Inflation drives 90% of consumers to seek discounts and cashback when shopping online
Majority of respondents rank cashback as the preferred reward type and say they choose retailers based on whether or not they offer rewards
SAN DIEGO, October 4, 2022 /PRNewswire/ — Wildfire Systems Inc., an innovative fintech platform that powers rewards programs and shopping companions, in collaboration with research firm Big Village (formerly Engine Insights), announced today the results from a new survey, detailed in a report titled “Online shopping rewards have gone mainstream, delivering a win for banks, retailers and consumers.”
Over 1,000 adult consumers across the United States were surveyed to gauge their opinions on shopping rewards programs, including cashback, rebates and other money-saving tools . The results reveal the growing importance of these programs as prices rise due to inflation, and the impact they have on consumer buying behavior and brand affinity.
Key takeaways from the report include:
Rising inflation increases consumer demand for rewards wherever and wherever they shop.
- 90% are more interested in receiving discounts, using coupons and earning cashback when shopping due to rising prices
- Inflation has increased consumers’ preference for receiving cashback above all else: 1 in 3 consumers have started using these programs in the last two years
- The majority of high-income households (82%) value rewards, with respondents with household income above $100,000 look for them too
- A total of 80% of respondents ranked the opportunity to earn some form of cash back as their preferred method of receiving rewards.
E-commerce incentives such as cashback and coupons have a huge impact on consumer behavior, influencing how customers buy, where they buy, and whether they make a purchase.
- Coupons and discounts positively influence e-commerce conversion rates: 85% of Gen Z consumers, 86% of Millennials, and 79% of Gen Xers and 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 were more likely to buy from an online store that offers some sort of reward or cashback on purchases than one that does not
- 68% of Gen Z and Millennial respondents base retailer selection on whether rewards are offered
Easily accessible shopping rewards are critical to retail brands’ ability to engage and build relationships with consumers of all age groups, from Gen Z to baby boomers.
- Majority of consumers prefer convenient access to rewards, with 60% of respondents expecting to find discounts/rewards when shopping at an online store
- 87% of Gen Z and Millennials and 81% of Gen X and Boomers proactively seek out retailers that offer rewards
- In the same way that coupons and discounts influence purchasing decisions, 85% of Gen Z and Millennials say receiving rewards influences their decisions on where to buy and how to pay.
- 79% of all respondents prefer shopping rewards to be automatically applied at checkout, while 69% of consumers agree this is the easiest 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 study reveals current consumer attitudes toward shopping in a fairly challenging economy,” said Jordan Glazier, CEO, Wildfire. “The results highlight the fact that cash back, rebates and other incentives have crossed the chasm into the mainstream. Shopping rewards aren’t just popular, consumers now expect them from their favorite brands, financial institutions and other service providers. Rewards programs have become essential for driving customer engagement and retention, as well as online retail revenue.”
Please To download report for the full results of the Wildfire Systems investigation.
About Wildfire Systems, Inc.
Wildfire Systems provides an enterprise platform that allows customers to integrate social commerce, cashback, digital coupons and shopping companions into their existing services. Wildfire’s patented suite of technologies rewards online purchases and harnesses digital word-of-mouth, delivering enhanced user experiences, consumer loyalty and new revenue streams for customers. Wildfire generates additional revenue for over 50,000 online merchant programs in over 50 countries. The company is based in San Diego County and was founded in 2017. For more information, visit www.wildfire-corp.com.
SOURCE Forest Fire Fighting Systems