Majority of respondents rank cashback as the number one preferred reward type and say they choose retailers based on whether rewards are offered
Wildfire Systems Inc., an innovative financial technology platform that powers reward programs and shopping companions, in conjunction with research firm Big Village (formerly Engine Insights), today announced the findings of a new survey, detailed in a report titled “Online Shopping Rewards Have Gone Mainstream, Offering A Win For Banks, Retailers, And Consumers Alike.”
More than 1,000 adult consumers across the U.S. were surveyed to assess their opinions on shopping rewards programs including cashback, discounts, and other money-saving tools. The findings reveal the growing importance of these programs as prices rise due to inflation, and the impact they have on consumer shopping behavior and brand affinity.
The report’s key takeaways include:
The rise of inflation is increasing consumer demand for rewards anywhere and everywhere they shop.
- 90% are more interested in receiving discounts, using coupons, and earning cash back rewards when they shop because of rising prices
- Inflation has increased consumer preference for receiving cashback rewards above all others: 1 of 3 consumers started using these programs in the past two years
- The majority of higher-income households (82%) value rewards, with respondents that have a household income of more than $100K seeking them as well
- A combined 80% of respondents ranked the ability to earn some form of cashback as their number one preferred method of receiving rewards
E-commerce incentives like cashback and coupons have a huge impact on consumer behavior, influencing how customers shop, where they shop, and whether they complete a purchase.
- Coupons and discounts positively influence ecommerce conversion rates: 85% of Gen Z consumers, 86% of Millennials, and 79% Gen X and Baby boomers are all more likely to complete a purchase when they have a coupon or discount
- Overall, 82% of consumers said they are more likely to complete a purchase when they have a coupon or discount
- 81% of all respondents said they’re more likely to purchase from an online store that offers some sort of reward or cashback on purchases than one that doesn’t
- 68% of Gen Z and Millennial respondents base retailer selection on whether or not rewards are offered
Easily-accessible shopping rewards are critical to retail brands’ ability to engage and build relationships with consumers across all age groups – from Gen Z to Baby Boomers.
- The majority of consumers prefer convenient access to rewards, with 60% of those surveyed expecting to find discounts/rewards while they are shopping at an online store
- 87% of Gen Z and Millennials and 81% of Gen X and Baby Boomers proactively seek out retailers that offer rewards
- Similar to how coupons and discounts influence purchase decisions, 85% of Gen Z and Millennial respondents claim receiving rewards influence their decisions on where to shop and how to pay
- 79% of all respondents prefer to have shopping rewards automatically applied at checkout, while 69% of consumers agree that this is the simplest form of accessing rewards
- 7 out of 10 consumers prefer cashback deposited directly into a bank account or as a credit on their credit card
“This new research reveals current consumer attitudes towards shopping in a fairly tough economy,” said Jordan Glazier, CEO, Wildfire. “The findings highlight the fact that cashback rewards, discounts, and other incentives have crossed the chasm into the mainstream. Shopping rewards are not only popular, consumers now expect them from their favorite brands, financial institutions and other service providers. Rewards programs have become critical to driving customer engagement and retention, as well as online retail revenues.”
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