13 October 2017, London: When it comes to buying home and kitchen appliances, British consumers admit that the right reward is just as important to them as quality of product. The independent study of 2,000 British adults, commissioned by 360insights, found that 17 percent of consumers said their purchase decision was driven by a promotion, the same amount that identified product quality as the reason for their purchase.
The only factor deemed more important to consumers was product price, with 23 percent of respondents pinpointing cost as the main factor. The report also found that the internet is the most common place for consumers to find out about promotions and incentive programmes attached to home and kitchen appliances. 55 percent of respondents said that they heard about promotions online, as opposed to only 29 percent that had discovered them instore.
John Bird, UK General Manager at 360insights, said: “This research shows that rewards programmes are at the forefront of a consumer’s mind when purchasing home and kitchen appliances. With customers willing to substitute product quality for a reward, brands not offering an incentive programme run a serious risk of losing customers to rival brands that do.”
“This is worrying for brands that are spending considerable budget getting a customer to the point of purchase, just for that customer to switch to a competitor offering a promotion or reward. The brand is, effectively, spending money in creating demand that a rival company ends up benefiting from.”
“It is clear that consumers are wanting to get more for their money. The research shows that consumers main consideration is price. This proves that a good price point in the market combined with a well-thought-out reward programme really does influence the buying decision of the customer.”
“I think the most alarming fact for those missing out, is not just losing out on a sale, but losing out on a customer and an advocate. Frustratingly for those in this position, they have clearly done everything else right to get the customer so close to the point of sale, only for it to be snatched away at the last minute.”
360insights provides the industry-leading channel success platform. The platform empowers brands to create, measure and manage their incentives programs such as sales incentives, rebates and co-op/mdf in real time with 100 percent auditing and fast payout of claims. The Canadian company serves over 100 of the world’s top brands and has expanded to have operations around the USA and in London, UK.