Australian consumers are getting lured by discounts more than ever before. But they are less likely than ever to stay loyal to a retailer after making a purchase.
The opposing trends were identified in a report conducted by retail industry association Shop ANZ and consumer insights platform Vypr. It found that 91 per cent of consumers have already switched brands for a better offer, while 79 per cent have visited a different retailer for an offer.
These results are ramping up the pressure on retailers to continue promotional activity. But the report argued that loyalty can still be earned.
“While nine in 10 shoppers have been persuaded to buy a different brand and most have gone elsewhere for an offer, loyalty can no longer be taken for granted,” said Vypr’s chief revenue officer Sam Gilding.
“There’s a temptation to judge a promotion on the volume it moves in the week it runs, but that’s only half the story. The real test is what happens in the weeks afterwards. If a brand is recruiting shoppers heavily and then losing them to the next offer on shelf, it’s funding a cycle rather than building a base.”
The report also found that 42 per cent of shoppers aged 35 to 44 often switch brands because of a promotion. A wider 81 per cent of all respondents said price has become a more important factor when buying a product than it was a year ago.
“The brands getting the most from promotional investment aren’t necessarily the ones spending the most,” added Shop ANZ GM Carla Bridge
“They’re the ones making the same value proposition easy to recognise wherever the shopper meets it. Australian shoppers may find an offer through a website, app, catalogue, email or social media, but it still gets validated at the shelf.”
This article was first published on Inside Retail.
