Discount-Addicted Consumers Will Wait For the Right Deal Before Making a Purchase
Consumers love a good deal—so much that they’re willing to wait for the right one to come along before making a purchase.
Whether they’re feeling anxious about the economy or simply enjoy the chase, 62 percent of shoppers tend to hold off on buying fashion products until they have the right discount in hand, according to a new study from consulting and research firm 2 Visions.
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The group, which specializes in scaling digitally native, direct-to-consumer brands, surveyed 2,200 U.S. e-commerce shoppers in April, and found that they were twice as likely to purchase an apparel product with a 20 percent discount over a non-discounted alternative. Willingness to buy is directly correlated to the discount amount, the group said. Consumers were 99 percent more likely to make a purchase when offered 50 percent off. The vast majority of clothing shoppers (93.6 percent) will wait for a discount at least occasionally, and nearly one-third only buy when a discount is available.
“In an e-commerce world where global online retail sales are projected to reach a staggering $8.1 trillion by the year 2026, standing out amidst the noise and effectively converting browsers into buyers has never been more challenging,” analysts wrote. “Many online e-commerce businesses are grappling with this very quandary, wrestling to delineate the strategies that once fostered success in brick-and-mortar retail and those that will resonate with today’s digital consumer.”
Discounts offer that hook, the group explained—but apparel shoppers’ motivations are nuanced and complicated by factors like practicality, quality, uniqueness and scarcity. “Pricing and promotion are only pieces of a much larger puzzle,” the report said.
More than two-fifths of respondents said they gravitate to established brands that carry items they deem “essential,” while 22 percent are attracted to emerging brands that offer fresh, creative products. These newcomers to the fashion space often rely on discounts to draw in new audiences. The perception of scarcity can also change a consumer’s behavior. When choosing between two equal products, respondents were 7.6 percent more likely to purchase the one in danger of selling out. If that item is also discounted by 30 percent, those surveyed said they were a whopping 178 percent more likely to hit “buy.”
Physical coupons have been around for decades, but on the web, the coupon code is king. Nearly 58 percent of survey-takers said that online codes yield the best discounts available. Meanwhile, more than 46 percent believe that engaging on a more personal level with brands—through emails and texts—will lead to the greatest cost savings. There are generational differences when it comes to engagement with these channels. Gen Z and millennials are well-versed in the use of coupon codes after growing up browsing and buying online, and young consumers are 54 percent more likely to trust coupon codes than Baby Boomers. Meanwhile, millennials are more likely to keep up with a brand via email or text, believing this to be the best way to score deals.
Not surprisingly, shoppers of all ages are also more likely to buy during shopping holidays, the most popular of which being Black Friday-Cyber Monday. More than half (58 percent) believe that Thanksgiving weekend offers the best deals of the year. Notably, men were 15 percent more likely to believe in the value of these deal days than women. That disparity in perception could be a sign that gender-targeted campaigns could be effective, analysts said, though sensitivity to all audiences is paramount.
“These findings suggest that an e-commerce leader may need to strike a balance” when it comes to where, when, how and to whom to offer discounts—but they’re an essential element of modern commerce. “Without discounting strategies, your business could miss out on over half the market,” analysts wrote. “But too much discounting might threaten your margins and brand value. Finding the right mix will be crucial.”
