2014 UK shopper behaviour study
deal
a study by
let’s make a
contents for what it’s worth methodology key findings shopping power purchase influencers desire for deals cashback rebate over instant discount attitude toward cashback rebates driving for deals shopping practices access to deals: social, mobile and online appendix: shopper research by income
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let’s make a deal: 2014 UK shopper behaviour study
for what it’s worth Shopper price sensitivity is changing shopper behaviour. Consumers at all income levels are feeling the pinch of the lagging economy. Their long and worsening struggle has manifested itself in new deal-seeking activities that are laser-focused on paying only what it’s worth and not a penny more.
Across the board, shoppers now seek out the very best prices and are willing to go out of their way to save even a little bit. They research circulars, fliers and the internet before they head out to shop — if they don’t buy online. They drive out of their way to save. Because they are focused on the very best price, the majority are finding that cashback rebates, above all other price promotions, deliver the greatest value and lift their personal spend budget. They want cashback rebates in many shopping categories, including electronics, appliances, technology, furniture and housewares. On the brighter side of heightened price sensitivity, they are still shopping regularly and feel emotionally rewarded when they find significant savings. This sense of reward is connecting them more closely to the shopping experience and the items they purchase than in years past. We are happy to share our findings with you. Please reach out with questions to keep the discussion going. Good shopping!
frugality rules!
Rodney Mason, CMO rodney.mason@parago.com
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methodology
own a smartphone? 73% yes
This first shopper behaviour study was conducted via a national online survey during January 2014 with over 560 respondents representative of the UK (in terms of education, income and gender). They responded to a survey exploring their deal-seeking behaviour: how, why and where? We explored macro-economic sentiments, influence of technology and consumer preference.
employment 32% employed full-time 19% employed part-time 17% unemployed 17% retired 9% student 6% homemaker
annual household income 75% < £49,999 12% £50–99,999 1% £100–199,999 1% > £200,000 11% no report
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gender
household shopping responsibilities 61% primary shopper 34% share shopping duties 5% not really involved
education 47% uni/college grad
47% men
53% women
53% own
3% no answer 47% rent
marital status 0% married 4 25% single 22% in relationship or living w/ partner 13% divorced/separated/widowed
let’s make a deal: 2014 UK shopper behaviour study
32% GCSEs/O Levels 17% vocational/technical
living situation
27% no
2% did not finish school
age 22% 18–29 28% 30–45 18% 46–54 28% 55–70 4% > 71
key findings
price sensitivity is up
73%
across all income levels
5x price is
more influential on purchase decision than any other criteria.
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shoppers want cashback rebates on electronics & appliances.
90%
Deal seekers are the majority in all income levels less than ÂŁ100,000.
64%
of people would scan a barcode for an exclusive rebate.
look online for deals before they go shopping.
81%
of people will drive 5â&#x20AC;&#x201C;10 minutes out of their way for a ÂŁ10 cashback rebate.
79%
think cashback rebates are great savings opportunities.
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shopping power â&#x20AC;&#x153;How do you rate your price sensitivity over the past 12 months?â&#x20AC;?
more sensitive 73% to price unchanged 22% less sensitive 4% to price Numbers may not sum to 100 due to rounding.
73% of shoppers reported being more sensitive to price. 6
letâ&#x20AC;&#x2122;s make a deal: 2014 UK shopper behaviour study
â&#x20AC;&#x153;How do you feel about your purchasing power over the last 12 months?â&#x20AC;?
decreased 44%
Purchasing power continues to see huge declines, leading to greater price sensitivity.
the same 35% increased
17%
unsure
3%
44% feel their purchasing power decreased this past year. a study by parago
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purchase influencers store
13%
brand
7%
price
65% Price is the primary influencer on purchase decision.
Numbers may not sum to 100 due to rounding.
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letâ&#x20AC;&#x2122;s make a deal: 2014 UK shopper behaviour study
loyalty
2%
quality
12%
price reigns annual household income
annual household income
< £49,999
£50,000– £99,999
price 66% brand 8% store 14% quality 9% loyalty 3%
price 64% brand 3% store 12% quality 20% loyalty 0%
Deal seekers are the majority in income levels under £100,000. Numbers may not sum to 100 due to rounding.
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Consumers want the best deal. And they are willing to take an extra step to get it. Marketers can take advantage of cashback rebate redemption to drive higher-value promotions, capture data and gain customer interaction.
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letâ&#x20AC;&#x2122;s make a deal: 2014 UK shopper behaviour study
desire for deals Shoppers are particularly interested in cashback rebates for electronics, appliances, technology, furniture and housewares.
75%
electronics/appliances
56% technology
51%
housewares/furniture
3 out of 4 shoppers want cashback rebates on electronics & appliances.
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cashback rebate over instant discount For the same cost as less attractive coupons or instant discounts, cashback rebates offer the deeper price discounts consumers prefer. “Which would you choose?”
