Opinion holder entrepreneur Contributors are their own.
Cash as a means of payment may no longer be king, especially with the rapid shift to online shopping and digital wallets. Nonetheless, today’s consumers clearly prefer cashback rewards as the currency of their loyalty programs. At the same time, cashback and coupon reward programs are becoming more important to consumers. When the economy is good, saving money is good, but in an uncertain economy and high inflation, cashback rewards and discounts are essential for most consumers. .
Expect rewards for shopping, from groceries to financial services to travel. At the same time, customers want convenience and frictionless shopping while immersing themselves in their online experience.
However, not all rewards programs are created equal or to suit consumer tastes. One is that they want a simple and user-friendly experience. They also want benefits that are seamlessly integrated into their shopping experience and discounts that are automatically applied at checkout.
what are they please do not They want to bypass the shopping experience or search a directory of brands to “turn on” offers.
Simply put, the easier it is to earn rewards from your loyalty program, the better. Retailers and payment enablers (financial institutions and card issuers) who make rewards programs naturally accessible and seamless within the shopping journey are most successful in attracting and retaining valuable consumer relationships.
RELATED: How brands turn short-term rewards into long-term loyalty
Growing loyalty and rewards programs
Loyalty programs benefit both retailers and consumers. Brands that offer rewards programs typically achieve stronger brand loyalty, increased customer retention, lower user acquisition costs, and increased revenue. Consumers benefit from low prices and ease of use, such as earning cashback on purchases and using coupons at checkout.
Industry research indicates that approximately 83% of consumers are more likely to do repeat business where a rewards program exists than an equivalent business without a rewards program. Nearly two-thirds of Internet users believe that earning rewards and loyalty points is one of the most valuable aspects of their shopping experience.
Consumer expectations of rewards programs and online shopping behaviors have evolved to drive retailer loyalty. Consumers are always finding ways to shop, but in the current economic climate, many are finding ways to expand their budget by joining loyalty and shopping rewards programs to earn discounts and cashback rewards. I’m exploring. A recent survey commissioned by Wildfire found that 90% of consumers said they would get discounts, use coupons or earn cash back rewards when shopping because prices are rising. said there was growing interest in
In fact, shoppers see rewards as an integral part of their shopping experience directly through retailer programs, credit card companies, or third-party programs. Online shopping companions such as PayPal’s Honey, Capital One Shopping and Acorns Earn programs, along with built-in discount alerts provided by the Microsoft Edge browser and Bing search engine, are growing in popularity. They help direct consumers to coupons, discounts, and cashback offers as they shop.
What makes the use of these programs even more appealing to consumers is that they are embedded in the purchasing process and activated in the natural flow of a user’s online shopping experience. Another data point from Wildfire’s research shows that most consumers expect coupons to be automatically applied at checkout as a natural part of the shopping experience. They also prefer direct payment cashback benefits, with nearly half of consumers choosing cashback as a credit to their bank account or credit card, and about 30% of customers choosing through services such as PayPal, Venmo, and Cash App. preferred to receive
RELATED: Why Small Businesses Use Cashback Cards
Cash as Reward Currency — Simply Offered
When it comes to coupons, discounts and points, incentives for shoppers may be good, but most consumers prefer cash as their reward currency. In a Wildfire consumer survey, 8 out of 10 of her consumers surveyed said they preferred rewards in the form of cash back to points, miles, or other types of credit.
Many retailers believe that offering incentives such as cashback, coupons, and shopping rewards can influence consumer buying behavior, sales conversion, and even where consumers shop. We found out. More than 80% of the consumers we surveyed report they are more likely to shop at stores that offer cash back rewards on their purchases. You can get rewarded.
The good news is that many retailers are starting to listen to their customers. This indicates that almost half of D2C retailers currently offer or plan to offer cashback rewards as part of their loyalty, as shown in a recent Comarch report. increase. program.
Related: How to Get Extra Cashback After Existing Cashback + Discounts
How to implement cashback in your loyalty program
What’s important for online businesses looking to capitalize on consumer demand for cashback rewards?
- Make sure your loyalty and rewards programs are easy to understand. Consumers clearly prefer simple and convenient programs. Don’t jump through hoops to activate and earn rewards.
- Enable a cashback reward component in addition to or instead of a points-based loyalty scheme. If a company doesn’t have the resources or infrastructure to implement a cashback rewards program, it should allow its brands to participate in popular third-party rewards platforms. This is usually achieved by joining a major affiliate network such as CJ or Impact.
- If the brand is already participating in an online affiliate program, the publisher should allow the brand to be included in browser extensions and cashback/loyalty categories. By gaining exposure with these publishers, brands can benefit from increased awareness by presenting rewarding offers to consumers as they shop.
Conclusion? Cashback reward programs drive both top-of-funnel shopper visits and bottom-of-funnel sales conversions.
Disclosure: Acorns and Microsoft are Wildfire partners.