Incentives can drive retail customer engagement

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By: Wise Marketer Staff |

Posted on January 3, 2011

Incentives can drive retail customer engagement

Marketers are currently failing to engage with customers in-store, with 46% of UK consumers admitting to never giving out their contact details - or even giving fake contact details - to avoid being contacted in future, according to recent research by YouGov for Callcredit Information Group.

However, almost two thirds (64%) said they would be more likely to give their correct contact details for future marketing communications if they were signed up to the store's loyalty programme (35%), or offered a small financial incentive like a discount off a future purchase (38%).

Moreover, 15% said that they would be happy to give out their contact details if they were informed about relevant promotions, products and services in future; given the chance to be part of an exclusive store club (11%); or if they were simply asked by a friendly and approachable person (9%).

The 'flirt factor' has the biggest impact on men and young people, as 10% of men and 17% of 18-24 year olds would give out their details if they were asked for them by someone friendly and approachable in store.

The research also found that at least one in eight (12%) online consumers in the UK planned to shop using their mobile phone during the 2010 Christmas season, to try to avoid the rush in retail stores. The majority of these respondents were classified as 'Accomplished Singles' by Callcredit's CAMEO Lifestyle consumer classification. These are a highly affluent, upwardly mobile, energetic and ambitious group of singles, typically aged under 45.

Of those people who have mobile phones that allow them to shop online, 15% said they intended to purchase clothing, footwear or accessories for Christmas, while 12% said they would purchase electrical goods (not including mobile phones).

However, the reality is that, while mobile shopping is appealing to some demographics, technology is a barrier as 41% said they do not have the capacity to do so on their phones.

Perhaps more surprisingly, 78% of people who do not purchase items on their phone but who have the capability to do so said they would not like to do so in future. This included 58% whose main reason is that they prefer to use other methods (such as going in-store or shopping using their computer), while 15% have concerns about safety and security issues.

According to Callcredit's CAMEO Personal Finance segmentation, the majority of respondents that have never made a purchase via their mobile phones are classed as 'Sophisticated Savers,' while consumers that have made a purchase via their phone are likely to be 'Seldom Savers'.

"The results suggest that retailers are missing an opportunity, as customers are most engaged with a brand at the point of purchase in-store," explained Kevin Telford, director for Callcredit Information Group. "While consumers have to give out contact details to make a purchase online, they are often more reluctant to do so in-store - but they will do so if they are offered the right incentive."

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