savi, the UK’s premier coupon and voucher solutions provider, recently conducted a follow-up to our 2023 survey, shedding light on the impact of the cost of living on consumers and their shopping habits. This research unveils valuable insights into the preferred shopping methods, loyalty program attitudes, and cost-saving promotions preferences among consumers.

Key findings from our research include:

• • Nearly 2 out of 5 (39%) consumers are now favoring in-store shopping over online.

• • 64% of shoppers indicate increased spending on groceries compared to the previous year.

• • Almost 3 out of 4 (72%) respondents express willingness to try a new product or brand if offered a coupon.

• • Over 3 out of 5 shoppers (62%) would consider switching supermarkets to redeem a coupon.

• • More than 60% of individuals aged 18-34 show a preference for mobile coupons over paper ones.

• • Shoppers demonstrate interest in coupons across various categories, with food products ranking as the most sought-after.

Our Top Ten grocery retailers

Regarding supermarket preferences, there have been notable changes compared to last year’s survey. Discounters Aldi and Lidl both now occupy spots in the top 5, while Iceland has been replaced in the top 10 by the Co-op.

Our findings also reveal that nearly four in ten (39%) consumers primarily do all or almost all of their shopping in-store, while only 24% predominantly shop for groceries online. Merely one in five (19%) individuals evenly split their grocery shopping between online and in-store. These results indicate a resurgence in in-store shopping, returning to pre-pandemic levels, and remaining the preferred method for most shoppers compared to online shopping.

The cost-of-living effect

Whilst inflation rates remain high we found that the majority of shoppers are spending more on groceries compared to last year, despite them purchasing the same volume of items.

Where are shoppers cutting back most?

As expected during challenging times, shoppers are mostly cutting back on luxuries such as eating out, clothing and leisure pursuits. Brands can still deliver value to their customers in the form of partner rewards for food delivery or streaming apps.

The rising demand for coupons

When we surveyed 2,000 shoppers about their perceptions of coupons, we discovered that they feel confident and content when using them. Additionally, they anticipate receiving coupons on various occasions.

How likely are shoppers encouraged to try a new brand with coupons?

savi has long recognized that coupons are one of the best methods to entice customers to experiment with new products or switch brands, and this holds especially true in the current climate. Our recent findings demonstrate that 72% of shoppers are now more inclined to try a new product or brand with a coupon, a significant increase from 61% in our 2022 survey. Conversely, the proportion of shoppers reluctant to try a brand with a new coupon has decreased from 8% to 4%.

We also discovered that a significant portion of shoppers are also influenced by a supermarket’s coupon policy, with a notable percentage open to the idea of switching to a competitor if their preferred store doesn’t accept coupons.

• • 19% of respondents would definitely consider switching to a different supermarket if their preferred one refused to accept a coupon.

• • 43% of respondents said they might consider switching in such a scenario.

• • 10% of respondents stated that they would never consider switching.

We also asked how long they had been actively seeking coupons and discovered that 43% had been using them for longer than 3 years, proving how fundamental coupons are to shoppers. Compared with 2022 most of the shoppers had been using coupons for several years.

Mobile coupons are key

Our research uncovered a growing preference for mobile coupons, especially among the younger demographic. However, when queried about their preference between mobile and paper coupons, it was primarily the older generation who showed less enthusiasm towards mobile options. As savi has shifted towards mobile coupons to adapt to changing retail environments and shopper behaviour we wanted to know what encourages shoppers to use mobile coupons most?

Conclusion

Our findings affirm that our shift towards digital clearing and mobile coupons resonates with today’s shoppers, who seek better value delivered conveniently. While we’ve highlighted just a few insights from our survey, combined with savi’s extensive 50+ years of coupon experience, it’s evident that we are industry experts. Processing millions of coupons annually equips us with comprehensive data and insights into coupon campaign performance across all categories, retailers, channels, and brands. 

For a copy of the full report or for more information about our innovative coupon campaigns, please contact us here.