In the old days, consumers would find a brand that did what it advertised: perhaps Arm and Hammer Advance White toothpaste really made their teeth as white as snow. In the absence of Arm and Hammer failing or a dramatic price disparity from a branded competitor, it wasn’t uncommon for that product to earn a place in the bathroom vanity of that home for the next ten to twenty years.
This kind of devoted consumer is not as easily attained today. According to a new survey of 53,868 people conducted by Influence Mobile, only 3-in-100 consumers said yes they would stay loyal to their top brands, if offered cash and/or point back incentives for switching to a competitor. This might lead you to ask - what are cash-back apps successfully doing that is contributing to the erosion of consumer loyalty among the most esteemed brands?
Consumer’s demand flexibility
Today’s consumers are constantly bombarded with massive advertising campaigns sharing the latest and greatest products. They can’t scroll through social media, drive down the street, or even stream their favorite music without being exposed to an ad telling them confidently, “YOU NEED THIS PRODUCT.” Since today’s consumers are aware of the wide array of choices available to them, it’s no surprise they no longer want to be tied to a single brand or store. Instead they desire a loyalty platform that is highly flexible and allows them to earn cash-back every time they shop.
When asked, “In the past year have you tried out new brands just for the purpose of trying something new?” 88 percent of respondents answered yes, while only 12 percent responded no. This new desire to explore alternatives has allowed these rewarded shopping apps/websites to gain traction over the last decade.
These types of loyalty programs also provide flexible redemption options. Many allow you to have cash sent directly to your bank or paypal account, or simply choose from a wide array of gift cards. When asked, “How would you prefer to redeem your points?” 36 percent responded Amazon gift card, 30 percent responded PayPal cash, 20 percent responded Visa gift card, 10 percent responded Walmart gift card and the other 4 percent responded Other.
Consumer’s are Hungry to Save
With gas prices and inflation at a record high, people are desperately looking for ways to stretch their budgets. Consumers are growing tired of witnessing the products they purchased just a month go up in price while also shrinking in size. That’s why it was no surprise that when asked, “If you found a product that had a lower price and better value, would you try it out?” 98 percent said yes and only 2 percent said no.
Needless to say, brands are in for an unpleasant surprise if they expect the consumer to continue buying their products without reevaluating their strategy. Consumers who have been purchasing the same product for years are now looking into alternative ways to save cash wherever they can. When asked, "What statement best describes your purchasing decisions" 60 percent said they buy based on price, rather than brand name. 25 percent said they buy many brands, rather than the same one. Only 15 percent said they buy the same brands, rather than other brands.
The future of loyalty
The awareness of rewards in the digital space has continued to rise over the last several years. When asked, "Are you familiar with apps/websites where you can earn cash-back or points when you make purchases?" 79 percent said yes and only 21 percent said no.
With the growing popularity of cash-back apps, it's time retail brands meet consumer demands. Shoppers get a clear deal out of rewards and retailers benefit in ways only just being explored. To view more data from Influence Mobile’s recent survey, visit the full press release here.