A 25% discount has been proven to be very effective on consumers’ next purchases

Across generations, discounts are a common theme. 61% of GenZ, 67% of Millennials, and 65% of Baby Boomers say special discounts are the top reason they would end up buying from a retailer.

Apart from this, there are varying degrees of willingness to share personal information to get these benefits.

This is according to new data from digital transformation company Daemon, which reveals that while discounts are still the primary motivator for consumers, willingness to share information and changes in the retail environment are re-creating consumer loyalty.

58% will provide their email address to receive a 25% discount on their next purchase, making it the most popular incentive. However, only one in ten (9%) would share their social media profile with the same offer. When it comes to quick checkout times, only a quarter (25%) would give their email address for this, but 52% would not give up any personal information for this benefit. Furthermore, only 10% would be willing to give up their date of birth for a quick checkout but 24% would be willing to give up this information for a discount or free products.

Generational differences also highlight the issue of privacy vs benefits. In order to receive free products, 30% of GenZ will share their phone numbers but only 13% of Baby Boomers would do the same. In comparison, 32% of Millennials will share their address compared to 25% of GenZ and only 19% of Baby Boomers. Similarly, for faster access to sales, 44% of GenZ and 41% of millennials would share their email address but only 29% of Baby Boomers would do the same.

Kyle Hauptfleisch, chief executive of consultancy, Daemon, said: “These findings highlight that consumers value their information differently across generations. Younger consumers are more open to sharing information such as phone numbers for benefits, while older generations tend to hold back, even for a reward. Given the differences that exist, marketers need to balance profitability and trust and tailor incentives to different demographics, based on consumer insights.”

Online food opportunity

The pandemic caused a major shift in online grocery shopping habits between March 2020 and summer 2021. During that time, 17% bought groceries online only, compared to 4% before the pandemic. This figure is now down to 5%, with a slight regional rise to 8% in areas such as the East of England, Yorkshire & Humberside and the West Midlands.

Meanwhile, in-store shopping continues to dominate, with 36% of consumers currently shopping this way. This figure rises to 46% in the North East, and 42% in the North West and Wales.

When choosing where to shop for groceries, price is the most important (59%), followed by convenience (56%), product availability (53%). However online, usability ranks as the most important (49%), followed by value and delivery experience (46%).

Lower delivery costs would make 40% more likely to buy groceries online regularly, followed by better online deals (34%) and the removal of a minimum spend requirement (28%).

Hauptfleisch said: “While online grocery shopping has quickly returned to pre-pandemic patterns, there is little time to cash in on the precedent set during the crisis. Power is guaranteed and – by carefully considering online deals, and handling delivery costs creatively – there is an opportunity for retailers to differentiate and gain market share. ”

Honesty is key to building consumer trust

Despite growing skepticism about sharing personal information, loyalty programs remain critical to sales success – but the trust gap persists. Although 21% of consumers say that loyalty cards enable them to shop with a retailer, one in ten (11%) believe that the prices offered by loyalty cards are too low. This highlights consumer skepticism towards loyalty programs, despite their importance in driving consumer retention.

Supermarkets, in particular, have a strong base in participating in loyalty schemes, with 82% of Brits holding a loyalty card and 77% using it every time they shop. Restaurants and fine dining are next while sectors such as home/DIY shops lag behind, with only 18% holding a loyalty card and 57% using the card regularly. Gas stations and salons see even lower engagement, suggesting growth opportunities in these areas.

Hauptfleisch said: “Consumers today are becoming increasingly aware of how loyalty programs work – and are quick to notice when they’re not getting the deals they’re expecting. This makes finding loyalty programs very important for retailers. The key here is trust: loyalty programs act as a bridge between sellers and customers but for that bridge to last, it must be built on transparency, authenticity and real value. While investing in loyalty programs can be expensive, the biggest risk is neglecting them, which leads to a loss of customer confidence.”

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