BUT RECESSION-BORN BARGAIN HUNTING TACTICS HERE TO STAY
22 April 2015 – UK shoppers have started to loosen their purse strings and are enjoying dining out and spending on breaks abroad again, according to new research from data-driven marketing and analytics company Aimia.
The findings from Aimia’s Loyalty Lens follow reports from ONS* that UK household finances are improving, with disposable income increasing by 1.9% last year. As many people start to feel better off, more people are choosing to socialise out of home and they are treating themselves to more holidays:
- The number of people deciding to take fewer overseas holidays and city breaks to save money has nearly halved over three years. In 2012, 47% of people adopted this tactic, whereas today it is just 23%;
- Fewer people are opting to entertain at home instead of going out:
- Only three in ten (31%) people are now staying in with friends and family rather than eating out, compared to nearly half (48%) of people in 2014 and 39% in 2012.
- Fewer people are choosing to watch DVDs at home rather than going to the cinema, compared to last year (43% in 2015, down from 51% in 2014).
Aimia has been tracking UK consumer spending behaviour since 2012.
While more people have started to enjoy their disposable income, the data reveals how money saving strategies are here to stay. Four in five (79%) people say they are always on the lookout for a bargain, and this mindset is fast becoming part of the DNA of UK shopping habits.
Charlie Humphreys, Managing Director, Business Development EMEA at Aimia, said: “The improving picture for household finances is good news for UK retailers. But while post-recession shoppers may have more disposable income, they are also more difficult to please. They are expert bargain hunters and retailers will need to work harder than ever to win their custom”.
Many shoppers are employing a combination of tactics to make sure they get the most for their money:
- When asked how people use the loyalty points they collect, more people (43%) said they are using them to pay for daily essentials (rather than treats), up from 38% of people doing this a year ago;
- A third (34%) visit shops and then compare prices of competitors online (consistent with 32% in 2014);
- Nearly a third (30%) seek impartial advice from websites such as Which? and MoneySavingExpert to make sure they are getting the best deal (consistent with 28% in 2014).
Charlie Humphreys, Managing Director, Business Development EMEA at Aimia, continued: “Price will always remain an important factor, but retailers should be wary of employing short term tactics to get feet through the door. The overall customer experience is critical for winning repeat business.
“Those that focus on fostering long term relationships based on their customers’ preferences will be those who succeed. If a customer knows they will receive personalised offers on items they want and need, this is a far more powerful proposition than one-off, untailored deals”.
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Notes to editors
*ONS figures show UK economic well-being is improving, and Real Household Disposable Income (RHDI) per head increased by 1.9% last year*. http://www.bbc.co.uk/news/business-32122804
Loyalty Lens research conducted by Research Now:
- 13 March 2015 among 2,011 UK adult respondents
- 10 March 2014 among 2,064 UK adult respondents
Additional research conducted by Aimia in 2012:
- 25 May 2012, among 2,000 UK adult respondents
Aimia Inc. (TSX:AIM) is a data-driven marketing and analytics company. We provide our clients with the customer insights they need to make smarter business decisions and build relevant, rewarding and long-term one-to-one relationships, evolving the value exchange to the mutual benefit of both our clients and consumers.
With close to 4,000 employees in 20 countries, Aimia partners with groups of companies (coalitions) and individual companies to help generate, collect and analyze customer data and build actionable insights.
We do this through our own coalition loyalty programs such as Aeroplan in Canada and Nectar in the UK, and through provision of loyalty strategy, program development, implementation and management services underpinned by leading products and technology platforms such as the Aimia Loyalty Platform and SmartButton, and through analytics and insights offerings, including Intelligent Shopper Solutions. In other markets, we own stakes in loyalty programs, such as Club Premier in Mexico, Air Miles Middle East and Think Big, a partnership with Air Asia and Tune Group. Our clients are diverse, and we have industry-leading expertise in the fast-moving consumer goods, retail, financial services, and travel and airline industries globally to deliver against their unique needs.
For a full list of our partnerships and investments, and more information about Aimia, visit www.aimia.com.