New research from Ello Group, a loyalty and engagement specialist, suggests 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% trust the retailers they shop with currently; while more than two in five (41%) say they are not currently loyal to brands. Close to one in six (14%) have also reduced their spend in some sectors in the last six months due to rising prices.
The research 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%) 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.
Michael Kalli, Managing Director of Ello Group, commented: “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.”
NAM Implications:
- Money counts, after all…
- Pushing trust and loyalty into the background.
- For the foreseeable future.
- Your call re when…
