Uncertainty, coupled with tough economic conditions, are driving consumers directly to brands that offer the best coupons, discounts and deals. As people adjust to new variables in their lives, they are shopping smarter and becoming increasingly price sensitive.
According to recent Vericast data, a majority of consumers (60%) are looking for more coupons, discounts and deals to offset the higher prices they are experiencing across shopping categories including apparel, groceries and dining. In fact, 45% said they are switching brands to save money and 53% are shopping at multiple stores to find the best price.
The biggest takeaway for retailers? Consumers are trading brand loyalty for the best value – and they expect deals to meet them where they are. Of almost 2,000 respondents, 40% said they feel more positively toward a brand or store that offers discounts or coupons. So as we head into the 2021 holiday season, offering budget-friendly options will be a smart strategy to turn shoppers into buyers. Brands can stand out from the competition by delivering creative discounts that are personalized and delivered via the individuals’ preferred channel.
Four strategies to connect with value-hungry shoppers
Although the economy is starting to recover, it will take time for consumers to feel comfortable enough to shop based on other factors. For brands looking to reconnect now with consumers who remain highly price sensitive, here are four effective strategies:
Compelling offers go a long way: Higher prices are driving more consumers to proactively seek value and use more coupons, discounts and deals than last year. Marketers must take this into account and understand that a compelling offer may make the difference in a buying decision for a consumer with a tight budget. More than half (57%) say coupons, discounts or deals have a high or medium influence on their purchasing decisions.
Omnichannel is key: Today’s shoppers are using more channels than ever to discover value. They want coupons, discounts or deals delivered through multiple channels including direct mail, online and digital paperless/print at home. Marketers must rebalance their approach to get deals in front of the right audience, not just the deal-savvy.
Secure repeat customers: As noted, 40% of consumers feel more positively toward brands or stores that offer discounts or coupons, 30% will be more loyal to that brand or store, and 39% are more likely to make a repeat purchase. The increased demand for value presents an opportunity for marketers to rapidly build loyalty, repeat business and customer recommendations.
Cater to how and where people shop: Current coupon distribution trends aren’t in sync with consumer behavior. Marketers should consistently reevaluate and rebalance their approach based on ever-shifting consumer wants and needs – especially among their loyalty base in order to retain those customers. Thirty-three percent of consumers want offers that are exclusive and reward them for their loyalty, and 25% want offers tailored to their timing – when they’re “in the market” to make a purchase.
Take advantage of loyalty opportunity
Retailers must recognize this moment as a significant opportunity to capture and build brand loyalty among a new set of shoppers. Consumers will remember the brands that delivered on value when they needed it most and will be more likely to support those brands in the future.
As we approach the holiday season, brands must keep value top of mind and deliver it to consumers wherever they are.