As the UK’s economic environment tightens, consumer attitudes towards spending are evolving. Rather than reducing their shopping, people are seeking the satisfaction of a good deal more ardently, ready to spend more for that sense of achievement.
Adapting to Consumer Financial Strategies
During these economically challenging times, retailers must refine their loyalty programs to maintain customer interest. With tighter budgets, consumer shopping habits inevitably shift towards value maximization. Offering regular discounts through reward apps can help retailers secure long-term customer engagement. It’s essential now more than ever for loyalty programs to focus on fostering genuine customer loyalty rather than merely collecting marketing data.
The popularity of promotional codes and discounts remains high, with a Quantum Metric study showing that over 80% of shoppers actively seek these benefits, often increasing their spending to qualify for perks like free shipping. Additionally, the growing preference for Buy Now, Pay Later (BNPL) schemes, especially for pricier items like furniture, suggests a significant shift towards more manageable payment solutions. Retailers not providing BNPL options may face higher cart abandonment rates as consumers prioritize budget management. Nonetheless, it’s important to consider the double-edged sword of BNPL, as it might constrain future spending due to accumulating debts.
Enhancing the Customer Experience
In response to the economic downturn, retailers are prioritizing the customer experience to maintain a competitive edge. Enhanced customer interactions, from personalized browsing to dedicated post-purchase support, are becoming critical. Customizing digital interfaces based on user behavior and offering exclusive access through subscriptions are strategies likely to prevail as budget constraints tighten.
An intensified focus on the mobile shopping experience is also evident. Quantum Metric reports that 43% of consumers prioritize quality alongside price. By optimizing the online shopping journey—making it quicker and more user-friendly—retailers can appeal to quality-conscious consumers.
A heightened focus on the mobile experience.
Finding the ‘best’ price isn’t the only factor budget-conscious customers consider. Research from Quantum Metric found that 43% seek quality. Rising costs are somewhat out of retailers’ control, but they can attract shoppers by improving the quality of customer experience (CX). This can be achieved by ensuring online journeys are fast, smooth and intuitive across browsing, searching, checkout, and post-purchase support.
One way this can be achieved is by using mobile apps to provide a seamless path to purchase, personalised targeting and easy tracking. This will drive loyalty by demonstrating an understanding of customers’ wants and needs, encouraging them to stay in touch even after making a purchase. That said, retailers should develop and enhance their omnichannel retail strategy to cater to all combinations of consumer purchasing preferences, given that some may prefer traditional in-store methods of shopping.
In conclusion, as the cost of living continues to challenge consumers, the retail landscape must adapt swiftly. Want to hear from other digital businesses on how they are moving the needle? Join us at Quantum Metric’s LEAP into London on May 14 at the Outernet to hear from digital leaders on the best practices for efficiency and building the best digital experiences possible.
