One significant change that is changing the retail landscape in the fast-paced digital economy of today is the emergence of deal aggregator websites, which are influencing consumer behavior more and more through online platforms and real-time incentives. Traditional retail loyalty programs are being seriously disrupted by these platforms, which gather and centralize promotional offers, flash sales, and discount codes from thousands of online retailers.
The Conventional Loyalty Model
Retailers have used loyalty programs as a key tactic to keep customers for decades. Usually, tiered reward levels, member-only discounts, or point-based systems are used to encourage customers to return. The purpose of these initiatives is to create an emotional bond with the brand and a feeling of exclusivity.
But loyalty programs have their limitations as well. They usually only apply to a single retailer and frequently call for sustained engagement before customers experience noticeable benefits. These programs are no longer as successful as they once were in the fiercely competitive world of e-commerce, where consumers are becoming more price sensitive and less loyal to brands.
Only 38% of consumers say they feel loyal to a brand today, compared to 49% in 2019, according to McKinsey & Company’s report on consumer loyalty trends. A decrease in the effectiveness of conventional loyalty programs is indicated by the study’s finding that customers are more inclined to move retailers in search of better offers or greater convenience.
Access Deal Aggregator Websites
Platforms that aggregate deals, like HotDeals, RetailMeNot, and Honey, have capitalized on this changing consumer mindset. These websites compile thousands of sales, discounts, and cashback offers in one location, enabling customers to base their purchases on availability and price rather than loyalty.
Convenience is a major differentiator. Through aggregators, customers can access immediate savings rather than having to wait months to redeem a small reward from a loyalty program. To notify users of the greatest offers, these platforms frequently make use of apps, browser extensions, and real-time alerts.
For instance, HotDeals enables users to filter deals by categories like electronics, fashion, and home goods and compare real-time offers from several retailers. This gives the customer choice, transparency, and immediacy—values that today’s digital native consumers place a higher priority on.
Using Choice to Undermine Loyalty
A shopper’s brand loyalty decreases as they see more options. Aggregator platforms democratize transactions by giving smaller retailers and well-known brands equal visibility. Customers now hold more power than retailers as a result.
For instance, a customer searching for headphones might typically go to Best Buy and accrue points using their loyalty card. However, that same customer can now compare prices from Amazon, Walmart, Target, and dozens of other lesser-known online retailers—often with coupon codes attached—by using an aggregator website.
The retail industry is taking notice of this disruption. In 2024, more than 68% of consumers used a coupon extension or aggregator website before making an online purchase, up from 43% three years prior, according to Adobe Analytics.
AI’s and dynamic personalization’s roles
AI and machine learning are also being used by a lot of aggregator platforms to improve user experience. Platforms are now able to provide real-time personalized deal recommendations by examining browsing patterns, past purchases, and deal interaction patterns.
This degree of customization is comparable to—and frequently exceeds—what conventional loyalty programs can provide. An aggregator platform might proactively recommend several higher-value offers based on the user’s current interests, making the loyalty discount less alluring in contrast to a retailer sending a customer an email with a 10% birthday discount.
What Shops Can Do
In light of this increasing disruption, how should retailers react?
Instead of opposing deal aggregators, some have begun to collaborate with them. These days, retailers like Macy’s and Adidas work with coupon platforms to boost visibility during busy promotional seasons like Back-to-School sales or Black Friday. Others have started incorporating exclusive online-only deals and real-time price matching to keep customers interested.
Additionally, retailers are spending more money on mobile-first, more adaptable loyalty apps that connect to external platforms. Meeting customers where they are and developing a hybrid experience that blends the accessibility of aggregator incentives with the exclusivity of loyalty are crucial.
A broader change in customer expectations is indicated by the growth of deal aggregator platforms. Consumers today seek value, transparency, and immediacy. Their loyalty has shifted from brands to the best offer.
Though they need to change, traditional loyalty programs are still relevant today. In a market where consumers have short attention spans and switching costs are almost zero, retailers who don’t adjust run the risk of becoming irrelevant.
Retailers can reshape their loyalty strategies for a more competitive digital future by comprehending the forces driving this disruption and embracing cooperation with deal aggregators.
Disclaimer:
The information presented in this article, including promotional offers, pricing, and third-party references, is based on publicly available data and sources believed to be reliable at the time of publication. However, we do not guarantee the accuracy, completeness, or current validity of such information. Deals and offers are subject to change without notice and may vary by region or availability. Readers are encouraged to verify details directly with the respective retailers or platforms. This content is for informational purposes only and does not constitute an endorsement or financial advice.