Not that long ago, or so it seems, I remember standing in a supermarket and seeing the sign ‘buy one get one free’ on a gondola end for the first time - it was from that moment on that I watched with intrigue as the world of discounts became part of everyday shopping.
Consumers are faced with discounts and offers everywhere they turn - in the press, via brand e-shots, in supermarkets and walking down the high street. Now there’s a habitual need for ‘everyday’ discounts, with brands fighting for consumer buy-in and loyalty. It might be discount overload, but I for one am not complaining.
A recent study by KPMG and YouGov intrigued me immensely. As someone who understands the over-50s market extremely well, I was left a little perplexed as to why it was suggested brands rethink their discount strategy with regard to the over-50s when the majority of that demographic would benefit hugely from the offers available in supermarkets - given the current state of pension welfare.
Other research from 2014 by a leading online portal for the over-50s revealed 19% of them had not saved enough money for retirement.
The same research also found 62% of this audience are indeed confused by discount and cashback offers - which supports the KPMG research that they are ‘resistant to discounting’. But while they find supermarket discount deals simple, other online discounts and cashback offers are difficult to understand and find. For the online world, it’s shocking to reveal this market is in fact potentially missing out on £11.4bn of discounts.
The over-50s have many financial pressures and are savvy shoppers in straightforward circumstances such as shopping in supermarkets, where 61% double check multibuy discounts to make sure they really offer better value. So when one is talking about ‘premiumisation’ and ‘differentiation’ for the over-50s, we need to remember this is, indeed, far from the majority. So please, brands and retailers, keep those uncomplicated discounts coming - we need them.
Martin Lock is CEO of Silversurfers.com
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