Have you noticed how people talk about new purchases these days?
“Yeah! I saved $50!”
In today’s retail landscape, online and smartphone shopping have expanded the resources available to consumers who are deciding what to buy and how much to pay.
As a result, the deal is quickly becoming the most important factor for consumers all along the buying journey. In fact, 81% of Americans say that finding a great deal or offer is on their mind throughout the entire shopping journey. It’s even trumping loyalties created by good customer service and brand, according to a new survey from RetailMeNot.
Among consumers surveyed, two-thirds (65%) said a great offer is more important to them than customer service. And almost half (48%) said they’d avoid brands that don’t offer discounts.
For retailers, the power of deals has moved beyond just last-click, and promotions are now useful marketing tools to attract customers and build loyalty throughout each phase of the shopper journey-—from browse to buy.
Deals Drive Engagement Throughout the Sales Funnel
Ninety-four percent of survey respondents said they search for special offers when shopping online. Additionally, nearly half of online shoppers (48%) said they search for deals before they start and often decide what to buy based on the offers they find.
Further, deals can drive increased order value and attract new customers to a store or brand. Two thirds (67%) said they’ve made a purchase they weren’t originally planning on because they found a coupon or discount. If that’s not convincing enough, nearly two-thirds (65%) also said they’d spend more than originally planned to secure a discount.
And the feeling of being flush after a good deal lingers for most shoppers as well. Seventy-eight percent said saving money greatly impacts how positively they feel about a brand. Another one in five (21%) have recommended the brand to friends and family or went back online to write a positive review (16%). Nearly all (93%) agreed they’d choose to shop with an online retailer again if offered good discounts.
Millennials More Frugal Than Older Generations
There’s no doubt that millennials have caught the eye of many brands and may have the biggest impact on retail in the years to come.
At roughly 40% of the US working population, they’re starting to come into their prime. Yet many began their job searches during a recession and are often mindful of their spending habits. As a result, they can be more frugal than older generations.
Half (53%) report that they “always” look for sales or promos before buying online. In fact, nearly 70% said they couldn’t complete a purchase without first searching for a deal. And almost all (88%) will try a new retailer or brand because they’ve found an offer.
It’s clear that “the deal” is now a more critical marketing play than it has ever been before. And the great online shopping game doesn’t appear to be ending anytime soon.
It’s critical for retailers to stack their marketing decks with smart promos at each point in the buying journey to boost sales and build loyalty online.
For more insights on deal-seeking behaviors and today’s shopper, download the full study here.