Price is the key factor for shoppers as they decide which subscription to choose, a new study suggests.
Digital gift card platform Prezzee questioned 5,000 UK adults via Censuswide about what drives customer loyalty. Asked about subscriptions, price emerged as the main factor when it came to renewing a service. Some 44% of respondents chose the cheapest contract possible when renewing a service – putting this ahead of the lure of a £100 voucher (31%).
Cost is also a key factor when it comes to retail purchases, the study found, coming ahead of product quality. Two thirds (64%) of shoppers said they would buy the cheapest option when deciding what brand to buy. Older shoppers were the most likely to be thrifty, with 70% of over 55s most influenced by price.
The survey also asked consumers what would increase their loyalty. Shoppers opted for cheaper pricing as standard in categories including food, technology and fashion. Conversely, increasing prices was a strong factor in reducing loyalty to a product, with two fifths (38%) considering other brands when prices increase.
James Malia, European president and head of growth at Prezzee, says: “In our current economic climate, price remains the top consideration for consumers, very closely followed by the quality of a product or service. Many will see these as opposing forces, as consumers expect higher quality to come with a higher price point. The cost of living crisis has clearly altered these expectations as consumers are looking for both.”
The study comes soon after a study found customer loyalty was now a priority for retailers – with 87% of respondents investing in customer loyalty and sales growth.
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