Brands who offer customer incentives can cut cost of acquisition and retention in the year ahead

UK consumers say that incentives will be key to securing their loyalty and custom through the  cost-of-living crisis, according to new research from Edenred.

The study, which asked 2,000 consumers about how they were changing their spending  behaviour in the face of the cost-of-living crisis, found incentives were more important than a  range of factors including reputation or customer service in attracting customer spend and  second only to price.

With the majority of consumers (54%) having already made changes to their lifestyle to cope  with the cost-of-living crisis, only 15% of consumers say their household budget can  accommodate further prices increases and 42% say they would need to borrow more to  deal with the cost-of-living crisis.

Against this backdrop, consumers are adopting a range of value-seeking behaviours as they  shop, with one-in-four consumers (26%) looking for cashback or incentives when shopping  and just under a third (29%) said they were using money-off vouchers or coupons to make  their household budget go further. Around a third (32%) are shopping around for the best  prices.

Close to four-in-ten consumers (38%) say they are more likely to recommend a brand that  offers incentives while a quarter (25%) say they will be more loyal to an existing brand.  Incentives will also encourage people to switch (35%) or trial a new brand (30%).

The most attractive incentives that brands can offer are rewards for loyalty (37%) followed by  cashback (35%) or vouchers (31%). A significant majority also value the opportunity to share  rewards with friends and family (29%) or with a good cause (23%).

Andy Philpott, Marketing Director at Edenred said:

“While these are tough times to compete for a share of consumer spending, our research  shows that brands can attract and retain value-seeking customers and avoid a race to the  bottom on price by using incentives.

Whether it is by reducing customer churn, rewarding loyalty or winning new customers  through refer-a-friend schemes, incentives offer every brand the opportunity to minimise the  impact of the cost-of-living crisis without having to resort to price competition.

By offering customers the opportunity to give to causes they believe in or simply the ability to  share reward with friends and family, brands can also build preference and differentiation through the choice of incentives on offer.

As the battle for customers intensifies, it will be the sales and marketing teams who can best  deploy incentives who are likely to attract and retain customers through the cost-of-living  crisis.”

To download the full report, “The battle for new customers in the cost-of-living crisis”, please  visit the Edenred website.

About Edenred

Edenred, the everyday companion for people at work, is a leading digital platform for services and  payments which connects over 50 million users and 2 million partner merchants in 45 countries via  approximately 900,000 corporate clients.

Edenred offers specific-purpose payment solutions for food (such as meal benefits), incentives (such as  gift cards, employee engagement platforms), mobility (such as multi-energy, maintenance, toll, parking  and commuter solutions) and corporate payments (such as virtual cards).

True to the Group’s purpose, “Enrich connections. For good.”, these solutions enhance users’ well-being  and purchasing power. They improve companies’ attractiveness and efficiency, and vitalize the  employment market and the local economy. They also foster access to healthier food, more  environmentally friendly products and softer mobility.

Edenred’s 10,000 employees are committed to making the world of work a connected ecosystem that  is safer, more efficient and more responsible every day.

In 2021, thanks to its global technology assets, the Group managed close to €30 billion in business volume,  primarily carried out via mobile applications, online platforms and cards.

Edenred is listed on the Euronext Paris stock exchange and included in the following indices: CAC Next 20,  CAC Large 60, Euronext 100, FTSE4Good and MSCI Europe.

The logos and other trademarks mentioned and featured in this press release are registered trademarks of  Edenred S.E., its subsidiaries or third parties. They may not be used for commercial purposes without prior written  consent from their owners.