Shoppers turn to mobile apps for rewards and personalised offers

Faced with soaring inflation, 80 per cent of consumers in the UK now regularly use their smartphones to access stored loyalty cards and coupons while shopping in physical stores, a new survey has shown.

The figure compares to 79 per cent for the US, 73 per cent for France and 72 per cent for Germany, according to the ‘Enhancing Shopper Value in 2023’ report by mobile app experience company Airship.

The study, conducted in partnership with Sapio Research, surveyed more than 11,000 consumers globally, finding that deal-motivated shopping behaviours are common across different markets. Globally, among 10 ways consumers use smartphones while shopping in physical stores, it was their use of the retailer’s app that saw the most year-over-year growth, going from 65 per cent to 74 per cent of respondents.

For UK brick-and-mortar shoppers, using mobile devices to compare prices and access the retailer’s loyalty card and coupons increased the most year-over-year (+8pts), followed by use of the retailer’s app (+7pts).

Three-quarters of British shoppers are likely to visit the retailer’s website while shopping in-store and 72 per cent are likely to use the brand’s app — a narrow gap considering apps must first be downloaded to smartphones. 77 per cent are also likely to compare prices on Amazon or Google before making an in-store purchase.

“Today’s consumers are increasingly turning to mobile apps from their favourite retailers to score deals, gain special access and improve their overall customer experience, particularly while shopping at brick-and-mortar stores,” said Thomas Butta, chief strategy and marketing officer, Airship .

“As marketing budgets are pinched and consumers face economic pressures, retailers need greater agility to create and optimise valuable app experiences that grow customer understanding and reward them individually, making life easier and better for everyone involved.”

Nearly half of UK consumers (47%) say what motivates them most to opt in to receive brand communications on their smartphones are earning immediate discounts or loyalty points, and receiving personalised offers based on their browsing behaviours and past purchases — both of which increased +9pts compared to last year.

Given the current economic climate, consumers have become more willing to share information and connect with brands in exchange for targeted, cost-saving offers and convenient experiences. This represents an opportunity for retailers to expand their understanding of customers to better cater to their needs, preferences and wishes.