New research from Ello Group, a loyalty and engagement specialist, has revealed that almost 1 in 5 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 8 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 industries, such as fashion, 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. 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,” comments Michael Kalli, managing director, Ello Group.
LookFantastic, Europe’s leading online beauty retailer owned by The Hut Group, recently responded to growing demand for cost savings across food and drink-led offers by incorporating Ello Group’s tastecard product as a gift with purchase. Despite offering a GWP for a number of years, the need to diversify the gift options grew over time in line with the preferences of its significant customer base. Now, with the incorporation of tastecard, the beauty retailer offers consumers a gift that facilitates 1,000s of discounts on food and drink across the UK.
On the collaboration, Jamie Mounsey of The Hut Group’s commercial division shared: “Introducing tastecard to our portfolio of gifts was an easy decision because of the breadth of its offering and the strength of its discounts which is particularly key for our customers in today’s economic climate. Since launching, we have seen incremental increases in interaction with the redemption email and above-average conversion rates. This shows us that the offer is resonating particularly well with consumers, and that food and drink-related GWPs remain popular despite overall squeezed budgets. We expect this benefit to become even more prevalent once tastecard’s expansion into our social campaigns occurs too, and we will certainly be exploring further food and drink offers to incorporate in the future to continue driving customer response and loyalty.”
Michael concluded: “Consumer trust in retailers is currently incredibly unstable, which is having a detrimental impact on loyalty. However, the response that LookFantastic has seen from consumers as a result of the tastecard offering demonstrates that engagement can still be driven amid this difficult climate if brands are willing to explore options to provide added value for consumers,” concludes Michael.
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