Upside Debuts Consumer Spend Report With Insights From 1.1 Billion Transactions and National Surveys
WASHINGTON, DC (September 4, 2024) — Upside has released its first-ever Consumer Spend Report, offering a detailed exploration of consumer behaviors and sentiments across the nation. By analyzing data from 1.1 billion transactions and extensive nationwide surveys, the report provides critical insights about the beliefs which shape the way people shop. A significant finding is the rise of the "uncommitted customer" – a consumer group who shops across different locations and formats, prioritizing their own needs over brand loyalty.
"Every day we work to deeply understand what consumers and retailers seek, so we can make brick and mortar commerce work better for all of us," said Upside co-founder and CEO Alex Kinnier. "This inaugural Spend Report sheds light on important shifts in consumer behavior — the most significant being the rise of the uncommitted customer. When we think about our own buying behavior, we’ll understand 'the uncommitted customer' is actually how most of us predominantly shop today and the resulting impact on the marketplace."
The Consumer Spend Report 2024 is based on extensive research, including the analysis of 1.1 billion transactions from over 8,000 retailers and two national surveys of 3,700 US consumers. The report also incorporates insights from more than 3,400 consumer interviews, adding a human element to the qualitative data. This year’s report identified five notable trends:
Negative consumer sentiment about the economy
Despite a cooling inflation rate, 56% of surveyed consumers perceive the economy as worse than the previous year. This sentiment is reflected in their budgeting behaviors, with 89% of respondents relying on coupons or promotions to control spending. Younger consumers (18-24) and larger households expressed the most pessimism with their own financial situation.
Price sensitivity driving uncommitted customer behavior
Consumers are cross-shopping more than ever, with 81% of grocery shoppers comparing prices across stores and a significant portion belonging to multiple loyalty programs. This trend is prevalent across food and fuel categories, highlighting the growing number of uncommitted customers who prioritize value over brand loyalty.
Decline in inflation-adjusted sales across categories
The report reveals that while topline sales figures may appear stable for businesses, adjusting for inflation shows a decline in real revenue across categories. Grocery stores have experienced a 3% decrease in inflation-adjusted revenue per transaction year-over-year, with restaurants and convenience stores facing similar challenges with even larger impacts.
Loyalty programs have wide adoption but limited influence
Loyalty programs remain a critical strategy for retailers, with over 90% of consumers considering loyalty rewards when choosing where to shop. However, the report highlights a disconnect between loyalty membership and loyal behavior. Many consumers join multiple programs within the same category, and say they actually use loyalty on half of transactions or less.
Skepticism over dynamic pricing
Although more consumers are aware of dynamic pricing, widespread adoption remains limited due to mixed consumer sentiment and potential media scrutiny. Alternatively, personalized promotions are viewed more favorably, with 45% of respondents preferring retailers that offer tailored discounts.
ABOUT UPSIDE
Upside is a marketplace that connects consumers with brick and mortar retailers through personalized offers. Since 2016, Upside’s AI-driven personalization technology has helped millions of people get more purchasing power on the things they need, and tens of thousands of businesses earn measurable profit. Billions of dollars in commerce run through the Upside platform every year, and that value goes directly back to our retailers, the consumers they serve, and toward important sustainability initiatives. For more: www.upside.com
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