Consumers want ‘more bang for their buck’ as business landscape intensifies

Bargain hunting and rampant discounting have become the norm in a tough economy, according to new research.

Today, consumers want instant rewards, with 42 per cent preferring to receive offers while they shop, and more than a third of consumers (37 per cent) happy to receive general offers rather than rewards tailored to their shopping habits.

The study, undertaken by The Logic Group, shows sustained economic uncertainty and weakening business confidence since 2008 has created the ‘promiscuous consumer’, who displays no obvious loyalty, instead choosing to shop around for the best bargains and, quite often, holding multiple loyalty scheme memberships.

The uptake of additional loyalty schemes among existing members has been strongest for online voucher discount organisations (consumers are members of almost two schemes on average), although satisfaction with these types of schemes is among the lowest.

Jon Worley, director of customer interactions at The Logic Group says, ‘The definition of customer loyalty has undergone a fundamental change in the past four years of economic uncertainty, and the internet has necessitated a rethink of customer engagement strategies.

‘Promiscuity on part of the consumer is a reflection of the perceived value of their interaction with merchants and brands. Consumers want more bang for their buck.’

In 2009, more than 50 per cent of the public was not an online customer of any business. Today however, online shopping is more popular in the UK than in any other country in the world, with British consumers now spending an average of $1,718 (£1,083) a year, according to data from Ofcom.

One in six Britons admit to openly using their mobile phone to check product details, prices and reviews while shopping in-store, an activity known as ‘showrooming’.

A further ten per cent of consumers have requested loyalty scheme offers on their mobile phones, and more than one in ten have received them on their devices.

2012 also saw a new breed of social consumers, willing to explore brand engagement via social channels. More than a fifth (22 per cent) of Britons visited the Facebook site of a company to which they are loyal, while only 8 per cent have followed a company they feel loyal to on Twitter.

Ben Lobel

Ben Lobel

Ben Lobel was the editor of from 2010 to 2018. He specialises in writing for start-up and scale-up companies in the areas of finance, marketing and HR.

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Customer Loyalty

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