Americans and Britons are tightening their wallets, with many planning to leverage loyalty programs to save a buck or pound. Check out the data from our latest "Consumer Loyalty Survey” to learn how cost consciousness is poised to shape year-end sales, and what actionable insights retailers need to meet the expectations of budget-conscious shoppers.
With global core inflation expected to remain high through 2024, it’s no wonder that 92% of adults have reduced their spending over the past six months. This holiday season, the downward shopping trend is set to continue as consumers in developed countries such as the United States and the United Kingdom find themselves navigating tighter budgets for gifts compared to previous years.
Cost-conscious consumers are paying attention to how they can save money, with 65% of US and UK shoppers planning to use digital loyalty programs to cut costs. The reasons for virtual shopping cart abandonment derive from increased frugal shopping behaviors: 19.6% of consumers won’t proceed to checkout due to additional shipping costs and 19.5% of them prefer to look for better deals elsewhere before sealing the festive deal.
Significant differences between American and UK consumers
The effect of skyrocketing costs in the United States is a reason why American consumers are twice as likely to say that they won’t during the holiday season compared to Britons. In fact, 17.6% of US shoppers are more likely to abandon carts waiting for products to go on sale than UK consumers, which stands at 11.8%.
At the same time, Britons are slightly more likely to use loyalty programs than Americans, but the difference is slim: 66% to 63%.
And finally, while a staggering 62% of Americans are concerned about privacy and security when shopping online, across the pond only 38% of Britons share the same worry.
Saving money is top of mind across all demographics
While reducing expenses related to holiday shopping is a priority for consumers across all demographics, 71% of shoppers aged 35 to 44 years are the leading age group when it comes to using loyalty programs to save money.
Women also seem more eager than men to use their loyalty accounts, with 71% of them expecting to save money that way, while 58% of men agree to the same strategy. Also, 18% of male consumers are less likely to have a rewards account than women.
Strategies retailers can take to address consumer cost consciousness
Increasing holiday sales may sound challenging given the current economic climate, but there are strategies brands and retailers can use to have a successful holiday season this year.
Not only should they invest in loyalty programs with distinct financial benefits that are easy to use — and to redeem points and rewards — but also personalize these loyalty experiences to consumer preferences. Giving early access to sales and discounts to loyal customers is also a proven strategy.
Plus, as consumers are increasingly more concerned about security and privacy, adding highly secure payment options as an alternative may be a winning tactic to convert more sales and faster.
Implementing these ideas may seem easier said than done… However, with composable commerce behind the scenes, brands and retailers can boost loyalty and reduce cart abandonment in the 2023 holiday season with ease and speed.
Check out all the data of our 2023 holiday survey and the recommendations to turn adversity into an advantage using a composable commerce platform.