While there’s been a long general belief that price has been one of factors as to why some retailers are doing better than others, a new study has revealed customers find it rather frustrating that retailers discount.
According to a new survey by Supercheap Auto, Australians are losing up to $1.7 billion each year on ill-timed purchases by paying full price for items only to find them discounted soon after.
More than half the nation (51 per cent) has been stung by this so called price-cutting up to three times in the past 12 months, with more than one in ten falling victim up to six times a year.
While the average Australian shopper is losing up to $50 on each occasion, close to a quarter lose anywhere from $51 to $200, fuelling shopper frustration at a time when consumer confidence is in decline.
In line with these findings and in an effort to restore customer confidence, Supercheap Auto has unveiled their “Club Plus” program, a loyalty club that compensates customers if they miss out on a sale-priced item.
Supercheap Auto managing director David Ajala said while product discounting remains an inevitable part of the retail cycle, the survey findings highlighted the need to alleviate shopper concerns and offer customers a peace of mind when shopping in store.
“Founded on a unique price promise, the Club Plus program provides a guarantee that if a purchased item goes on sale within two weeks, Supercheap Auto will automatically credit the difference back to the card, which the customer can then spend on any product in store or online,” he said.
Unsurprisingly, the ramifications of post-purchase discounting ranked as one of the biggest frustrations among Australian shoppers – alongside “pushy or unhelpful salespeople”, “not finding the desired item” and “dealing with crowds”.
But while there are plenty of loyalty programs, the research there’s a mixed sentiment towards their value and benefits. Forty-three per cent feel they don’t provide any value at all.