Despite signs of abating inflation, rising prices and economic uncertainty continue to influence consumer behavior. Given the economic environment, many customers are ‘brand loyal’, but emphasized that consumers these days often choose retailers and products based on price as a major factor.
But what does price really mean? Not necessarily the amount of the price tag. Instead, there is an increasing focus on delivering more value to consumers. This may include strategic discounts, targeted delivery offers, and other cost-saving methods such as rewards or cashback on purchases. offers superior products and experiences at the right price level to ease the burden on household budgets.”
In general, retailers experiment with different promotional elements to convey value, reduce the actual cost of the product, and win the battle for the customer’s wallet. Loyalty programs and strategically deployed marketing tactics can help retailers win over hesitant consumers.
Today’s consumer mindset
With rising prices and a volatile economy, consumers are more hungry than ever for bargains. retail dive A Morning Consult survey found that 85% of U.S. respondents said rising inflation is affecting their shopping habits, including behaviors such as shopping at discount stores and consolidating shopping trips to cut costs. It is clear what you are saying.
Meanwhile, a survey commissioned by Wildfire found that 90% of respondents were more willing than ever to take advantage of discounts, use coupons, or earn cash back rewards when shopping online due to price increases. I have found that you are interested in
strategic discount
Consumers expect personalized offers and content based on the widespread adoption of services such as Netflix and Amazon that offer specific recommendations based on their interests. As such, they expect nothing less from their favorite brand.
By leveraging data in loyalty programs and looking at member purchase histories, retailers can deliver the personalized experiences shoppers expect. Instead of store-wide discounts that can significantly reduce margins, brands should consider offering VIP customers targeted offers based on their past purchases. For example, focus on products of the same brand or similar/related products.
You can also consider other triggers, such as individual promotions based on a customer’s historical average order value. For example, if your customers tend to spend an average of $100 on all purchases, test their reaction to a significant discount offered when the total is at or above that level.
Storewide discounts and benefits
Our research also found that discounts and reward programs can have a significant impact on purchasing behavior.
- 82% of consumers agreed they were more likely to complete an online purchase with a coupon or discount
- 81% are more likely to buy from an online store that offers some kind of reward or cashback on purchase.
- 61% of survey respondents said they “always or often” look for coupons/coupon codes, discounts and cashback offers when shopping online.
Clearly, retailers can appeal to these consumers by offering site-wide discounts – “burst” or short-term only – to protect their margins. Merchants need to expand this marketing channel further, not only by limiting the duration of promotions to protect margins, but also by constantly sharing discounts and being able to sell across their network of publishers. You should also look for additional publishers that match your brand and can effectively drive customers within your market.
A more efficient marketing channel
Affiliate programs are one of the smartest marketing tactics to deploy. Because the percent-of-sell pricing model provides retailers with a built-in return on their marketing spend. But in addition to this beneficial efficiency of the affiliate marketing model, the affiliate program also offers brands a foray into third-party cashback reward programs. It has become widely used by many consumers due to the growing popularity of programs such as PayPal’s Honey and Capital One Shopping. And Rakuten Rewards.
These programs rely on the affiliate network’s tracking and attribution infrastructure. Where brands are unable to meet consumer demands by offering cashback rewards directly to consumers, brands should enable these types of affiliate publishers to promote their offers and brands (Brand Affiliates instead of excluding participation in the program). With millions of users each, the cashback rewards platforms mentioned above and other similar platforms act as highly efficient new customer acquisition channels for your online business.
Our findings show that 4 out of 5 consumers’ store choices are influenced by the availability of rewards, so leaning toward these channels could help retailers create cash-back-hungry customers. increase exposure to and help drive those customers to your brand.
No one can predict where prices will head as we enter the new year, but it’s clear that retailers can positively impact shoppers by strategically offering and promoting special offers. am. Consumers in today’s price-sensitive world are much more likely to interact with businesses when they offer discounts, offer rewards or work with affiliates to promote savings.
As Vice President of Merchant Business Development wildfire system, Michelle Wood, oversees the merchant network side of the platform. Her team builds productive partnerships with online retailers and her network of affiliates and brings them to her Wildfire platform to improve incremental revenue opportunities. With over 16 years of experience in digital media, affiliate marketing and influencer media sales, Wood has worked with many of the world’s best-known enterprise e-commerce companies to acquire new loyal customers and meet revenue targets. has outperformed and achieved her positive ROI. Prior to joining Wildfire, she held executive positions at major performance her marketing companies such as ShopAtHome.com and Coupons.com.
