New research from American Express reveals British shoppers are increasingly seeking better value for money, quality, and convenience during the current economic climate, offering retailers new opportunities to engage customers and drive loyalty.
According to the survey of 2,000 UK consumers, over three quarters (77%) of Britons are increasingly focused on value for money, with 71% saying they proactively look for sale items when shopping. It’s also clear that customers are looking for more support from businesses on price, with almost seven in 10 (68%) believing that retailers could do more to help counter rising prices.
The research also points to signs that the retail environment is set to become even more competitive, as almost a quarter of shoppers (23%) are seeking out the best deals rather than sticking with their usual retailers. Additionally, over half (52%) of consumers say they are more likely to shop with a retailer that has a loyalty scheme, and 61% believe retailers can do more when it comes to rewarding them for their custom; indicating loyalty schemes are becoming a key differentiator for consumers.
Unsurprisingly, six in 10 (60%) respondents say a convenient shopping experience remains a high priority when spending with a retailer. But with two thirds (65%) valuing businesses that accommodate last-minute purchases and quick delivery, retailers need to keep a positive customer experience front of mind to stay ahead of competitors.
Against a backdrop of escalating cost-of-living pressures, the quality of products is also being interrogated; 62% of UK shoppers believe they have seen a dip in the quality or size of products in the last few months as retailers grapple with supply chain challenges, with almost half (47%) citing they prefer to buy fewer, better-quality items.
Daniel Edelman, Vice President & UK General Manager, Merchant Services at American Express, said: “People’s shopping priorities are understandably changing rapidly in line with the times, with a bigger focus on value and closer eye on quality. It’s important that retailers, as always, stay close to their customers and react quickly in response to their changing needs.
“Offering a winning customer experience both in-store or online should also be front of mind as consumers continue to prioritise convenience and ease when they shop.These can be real points of differentiation in a more competitive market and something American Express is focused on with our support of retailers large and small. Finding ways to go the extra mile for their customers through loyalty or reward schemes, for example, can help drive repeat custom and keep their business ahead of their competitors.”
Additional findings include:
Appetite among shoppers remains for big ticket items and leisure spending, with 42% who are still spending in this area saying they are dedicating the largest amount of their disposable income to holidays. And with 72% of consumers saying it remains important to treat themselves, it is clear shoppers are still prioritising ‘feel-good’ purchases
There’s an opportunity for retailers to find new ways to attract and engage customers and personalise their offer, potentially with targeted offers or discounts, especially as over four in ten (44%) shoppers say they are willing to share their personal data for a better shopping experience.