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£75 instant discount 27%
73% £100 rebate
£35 instant discount 27%
73% £50 rebate
£18 instant discount 23%
77% £30 rebate
£12 instant discount 24%
76% £20 rebate
£5 instant discount 24%
76% £10 rebate
£2 instant discount 24%
76% £5 rebate
let’s make a deal: 2014 UK shopper behaviour study
attitude toward rebates “I am interested in seeking out cashback rebates.”
“When I see a £20 cashback rebate, it is attractive to me.”
“Cashback rebates are great savings opportunities.”
“I will buy a product with a high-value cashback rebate.”
72%
79%
79%
62%
66% of shoppers will opt-in during the rebate process for more rebate offers.
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driving for deals More than 3 out of 4 shoppers would drive 5–10 minutes out of their way for a £10 discount on a £50 product. annual household income
< £49,999
78%
£50,000–£99,999
£100,000–£199,999
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let’s make a deal: 2014 UK shopper behaviour study
86%
75%
How far will a consumer go for savings? would drive 5–10 minutes out of their way for £10
81%
would drive 5–10 minutes out of their way for £15
86%
would drive 5–10 minutes out of their way for £20
93%
Most consumers will travel 10–20 minutes (round trip) to get discounts on a £50 product.
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shopping practices People want the best deal, not necessarily the cheapest option. “Before I go shopping, I…”
90% check online for the best deals
89%
75%
48%
look for sales, deals, cashback rebates and best-advertised prices
review circulars and print advertising
ask my personal network for advice
96%
81%
29%
28%
in store
on the computer
using my tablet
using my smartphone
“I shop…”
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let’s make a deal: 2014 UK shopper behaviour study
11%
of UK shoppers purchase on smartphones while in a store.
access to deals: social, mobile & online â&#x20AC;&#x153;Where do you want to receive exclusive cashback rebate offers?â&#x20AC;?
retailer/ manufacturer website
cashback rebate website
retailer mobile app
payments mobile app
53%
47%
33%
32%
17%
17%
12%
7%
4%
Multiple answers allowed.
1 out of 3 of shoppers will participate in a social media contest to receive an exclusive rebate.
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appendix
shopper research For your use, more detailed information by annual household income is included on pages 19â&#x20AC;&#x201C;21. Additional data about consumer preferences for cashback rebates by product category can be found on pages 22 and 23.
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letâ&#x20AC;&#x2122;s make a deal: 2014 UK shopper behaviour study
behaviour by income research for deals and best prices before shopping
look for deals in circulars and print ads
search for deals online before going in-store
use smartphone to check prices while in store/shopping
shop where I can gain loyalty and rewards
almost always sometimes total almost always sometimes total almost always sometimes total almost always sometimes total almost always sometimes total
< £49,999
£50,000– £99,999
42% 47% 89% 21% 56% 77% 46% 44% 90% 8% 20% 28% 42% 49% 91%
37% 56% 93% 20% 66% 86% 49% 47% 96% 12% 31% 43% 37% 59% 96%
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cashback rebate preferences by income < £49,999
£50,000– £99,999
cashback rebates are great savings opportunities
78%
78%
cashback rebates provide a larger cost savings than other promotions
48%
46%
cashback rebates make me feel like I caught an exclusive sale
54%
47%
cashback rebates are easy to redeem nowadays
52%
43%
when researching a product online, a cashback rebate is attractive to me
63%
68%
the ability to submit a cashback rebate on my smartphone is attractive to me
49%
51%
20 let’s make a deal: 2014 UK shopper behaviour study
< £49,999
£50,000– £99,999
participate in social media contest to receive exclusive cashback rebate offer
39%
41%
opt-in during rebate cash back process for future relevant product marketing messages
54%
46%
interested in seeking out products that come with cashback rebates
73%
71%
I will buy a product with a high-value cashback rebate
63%
63%
I search out products with cashback rebates
37%
37%
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category interest in cashback rebates “In which categories are you interested in cashback rebates?”
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< £49,999
£50,000– £99,999
DIY products
34%
29%
clothing
50%
39%
consumer packaged goods
34%
31%
appliances & electronics
77%
76%
entertainment
39%
41%
let’s make a deal: 2014 UK shopper behaviour study
< £49,999
£50,000– £99,999
furniture/housewares
53%
49%
games
28%
29%
office supplies
17%
20%
travel
46%
51%
technology
57%
59%
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parago creates engaging solutions that inspire actions & impact results As the worldâ&#x20AC;&#x2122;s most comprehensive single-source provider for incentives and engagement, we deliver billions in rewards to millions worldwide using our advanced technology. Our relentless focus on innovation drives better results, making us the smart choice. consumer rebates & promotions | employee rewards & recognition | sales & channel management | energy rebates & incentives
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