Insights & Trends

The reduce, reuse, recycle mantra is seeping its way into how we shop.   

A growing focus on climate change over the past few years has created a new sustainable generation that demands more from brands, while at the same time pushing “conscious consumerism” into the mainstream.

From investing in quality, timeless wardrobe staples to shifting their spend to second-hand marketplaces and choosing brands based on their ethical credentials, today’s consumers are increasingly re-evaluating their purchase decisions and the impact they have on the planet.  

The result? Brands are now being forced to re-think how they market their goods, while having a tangible impact on retailers’ bottom lines. 

Our latest spend data, based on the purchasing habits of over 22 million UK bank cards, shows that in the past year, spend at second-hand marketplaces has jumped 85%. 

Whether it is a high-end designer bag, a vintage chair, or some pre-loved children’s toys, with ‘new’ no longer being on trend, it’s no surprise that UK consumers are now almost four times more likely to make a purchase with the likes of Depop, Vinted or eBay than they are with fast fashion brands.  

In fact, the number of second-hand purchases customers make on average per year increased by 28% in 2021, compared to a 1.1% rise for traditional retailers. It is clear that second-hand marketplaces are taking a slice of the traditional retail pie.  

Conscious consumerism isn't a "flash in the pan" fad

This shift in consumer behaviour is pivotal and one traditional retailers must respond to. We have already seen large fashion brands venturing into the sustainability space to capitalise on this trend, offering consumers an alternative and more sustainable way to shop. 

H&M invested heavily in its Conscious range, ASOS created its own marketplace to give second-hand and vintage items a platform, while M&S introduced in-store clothing recycling programs to boost circularity of its products.

Even “fast fashion” brands like Missguided are taking steps to improve their climate footprint and appeal to this consumer base, with the introduction of a new Restyld range made from recycled materials.  

Marketers should think of conscious consumerism not as a challenge to their traditional growth plans, but – like Missguided has - as an opportunity to tap into a new consumer group, create new opportunities to engage with customers, and build more meaningful and more loyal relationships with shoppers.  

So how can retailers compete with the second-hand marketplace? 

To stay “on trend” with this growing set of consumers, retailers and marketers should consider making their eco-friendly ranges front and centre of their marketing campaigns and offer discounts on such clothing lines to shoppers.  

Retailers could also introduce incentives - such as vouchers - for consumers to recycle their old items in store, to help drive footfall, future purchases, and build brand affinity. 

Targeting customers with relevant offers through their banking channel, based on their spend patterns, is an effective way retailers and marketeers can increase engagement and purchases, whether that is online or in-store. 

And with more consumers looking closely at brands’ ethical endeavours, creating hubs on your website and app for your environmental credentials will go a long way in appealing to this growing consumer group.  

How Cardlytics can help 

Because we see 1 in every 4 UK bank transactions, we can develop a marketing strategy to help your brand compete in this new retail market. Contact us today for an analysis and campaign strategy customized for your brand.   

As a data guy, I love purchase data. Because for me the data is a signal. A positive confirmation that something we want to happen, happened. In our world it drives conversions, and we are drowning with conversions, in a good way. I participated in a fireside chat at this year’s Loyalty Summit to talk more about purchase data as it relates to loyalty, customer relationship management (CRM), and Cardlytics. Here are some of the highlights from that chat.

Mutual Loyalty in a Closed Loop Program

Thirteen years ago, we created an industry that would benefit banks, brands, and their shared consumer. As an advertising platform within banks’ digital channels, we are able to capture anonymized customer spend data that helps us target the consumers brands want to reach. Ultimately, this drives loyalty for the bank and the brand. At Cardlytics, we call this “mutual loyalty.”  

Here’s a simplified example of how this works… Most retailers know who comes into their store, but they don’t know what happens after they leave. They don’t know if they are getting their full share of a consumer’s category spend or only a fraction.  By partnering with financial institutions, Cardlytics is able to understand the full view of the consumer, allowing a relevant offer to be delivered to a consumer that will ultimately grow the brand’s share of category. Brands get efficient use of marketing dollars while financial institutions get to deliver meaningful value that funded by the advertiser, to their customers.

It starts with a (data) signal

We also work with the banks to help create an experience of reward and delight. We know that customers log into their mobile app or online bank between 10 to 12 times a month to look at their balance, transaction history, etc. We inherently become another channel or extension of the CRM system for advertising partners, creating a full closed loop loyalty program. It’s a win, win, win - the advertiser reaches its intended audience to create a sale, the bank gets to delight its customer with cash back rewards from some of the top brands in the country, and the customer receives cash back into their account.

It’s a fast-moving space but we are excited for the success our banks, advertisers and end consumers are seeing through our program.

You can listen to my recent session at The Loyalty Summit- CRM.