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Why retailers should offer more promotions
According to the Office of National Statistics, online sales as a share of total retail in the UK reached its peak in 2020. With consumer confidence increasing as high street retailers prepare to reopen their doors, new research from XCCommerce indicates the power that promotions could have as part of a possible ‘bounce back.’Findings from the report reveal that nearly three-quarters (72%) of British shoppers believe that retailers should offer more promotions in times of financial uncertainty. More than half of customers say that it is the most important factor when they shop and a third are researching more offers than they were last year.

Since the initial lockdown, the way customers access promotions from retailers and brands has changed:

  • Over half of all customers (52%) access email or mail coupons
  • A third redeem instore (36%)
  • Promotions received as part of a loyalty programme count for over a quarter (28%)
  • Push notifications from an app (24%)
  • Direct mail (23%)
  • Prices comparison sites and e-newsletters (22%)
  • Promotions via TV ads (21%)
  • A fifth redeem through SMS texts

Popular promotions
Overall, the most popular incentive is money off (78%) followed by access to free delivery (55%) and a cheaper unit price if shoppers buy more than one unit (46%).

Free services, members only discounts, money off future buys and access to exclusive content were cited as the least popular promotions.

The research shows that 44% of people don’t buy additional products based on ‘retailer recommendations’ with a further 46% saying that when retailers over communicate offers, it puts them off buying altogether.

Importantly, the research found that the popularity of certain promotions varies with age. Around70% of 18–24-year-olds look for discounts compared to just 40% of over 65-year-olds.

Building loyalty through promotions
According to the research, 69% of those surveyed said that promotions are the reason why they regularly buy from their favourite retailer. Approximately 60% are loyal to retailers who offer promotions with an additional 62% explaining that they want to receive targeted promotions.

A multi-channel marketing campaign which includes promotions could be key to helping your organisation bounce back from the financial uncertainty of 2020.

Sources / Further Reading
Stats roundup: the impact of Covid-19 on marketing & advertising Econsultancy
Marketing’s importance increasing during the pandemic as share of company spending hits record high Marketing Week
The next normal: Retail M&A and partnerships after COVID-19 McKinsey