United Kindom, July 2023 - To save money, almost 1 in 4 of these consumers turned to an app or online platform
A total of 88% of household goods consumers have changed their spending behaviour since the start of the cost-of-living crisis in an attempt to cut back, according to a Capterra UK survey. In the study, Capterra UK surveyed 1,006 household goods consumers in the UK to understand how inflation has impacted their spending habits.
The study reveals that significant cutbacks have been made on clothes (72%), groceries (66%), and bars & restaurants (66%). In addition, a proportion of consumers have reduced spending on entertainment & culture (62%), electronics (56%), beauty & sanitary products (54%), and domestic appliances (52%).
How are consumers saving money?
Out of the respondents who have changed their spending habits due to the recession, 79% are looking for more discounts. From the same group, the following actions are also being taken to save money:
- 68% are buying cheaper products
- 55% are buying store-brand products more often
- 53% are delaying or stopping big purchases altogether
- 49% are researching more to compare prices and products before making a purchase
- 37% are using coupons
- 38% are participating more in loyalty programs
To help them find these cheaper products, promotions, and other money-saving deals, around a quarter of these respondents have started using the following apps and online platforms since the economic downturn:
- Discount and coupon apps (24%)
- Comparison apps and platforms (24%)
- Second-hand platforms (22%)
- Loyalty program platforms (22%)
Consumers are also reaping the financial benefits of online shopping. The survey found that the main advantages of shopping online over making in-store purchases identified by respondents were:
- Getting the best deals during sales periods (67%)
- Comparing brands/products/retailers to find cheaper products (60%)
- Flexible payments (60%)
- Finding promotions and deals (58%)
70% of UK household consumers use loyalty programs
The results indicate a shift towards a more digital shopping experience to ease the financial strain. If businesses want to attract and retain customers looking for discounts, these online and mobile interactions where consumers first engage with their brand could be essential. This is especially important for supermarkets, as the majority (60%) of respondents said they would cut back on groceries if prices increased by 15%.
That said, some digital adoptions have extended far beyond the recent recession, such as loyalty programs - which are programs that reward repeat customers with added benefits and promotions. A combined total of 70% of household consumers currently use loyalty program apps, having started doing so before or after the economic crisis.
Return customers could be more likely to spend more on your products than new customers, as well as dedicating the time to leave good reviews. Plus, if you already have a loyal customer base, you can reduce marketing costs. Therefore, nurturing customers using a loyalty program is always beneficial, regardless of the economic landscape.
Capterra UK Content Analyst, Eduardo Garcia Rodriguez, reported.
Find out how loyalty programs can help businesses strengthen customer relationships and boost profits here.
About Capterra
Capterra is the #1 destination for organisations to find the right software. Our marketplace spans 95,000+ solutions across 900 software types and offers access to over 2 million verified reviews—helping organisations save time, increase productivity, and accelerate their growth.
Survey Methodology
To collect the data for this report, Capterra conducted an online survey in March 2023 of 1,006 consumers who are in charge of paying home expenses and goods alone or with someone else. Respondents were selected based on the following criteria:
- Resident in the United Kingdom
- Over 18 years old and under 65 years old
- Responsible for paying home expenses and goods either alone, or with a partner, or with people they live with.
Contact Information: Rachael Taylor, Senior Marketing Specialist, rachael.taylor@gartner.com