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Statistics South Africa has announced the great news that inflation has fallen to 3,8%, the lowest level since March 2021. However, this does not necessarily mean immediate price reductions or amazing Black Friday specials.
OneDayOnly says their data shows that South Africans are consistently looking for specials, loyalty programmes, and discounts to help make their money stretch further.
“According to a global retail study, promotions can save shoppers up to 30%. It’s therefore no surprise that 60% of cash-strapped consumers are actively looking for coupons, discounts, and deals to offset persistently high prices,” says Jonathan Spencer, Brand and Campaign Manager at OneDayOnly.
Consumers spending more to buy less proves that many consumers delay buying items until they go on sale as part of their “cost-saving strategies”, notes a report by McKinsey & Company.
This “cost-saving strategy” can be found in categories such as groceries, personal care products, and household goods, with 50%, 41%, and 43% of shoppers, respectively, holding out for discounts before making a purchase.
“Interestingly, younger generations are leading this trend, with 66% of Gen Zs and 67% of Millennials waiting for sales, compared to just 44% of Gen Xs.”
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Spencer says another trend used by consumers is impulsive buying in response to limited-time offers.
“Consumers are increasingly sensitive to the possibility of future price increases, which can drive them to make snap purchases when they spot a short-lived promotion.”
The E-commerce Discounting & Promotions Report reveals that shoppers are 178% more likely to purchase if the product is both discounted and available for a limited time.
He adds that beyond the economic necessity of saving, there is a psychological motivator behind the hunt for discounts, which he labels as “the feelgood factor.”
“It’s not just about the money – 38% of people say they experience genuine excitement when they land a deal, 63% feel like a savvier shopper and 40% report that using discounts makes them more satisfied with their purchases.”
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He says another reason contributing to the appeal of discounts is the growing impact of influencers. “With social media playing an ever-expanding role in shopping habits, influencers are increasingly guiding consumers towards discounts and deals.”
People naturally seek validation from their social groups. “Influencers, with their authority and popularity, tap into this by showcasing discounted products that their followers are likely to embrace.”
Influencers also leverage the principle of reciprocity by offering rewards, discounts, or free samples, which prompts followers to return the favour by making purchases or engaging with content.
“Additionally, influencers amplify their persuasive power by leveraging social proof – demonstrating that others within the followers’ reference group have already taken advantage of the discount, which motivates individuals to conform and make the same purchase.”
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