– UK consumers’ main driver when making a purchase is price, with older consumers being the thriftiest. Two-thirds (64 per cent) of shoppers purchase the cheapest product when deciding what brand to buy, with 70 per cent of over 55s most influenced by price.
The quality of the item is the second most influential factor, followed by earning points and cashback when choosing which store to buy from. These findings come from new research from digital gifting platform, Prezzee, which surveyed 5,000 consumers in the UK to establish what drives loyalty when shopping.
The survey asked consumers what would increase their loyalty and the categories where customers were most influenced by cheaper standard pricing were food, technology and fashion.
Increasing prices was a strong factor in reducing loyalty to a product, with two-fifths (38 per cent) considering other brands when prices increase.
Subscriptions are also heavily influenced by price, as cost was the main factor with 44 per cent of respondents choosing the cheapest contract possible when renewing a service, more important than receiving a £100 voucher (31 per cent).
James Malia, European president and head of growth at Prezzee commented:
“In our current economic climate, price remains the top consideration for consumers, very closely followed by the quality of a product or service. Many will see these as opposing forces, as consumers expect higher quality to come with a higher price point. The cost of living crisis has clearly altered these expectations as consumers are looking for both.
“This offers a significant opportunity for brands that offer strategic, rewards-based loyalty programmes which can be seen to offset some of the cost consumers are allocating to their purchases. Offering a genuine ‘thank you’ in the form of money in their hand, including digital gift cards like Prezzee, resonates more deeply than a discount. If price and quality are similar, an engaging loyalty solution can set your brand above the competition.”
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