Five win-win ways to help students' spending go further
September sees an annual influx of people living independently for the first time, as new students leave home and head off to university.
Figures from the Higher Education Statistics Agency show that more than 1.3 million people enter higher education courses in the UK each year.[1]
UCAS – which handles applications for full-time undergraduate courses only – reports that nearly 440,000 applicants have been accepted in 2025.[2]
This includes 255,130 UK-resident 18-year-olds, a record high. Dr Jo Saxton CBE, UCAS chief executive, said: “It’s great to see these applicants securing a university place in record numbers, seeking more education and investing in their futures.”
Attending university, especially as a full-time undergraduate, carries a substantial financial cost. But with first-year students also making many purchasing decisions for the first time, the new academic year represents a huge opportunity to gain loyal customers at the very beginning of their adult life.
How are students coping with the cost of living crisis?
Like other UK households, students have faced a rapidly rising cost of living in recent years. Hargreaves Lansdown reported that the annual rate of inflation was 8.6% in 2021-22, while student loans increased by just 2.3%.[3]
In 2022-23, inflation reached 6.8% and loans again increased by 2.3%. This led two thirds (65%) of students to cut back on spending on food and other living essentials.
Nearly the same proportion (64%) were accruing debts or using up savings on essential living costs; most students had a job, with 30% increasing their hours in response to rising costs.
The ONS reported similar findings. Some students could not afford to heat their accommodation, and some had days where they did not eat.[4] One told the ONS that he spent more time in the university library during the winter months, because it was heated.
How helping students can earn their loyalty
Leaving home is always a turbulent time. For new undergraduates, the lifestyle change can be jarring, as they may be in an unfamiliar city, placed into accommodation with unfamiliar people, and starting a new job alongside their first weeks of study.
There are a lot of decisions to make and a lot of costs to cover. Helping to simplify that process, while making things more affordable, can secure a loyal customer for life.
Here are five ways to reach out to ‘freshers’ to build brand awareness and market share, while making their university journey that little bit easier – a win-win outcome for all.
1. Personalised promotions
Students are often solely responsible for their buying decisions. Figures from Co-op Insurance show that 8% live alone.[5] Many more will live in a house-share but shop independently from their roommates.
This is an excellent opportunity to build a one-on-one relationship via personalised promotions and loyalty programmes. Make a student feel heard and they are likely to stay with you for the duration of their studies, and potentially many years beyond.
2. Small gestures
Every penny counts for students. A 2024 Nationwide survey found that 78% of students were worried about how to pay their way through university.[6]
The survey revealed that students expect to spend nearly £100 a month on several categories of everyday products:
- Toiletries: £85.36
- Cleaning products: £86.98
- Stationery: £89.21
- Shoes: £96.14
- Clothes: £115.52
Help to reduce these by even a small amount – for example, through the use of money-off coupons and small free gifts – and there’s a good chance you’ll see a relatively high redemption rate with an increase in down-the-line repeat purchases.
3. Big-ticket items
Don’t underestimate students’ spending power. Despite the difficult climate, there are some big-ticket items that undergraduates can’t live without.
The Co-op Insurance survey[7] found that students’ top ten ‘prized possessions’ include:
1. Laptop
2. TV
3. Headphones
4. Clothes
5. Games console
6. Cosmetics
7. Coffee machine
8. Music system
9. House plants
10. Sports equipment
While some of these are essentials, others are relatively expensive creature comforts. This suggests that student discounts on luxury items is an avenue well worth exploring.
4. Subscription boxes and hampers
Subscription boxes are a good fit for students. They can take the stress out of shopping for essentials while giving some confidence about the cost of a certain everyday expense for up to 12 months.
Meal prep kits have been massively popular in recent years, as we reported in our previous Insights. Home delivery hampers can also cover some of the categories mentioned in the Nationwide survey, such as stationery, cosmetics and even clothing essentials.
To maximise your appeal to the student market, consider offering ten-month subscriptions instead of 12 months. This can allow students to end their subscription in June, ahead of the upheaval of moving house or heading home for the summer holidays.
5. Prize draws and competitions
One way to get a luxury item on a tight budget is to win it. A DCMS report found that 11% of 18 to 24-year-olds entered a prize draw or competition in the past year. Across all age groups, 9% of full-time students had entered at least one prize draw or competition.[8]
Unsurprisingly, most people cited prizes as their motivation for entering. 55% said they entered competitions for the chance to win a life-changing prize. But nearly as many (51%) did so in the hopes of winning something they simply couldn’t afford.
Prizes don’t have to be huge – nearly a third (32%) of people surveyed by DCMS said they play for the chance to win small prizes. Again, students are likely to be among this group, as even a small win can represent a significant saving on their monthly living costs.
How to sell to students
It’s a good idea to put together some packages and promotions targeted specifically at the student population – including all year groups, postgraduates, part-timers and international students, that’s a market of nearly three million people.[9]
Marketing can be price-focused, such as money-off coupons and loyalty discounts, or aspirational, such as prize draws and luxury hampers. Like the rest of us, students have to cover essential living costs, but they also appreciate an occasional indulgence.
Remember to align your campaigns with the academic year. ‘Back to school’ doesn’t end in September, as many students will be setting up subscriptions (often with the help of their student loan) throughout the autumn months – and allowing them to end in June can be a big help.
MRM’s expertise across all of these channels can help you to create a multi-resource marketing campaign, backed up by 24/7 online access to customer data. To find out more, contact us today.