Retailer promotions are directly impacting the buying habits of 60% of UK consumers, according to research from RapidCampaign, which found that promotions influence 28% of consumers to spend more, 27% to buy from retailers they would not normally choose and 25% to make purchases they would otherwise not have made.
The survey of 2,011 UK adults shows the nation's appetite for engaging with retailers via promotions is high, with only 8% saying they are not interested in them. It also reveals that gender and age have a role to play in how people respond to promotions.
Over a third (34%) of 18-34 year olds say they make them spend more, compared to only 24% of those who are older, while men are much more likely than women to buy from retailers they do not normally shop with (30% compared to 23% respectively).
Critically, over half (53%) of UK adults look more closely at promotions if their friends have recommended them.
Among the study report's key insights:
- Promotions on social networks are most effective with those aged 18-34 years;
- Those aged 25-34 years are twice as likely to engage with games/interactive promotions than any other age group;
- The big voucher users are 35 years or more;
- Coupons or a voucher codes are most popular among the 35-44 age group;
- Those aged 45+ are much more likely to respond to surveys;
- Women are more active than men in responding to promotions;
- Email is the best way to engage with older generations.
Email is top for Promotions
Email is the overall channel of choice for hearing about promotions, cited by 76% of consumers, and the majority (57%) actively subscribe to email newsletters just to get the latest offers. But the research shows retailers would be wise to integrate social media into their promotion strategy. A third of consumers follow online retailers on social networks to get the latest offers and 46% would share a retailer's promotion on social media channels if it meant getting a better deal.
The influence of social media is greater when targeting those under 35 years old, with almost a third (30%) preferring to hear about promotions via Facebook, compared to 15% overall, and one in ten cited Twitter, compared to only 5% overall.
Voucher Codes are most popular
When asked about the types of promotion that appeal the most, coupons or voucher codes top the list (cited by 74%), followed by instant prize draws (cited by 26%). A significant 87% have actively engaged with a promotion over the last six months, notably surveys (64%), coupons/voucher codes (59%) and competitions (39%).
"As a retailer, engaging your customers and encouraging them to continue down the path to making a purchase decision is crucial. Achieving this is not straightforward, but our research highlights the power of promotions in changing shopper behaviour and giving them a solid reason to buy," said Marko Luhtala, CEO for RapidCampaign. "Well-crafted promotions make the purchase process more engaging and rewarding and can encourage the customer to take the next step toward making a purchase. By understanding your target audience, the channels they use and the promotions that appeal, you can turn your retail business into both a brand they love and a brand they buy."