial savings is becoming the cost of loyalty for UK retailers as cost conscious consumers seek out the best bargains, RSM UK’s latest Consumer Outlook has revealed.
RSM UK’s survey of 2,000 consumers found over half (51%) are more likely to shop with a retailer that has a loyalty scheme over those that don’t, and this jumps to 60 per cent in households earning £80,000 and above.
The main driver behind this shift in loyalty is to make the most of price reductions (48%), followed by bonus points to spend with the retailer (18%) and bonus points to be spent across a range of retailers (12%). Across the age groups, baby boomers are the most likely to seek price reductions (53%), while Gen Z is the least likely (36%).
“Unlocking exclusive bargains with a retailer has become the latest tool to build brand loyalty and increase market share - all for the small price of sign up, and in some cases a small fee, which is offset by exclusive deals. Not only does a retailer secure repeat custom, but they also benefit from greater access to consumer data to help shape future product offerings and deals,” Jacqui Baker, head of retail at RSM UK, said.
“Supermarkets have led the way giving significant discounts on everyday groceries, but more and more retailers are adopting this strategy with brands, such as Beauty Pie and Fabletics, shaping their whole business models around offering VIP prices to members.
“Despite economic headwinds easing, the hangover of the cost of living crisis and inflated prices, sees consumers still seeking value and this looks set to continue into next year. The brands that get this right will win market share and gain that all important competitive edge.”
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