Upside Unveils Inaugural Consumer Spend Report and The Rise of the 'Uncommitted Customer'

WASHINGTON, D.C., August 29, 2024 –– Today, Upside 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, this report provides critical insights for retailers looking to adapt to the rapidly changing market environment. Among multiple findings, the report highlights the rise of the "uncommitted customer" – an opportunistic consumer group who shops across different locations and formats, prioritizing their own needs over brand loyalty.

"Every day we work to deeply understand what retailers and consumers really need, 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 that can help retailers make better business decisions, and the rise of the uncommitted customer is chief among them. When we think about our own buying behavior, I think we'll find that 'the uncommitted customer' is most of us. And retailers are now grappling with that reality."

The Consumer Spend Report 2024 is based on extensive research, including the analysis of 1.1 billion transactions from over 8,000 retail partners and two national surveys of 3,700 American consumers. The report also incorporated insights from over 3,400 consumer interviews, adding a human element to the qualitative data. This year’s report found five notable trends:

1. 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.

2. 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.

3. 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.

4. 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.

5. 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.

Upside works with more than 100,000 retailers nationwide to help them reach new customers and convert them into regular customers. If you want to learn more or partner with Upside, visit www.upside.com/business.

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 towards important sustainability initiatives. For more: www.upside.com