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Upside’s Consumer Spend Report highlighted the rise of the uncommitted customer, a shopper who prioritizes the value they receive from each transaction above loyalty to any particular retailer or brand.
On a recent live webinar, Upside’s retail experts dove into this trend and the other trends most evident in the state of shopping. Take a look at the highlights here, then head to watch the full conversation.
“Despite all the economic good news, consumers don’t necessarily see any of that. We still have a majority of people saying the economy has gotten worse.”
Indeed, there’s a misalignment between the true performance of the economy and its perceived performance by the average consumer. Although inflation has cooled and the Fed has begun decreasing interest rates, many consumers still feel uncertain about the way things are headed.
Results from a recent Upside survey show that no matter the respondent’s age, household size, or household income, the majority of respondents feel that the economy is much worse in 2024 than it was in 2023.
What does that mean for retailers? First, it helps for them to understand that many consumers are still in a “save and conserve” mindset, despite positive economic indicators. Many shoppers are making careful decisions about what they purchase and where they buy it from — which leads right into our next quote.
“Being uncommitted to a single brand is becoming the new norm.”
Uncommitted shopping behavior is not necessarily a new concept in and of itself. Shoppers have been picking and choosing items from certain retailers for years — in fact, maybe you’ve done that yourself. Think about it: produce from your local grocer, snacks or ice cream from a big-box retailer, paper towels or cleaning products from a wholesale club? That’s uncommitted behavior.
The reason that uncommitted shoppers are so important today is that they’re now the majority — as highlighted above, uncommitted behavior is now the norm rather than the exception. This shift is a reflection of deep, structural changes in how consumers engage with brands.
“Loyalty programs, third-party marketplaces, they are, frankly, becoming table stakes. You need to offer something competitors can't replicate.”
In response to cross-shopping, retailers often turn to loyalty programming to differentiate themselves. That’s a smart idea, because the vast majority of consumers love loyalty and claim to consider loyalty (or its absence) when making decisions about where to shop.
But there is a gap between loyalty perceptions and the number of customers who actually use the benefits of loyalty programs. With nearly every retailer having a loyalty program, each of which has a similar set of benefits, it becomes harder and harder to use loyalty as a tool for differentiation.
Whether it’s personalized promotions, exclusive products, or standout in-store experiences, retailers must find ways to differentiate themselves that competitors can’t copy.
Get the full scoop on the five trends defining shopping behavior today.
