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 reveals.
RSM UK’s survey of 2,000 consumers found over half (51 per cent) 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 £80k and above.
The main driver behind this shift in loyalty is to make the most of price reductions (48 per cent), followed by bonus points to spend with the retailer (18 per cent) and bonus points to be spent across a range of retailers (12 per cent). Across the age groups, baby boomers are the most likely to seek price reductions (53 per cent), while Gen Z is the least likely (36 per cent).
The savings can be substantial with Fraser Plus members getting almost a third extra off a Michael Kors tote handbag; and brands such as Beauty Pie offering its bestselling serum at £44 to members, but non-members pay £185 – a whopping 76 per cent discount for loyalty.
Jacqui Baker, head of retail at RSM UK, said: “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.
“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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