Consumers favour 25% discount in exchange for emails
New research from Daemon highlights shifts in consumer behaviour regarding loyalty programmes and the sharing of personal information in exchange for discounts.
The study shows that discounts are a key motivator for consumers, with a significant number of people willing to provide their email address in exchange for a discount. A 25% discount is particularly appealing, with 58% of respondents indicating they would share their email to receive this offer. Meanwhile, only 9% would consider sharing their social media profile for the same benefit.
Generational differences are apparent in the willingness to share personal information. For instance, 30% of Generation Z would provide their phone number for free products, compared to just 13% of Baby Boomers. Address-sharing also varies, with 32% of Millennials willing to share compared to 25% of Generation Z and 19% of Baby Boomers.
Kyle Hauptfleisch, Chief Consulting Officer at Daemon, comments, "These findings highlight that consumers value their personal data differently across generations. Younger shoppers are more open to sharing information like phone numbers for perks, while older generations tend to hold back, even for a reward. Given the generational differences, retailers need to balance perks with trust and tailor incentives to different demographics, based on consumer insights."
The research also explores online grocery shopping trends, noting the substantial increase in online grocery shopping during the pandemic. Although the figure has reduced from its peak, an opportunity still exists for retailers to attract more online shoppers by addressing delivery fees and offering better online deals.
Hauptfleisch says, "While online grocery shopping has swiftly shifted back to pre-pandemic norms, there is a small window of time to capitalise on a precedent set during the pandemic. The potential has been validated and—with some careful consideration to online deals, and creatively addressing delivery costs—there is an opportunity for retailers to differentiate and gain market share."
Loyalty programmes remain an area of interest for consumers despite some scepticism. While 21% report that loyalty cards make them more likely to shop with a retailer, only 11% feel that prices offered through these cards are significantly lower.
Supermarkets have widespread engagement in loyalty programmes, with 82% of British consumers holding a loyalty card and 77% using it regularly. However, participation is not uniform across sectors, with lower engagement seen in home/DIY stores, petrol stations, and salons.
Hauptfleisch adds, "Consumers today are increasingly aware of how loyalty schemes work - and quick to notice when they don't receive the deals they expect. This makes getting loyalty programmes right essential for retailers. What's key here is trust: loyalty programmes act as a bridge between retailers and customers but for that bridge to hold, it must be built on transparency, authenticity and genuine value. While investing in loyalty initiatives can be costly, the greater risk is in neglecting them, leading to a loss of customer confidence."
