Ninety per cent of consumers in the US are more interested in receiving discounts, using coupons, and earning cashback rewards when they shop online because of rising prices. One out of three consumers have started using cashback reward programmes in the past two years due to the impact of inflation, according to a recent report.

Overall, 82 per cent of consumers said they are more likely to complete a purchase when they have a coupon or discount, according to a report titled ‘Online Shopping Rewards Have Gone Mainstream, Offering a Win for Banks, Retailers, and Consumers Alike’ by financial technology platform Wildfire Systems Inc. The findings reveal the growing importance of these programmes as prices rise due to inflation, and the impact they have on consumer shopping behaviour and brand affinity.

A combined 80 per cent of respondents ranked the ability to earn some form of cashback as their number one preferred method of receiving rewards. Seventy-nine per cent of all respondents prefer to have shopping rewards automatically applied at checkout, while 69 per cent of consumers agree that this is the simplest form of accessing rewards.

The majority of consumers preferred convenient access to rewards, with 60 per cent of those surveyed expecting to find discounts/rewards while they are shopping at an online store. Moreover, 7 out of 10 consumers prefer cashback deposited directly into a bank account or as a credit on their credit card. The majority of higher-income households (82 per cent) value rewards, with respondents that have a household income of more than $100,000 seeking them as well, added the report.

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. Eighty-one per cent of all respondents said they are more likely to purchase from an online store that offers some sort of reward or cashback on purchases than one that does not.

“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, but consumers now also expect them from their favourite brands, financial institutions, and other service providers. Rewards programmes have become critical to driving customer engagement and retention, as well as online retail revenues.”

More than 1,000 adult consumers across the US were surveyed to assess their opinions on shopping rewards programmes including cashback, discounts, and other money-saving tools.

Fibre2Fashion News Desk (NB)

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