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.