The State of Personal Commerce details how price impacts how shoppers perceive and engage with brands, across demographics. The findings reveal that while price has the greatest impact on shopper’s purchase decisions, not everyone is looking for a discount. Only 36% of shoppers say that discounts have the most impact on their purchase from a brand.
This means that the majority of brands that rely on discounts to acquire customers are unnecessarily giving away margin to the 64% of shoppers who are more heavily influenced by other factors. Such as relevant product recommendations (30%), timing of communications (24%) and engaging content (10%).
57% say that price has the greatest impact
According to the study, 57% of shoppers say that price has the greatest impact on their purchase decisions. This is followed by recommendation (20%), necessity (16%) and brand (7%).
Price is a deciding factor for majority of shoppers. However, Bluecore warns retailers against using blanket discounts as it creates one-and-done shoppers. Instead brands need to share individualised offers based on customer preferences. For example, free shipping, exclusive events. Ultimately, this will help to build loyalty and optimize margins.
A product that is worth the price
25% of shoppers say that they are most excited about a purchase when they get a good deal or promotion Meanwhile, even more (30%) say that they are most excited when they purchase a product that is worth the price they paid is most exciting.
Gen Z care most about price
The study also shows that Gen Z shoppers care the most about price. Meanwhile Millennials are influenced by recommendations. Price has the most impact on purchase decisions across all age groups. However, it has the greatest impact on shoppers ages 18-24 (59%). Moreover, among age groups, recommendations have the greatest impact on Millennials’ (ages 25-34) purchase decisions (26%).