Search Ads, Yes -- But Consumers Want Cashback Loyalty Programs

Consumers love your brand, but it may not matter how good the paid-search ad campaigns are at reaching the target consumers. If the retailer doesn't have a cashback or loyalty program, all efforts may be futile, according to findings from a study released Tuesday.

The findings from a loyalty study released Tuesday that surveyed 3,350 Americans shed light on consumer shopping decisions NS suggest that cashback programs are better positioned to increase in-store traffic and average order spend compared with traditional loyalty programs.

The Dosh Consumer Loyalty Survey found that 83% of respondents said cash makes them feel rewarded. Dosh, a cashback app and card-linked service for retailers like Forever 21, Neiman Marcus, World Market, CVS, Walmart, Target, and ExxonMobil, found that one in three respondents said they would switch to a merchant that provides cash back over one that does not.

Some 60% said they would give up social media for the day in exchange for $20 in cash rewards.



Take Eddie Bauer’s loyalty program, Adventure Rewards, for example. The consumer joins the loyalty program, spends between $500 and $749 in one year, and earns 5% back on each dollar to spend on future purchases.

The National Retail Federation (NRF) predicts 2018 retail sales growth at between 3.8% and 4.4% compared with the prior year, as retailers and manufacturers search for ways to acquire and retain loyal customers.

As more consumers use their smartphones to shop, more than two-thirds said they have used a coupon in the last year, but only three in 10 year their phone to get cash back on daily purchases.

Breaking down the spend by generation, 68% of Gen Z respondents report that they frequently purchase items using their smartphone, 69% of millennial said they frequently purchase items using their smartphone. Only 31% of baby boomers purchase items using their smartphone.

About 55% report having at least one shopping mobile app connected to their bank account, debit or credit card.

Some 43% of Gen Z shoppers report signing up for an in-store rewards program, compared with 53% of millennials and 57% of Gen Xers. About 83% of consumers say they feel little to no reward from invitations to special events from a brand, and overall, 48% of consumers don’t feel that major retailers value their loyalty.

1 comment about "Search Ads, Yes -- But Consumers Want Cashback Loyalty Programs".
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  1. James Smith from J. R. Smith Group, October 25, 2018 at 2:48 a.m.

    On the Eddie Bauer program details. Notice how the consumer spend, time frame and reward % is tilted to marketer needs?  Consumers aren't dumb, they can do the math; they also are keenly aware of the list MSRP game, particularly in apparel. It would be interesting to track the number of idle accounts, one-time users, and the like. 

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