Forty percent of online shoppers say they have used money-back rewards for a recent purchase. Find out the most popular providers, and more!
Are money-back rewards part of your online strategy? Each fortnight, Power Retail surveys over 1,000 online shoppers to find out exactly how consumer behaviour is changing. What are their expectations when they shop online? And more to the point…are you meeting (if not exceeding) them? In our latest Trajectory Report, we took a deep dive into money-back rewards programs.
Forty percent of online shoppers said they had used a money-back rewards service in the last 6 months alone. For those who had used a money-back rewards program, the majority, 59% said they had used Shopback recently. The second most popular option is Cashrewards, with 47% of money-back users saying they have used Cashrewards when buying online. Honey comes in third place at 22%.
For those who haven’t used a money-back rewards program recently, the main reason is that they simply had no idea they even existed (37%). The perception that it’s an added time or effort is also an issue, with 22% saying this is the main reason they didn’t use a money-back service. Twelve percent say they don’t see the benefit of using a money-back program with 11% saying the rewards aren’t good enough. Taking too long to receive the money is an issue for 10% with 8% saying they have used one in the past and just didn’t enjoy the experience. Apart from awareness, it seems UX is the main reason for lack of uptake.
Source: Power Retail Switched On Trajectory Report #57
IMPACT ON PURCHASE BEHAVIOUR
Do money-back rewards encourage higher spend? Almost half of all respondents (46%) say they spent more on a single purchase because there was a money-back reward offer. Of course, this also means that more than half (54%) say they did not spend more because money-back was offered. It does however show that there is a link between consumers spending more when money-back services are used.
The majority (69%) say they are likely or very likely to shop at an online store they have not purchased from before because there was a money-back reward offer. It does show they money-back services encourage purchase behaviour, trust and incentive to spend online.
Want to find out more? Download Trajectory #57, filled with actionable insights for retailers and brands, and FREE for Power Retail Switched On Members.
PLUS join our fortnightly Market Update, in which we present findings from the most recently published Trajectory Reports. FREE to join (for both Switched On members and non-members), and just 15 minutes! Our next Market Update will take place on Wednesday 16 November at 1 pm, and we’ll be taking a deep dive into Click & Collect, followed by a deep dive into money-back rewards programs on 30 November. Register here.
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