Inflation Driving Consumers to Seek Cash Back Rewards
Consumer sentiment has fallen due to the economic impact brought on by inflation. When this happens, businesses tend to cut costs and consumers look for ways to save. One of the first things to go is typically marketing. However, marketing during a down market can offer tremendous growth opportunities while your competitors cut back.
Not every marketing campaign is equally effective. Marketing in a down market should be tactical. Choose marketing strategies that reflect directly onto your bottom line. Provide value to your customers during these difficult times. Choose strategies that can specifically target your desired audience.
According to a recent survey, the vast majority of consumers are looking for savings right now, and they are willing to brand switch for the right offer. In addition to influencing where to shop, rewards and incentives also have an impact on sales conversion rates (the percent of online shoppers which complete a purchase.) The survey reveals that 79% of respondents are more likely to complete a purchase when they earn cashback rewards.
The data regarding consumer decision-making of where to shop and the impact of rewards on sales conversion is incredibly telling: the availability of rewards and incentives directly and positively affects consumer behavior at both the top of the purchase funnel (deciding where to shop) and the bottom (completing a purchase). Cash back marketing versus other discounting options is particularly effective because not only do you get the benefit of influencing consumer buying behavior, but it also protects your brand since the consumer is still paying full price for your product.
LuckyDiem’s cash back AdTech platform offers the benefits of performance-based advertising, that delivers real-time, guaranteed ROIs and ROAS. Every single dollar of advertising is tied to a purchase. When coupled with a cash back incentive that consumers are seeking, brands can now wield a truly powerful marketing tool to not just trudge through the economic downturn but leverage it to grow sales and market share.