Across various generations, the allure of discounts remains a powerful motivator. According to recent research from digital transformation consultancy Daemon, 61% of Gen Z, 67% of Millennials, and 65% of Baby Boomers cite special discounts as their top reason for shopping with a retailer. However, the willingness to share personal information in exchange for these discounts varies significantly among these groups, indicating a complex relationship between consumer loyalty and privacy.
The findings suggest a nuanced understanding of consumer behavior is essential for retailers aiming to enhance loyalty. While 58% of respondents would readily provide their email address for a 25% discount on their next purchase, only 9% would share their social media profiles for similar benefits. This raises questions about which incentives are effective in bridging the gap between discounts and data privacy.
Interestingly, personal information tied to faster checkout times is not as eagerly offered. Only 25% of consumers would divulge their email for this convenience, while a significant 52% are unwilling to share any personal information for the benefit. Age plays a crucial role in this dynamic: just 10% of consumers would provide their date of birth for a quicker checkout, in contrast to the 24% willing to share it for a discount or free products.
The generational differences are further pronounced when considering the willingness to share contact details for perks. About 30% of Gen Z respondents would provide their phone numbers in exchange for free products, while only 13% of Baby Boomers would consider doing the same. It’s also notable that 32% of Millennials would share their address compared to 25% of Gen Z and only 19% of Baby Boomers.
Kyle Hauptfleisch, Chief Consulting Officer at Daemon, emphasized the importance of understanding these disparities, stating, “These findings highlight that consumers value their personal data differently across generations. Younger shoppers are more open to sharing information like phone numbers for perks, while older generations tend to hold back, even for a reward.” Retailers must tailor their incentives based on these insights, balancing the offer of perks with the imperative of building trust.
The Online Grocery Shopping Shift
The pandemic induced a significant transformation in grocery shopping habits, with online grocery shopping surging during the early months of 2020. At the peak, 17% of consumers reported doing their grocery shopping exclusively online—up from just 4% pre-pandemic. However, this trend appears to have reverted, with the current situation reflecting a mere 5% reliance on online grocery shopping, despite a regional spike in some areas.
Preference for in-store shopping remains dominant, particularly in the North East and North West, where 46% and 42% of consumers shop in-store, respectively. Preferences for both shopping methods reveal different priorities: price, convenience, and product availability rank highest for in-store shoppers, while online consumers prioritize convenience, price, and the delivery experience.
Interestingly, 40% of respondents indicated that lower delivery fees would incentivize them to shop online more frequently, followed by better deals online (34%) and the removal of minimum spend requirements (28%). Hauptfleisch points out, “While online grocery shopping has swiftly shifted back to pre-pandemic norms, there is a small window of time to capitalize on a precedent set during the pandemic.” Retailers need to creatively address delivery costs and online deals to gain an edge and capture market share.
Trust and Loyalty Programs
Consumer hesitation around sharing personal information extends to loyalty programs—crucial for building consumer trust and driving repeat business. While 21% of consumers say loyalty cards increase the likelihood of shopping with a retailer, only 11% believe they receive significantly lower prices through these schemes. This skepticism highlights why retailers must focus on transparency and genuine value in their loyalty initiatives.
The data reveals that supermarkets dominate loyalty program participation in the UK, with 82% of the population holding loyalty cards and 77% actively using them. Other sectors, such as restaurants and cafes, also enjoy solid engagement levels, yet home improvement stores lag, with only 18% of consumers holding loyalty cards, coupled with 57% consistent usage.
Hauptfleisch notes, “What’s key here is trust: loyalty programmes act as a bridge between retailers and customers, but for that bridge to hold, it must be built on transparency, authenticity, and genuine value.” Therefore, while investing in loyalty initiatives can incur significant costs, neglecting them poses a far greater risk of losing customer confidence.
In conclusion, understanding the complex interplay between discounts, data privacy, and consumer behavior is vital for retailers aiming to enhance loyalty. As generational attitudes towards personal information and perks evolve, businesses must adapt and ensure their strategies align with the values and expectations of their diverse customer bases. Only by fostering trust through transparency and offering genuine value can retailers hope to thrive in this competitive landscape.
