3 Quick Facts About Customer Expectations On Discounts
A recent Retail Insights 2016 report conducted by Commonwealth Bank uncovered a few important details we thought you need to be aware of this coming shopping season.
A SBS article explains how a growing number of shoppers are becoming increasingly accustomed to discounts, with absolutely no drive to purchase items at full price.
Despite the reluctance of retailers to avoid changing their sales towards Christmas, 46% of shoppers expect larger discounts during the upcoming festive season.
There is always a stigma about meeting expectations. We understand... sometimes, they're just hard.
Here's 3 Quick Facts we want you to expect this sales season!
1) Love at First Discount
Whilst a considerable amount of retailers start their discount at 20% off, a usual trigger of impulse is at a discount of 25%; with 77% of individuals in a study of 1,000 shoppers claiming they are impulse buyers.
With the objective to make the most out of the busiest time of the year, retailers need to find a balance between offering discounts and maintaining profit margins, and, therefore, building a comprehensive and workable strategy from there.
2) Shoppers are becoming unwilling to pay full price
It is a common belief that paying at discount makes paying easy.
Firstly, the process isn't mind-boggling; and, secondly, customers say that price is a single major factor behind their purchases (on and off occasion).
In the study, 46 per cent said they are unwilling to pay full price - ever.
3) Discount can be at your own cost
In some circumstances, discounts can be fatal to your brand image. The CBA report states that 50 per cent of the respondents say that brands lose their allure by offering discounts too often.
Shoppers who consider themselves brand loyalists are at the forefront of these responses. Considered the 'fourth shopping personality', brand loyalists reflect the price they pay with their own perception of themselves.
In this case, the discounted and lower price is not always the most attractive option to shoppers.
There’s no one-size-fits all approach.
Whilst a proportion of customers are enticed by price promotions, brand loyalists are simply turned off by the thought of discounts.
Shopping behaviours are different and unique, and can vary widely amongst many other retailers. Whilst pricing plays an integral role in the purchase decisions of consumers and the ability to drive sales, the bottom line is to re-evaluate your strategy and consider the consumers you are seeking to attract.
For more information on the report, click here!
Be sure to check out our End Of Year Sale with up to 50% off our range of best sellers! Click here to get ahead and prepared this Sales Season!