How Exclusive Discounts for New Customers Can Hurt Loyalty

  • Retailers risk losing two-thirds of their customers with ‘new shopper’ discounts
  • 66% of respondents find exclusive discounts for new customers annoying
  • 53% get frustrated with inconsistent promotions across channels
  • 42% want personalized offers, not generic sales messages
  • 55% are irritated by extended time-sensitive promotions
  • Retailers should use data to customize experiences based on customer preferences

A study by Collinson reveals that retailers risk losing loyal customers if they don’t adapt their sales strategies. Offering exclusive discounts to new shoppers annoys 66% of respondents, while inconsistent promotions across channels frustrate 53%. Personalization and timely communication are key to maintaining customer trust.

Factuality Level: 8
Factuality Justification: The article is based on research conducted by Collinson and provides statistics to support its claims about customer preferences and frustrations with sales periods. It also includes quotes from an expert in the field that provide insightful commentary on the topic. However, it could be improved by providing more context or background information on Collinson and the methodology of the research.
Noise Level: 3
Noise Justification: The article provides relevant information about customer preferences and frustrations related to sales periods and loyalty programs, but it lacks in-depth analysis or actionable insights for retailers. It mainly reports on the findings of a commissioned research without offering much additional context or expert opinion.
Financial Relevance: Yes
Financial Markets Impacted: Retail industry
Financial Rating Justification: The article discusses the importance of personalization and effective communication in sales periods for retailers to retain their loyal customers, which can impact the financial performance of companies within the retail sector.
Presence Of Extreme Event: No
Nature Of Extreme Event: Other
Impact Rating Of The Extreme Event: Minor
Extreme Rating Justification: There is no extreme event mentioned in the article, but it highlights the importance of personalized promotions and communication for retailers to retain loyal customers.

Reported publicly: www.retailsector.co.uk