As retailers gear up for the holiday season, they’re exploring multiple ways to engage shoppers, including offering early deals and discounts.
But there’s another way they can entice shoppers to buy: cash back deals. Consumers love cash back because they get rewarded to shop. According to RetailMeNot’s recent consumer survey of 1000 adult shoppers, fielded in July 2023, 72% of consumers said cash back rewards provide a tangible benefit that enhances the overall shopping experience.
While cash back benefits shoppers, it also provides advantages for retailers in the form of increased discoverability, higher conversions and average order values. RetailMeNot’s fifth annual Cash Back Day, which starts Nov. 2, offers a prime opportunity to kick off the holiday shopping season and drive sales. Here’s how cash back programs can reward shoppers and retailers alike.
Cash Back Programs: A Boon for Shoppers and Retailers
Cash back not only enhances the overall shopping experience, it provides tangible savings at a time when prices are higher and shoppers are increasingly cost-conscious.
Our survey indicates cash back programs drive conversions and encourage shoppers to spend more. Sixty-nine percent of consumers are more likely to make a purchase if there is a cashback offer, while 31% of consumers say they would spend more if there were cashback deals.
Cash back offers also tend to attract younger, more engaged and affluent shoppers — all highly attractive audience segments retailers would love to convert into loyal customers. One out of every two shoppers between the ages of 18 to 35 uses cash back at least once a week for purchases.
Fifty percent of shoppers with a household income that exceeds $100,000 also use cash back for one or more weekly purchases. This group avidly uses cash back — 75% of affluent shoppers actively seek out these deals. Affluent consumers might be more inclined to use cash back because they may be looking for retailers to incentivize them for their higher spend and have more time to capitalize on such offers.
For retailers, this data signals multiple opportunities to engage shoppers this holiday season. Retailers can use cash back to accelerate the path to purchase, nudging consumers who are weighing whether to make a purchase to actually complete a transaction. When consumers shop they want something of value in return beyond the actual product they’re purchasing. Cash back gives them this feeling — 73% of consumers we surveyed said redeeming cash back is like getting extra money back in their pocket. Cash back offers drive sales and user demand at scale by more than doubling conversions, increasing consumers’ purchasing power at a time their dollar doesn’t go as far.
Cash back offers also increase discoverability for retailers. Our previous research indicates 85% of shoppers are willing to try new brands or products with an irresistible deal. Price now supersedes brand loyalty for many shoppers, so cash back gives retailers the opportunity to attract new customers who view cash back as a low-risk way to experiment with new brands.
Nearly a third of shoppers are willing to spend more when cash back is in play, so retailers also have a chance to boost average order values by getting consumers to add more items into their shopping carts or purchase at a higher price point because they know they are getting rewarded in return.
As the holiday season gets underway, shoppers and retailers can take advantage of Cash Back Day to drive savings and sales.
Kickstart Holiday Shopping and Promotions on Cash Back Day
Cash Back Day started in 2019 as an opportunity for shoppers to kick off their holiday shopping with exclusive cash back offers. What used to be a 24-hour campaign has now evolved into three days of cash back offers, giving shoppers plenty of time to capitalize on great deals and retailers more opportunities to engage shoppers with the best and deepest cash back offers.
This year, Cash Back Day will run from Nov. 2-4. The annual holiday shopping event will provide hundreds of rich cash back offers along with stackable deals that allow consumers to layer on other coupons and discount offers for even more savings. Shoppers can receive up to 30% cash back from top brands like Neiman Marcus, Adidas, Madewell, e.l.f. Cosmetics, and more.
Awareness of Cash Back Day is particularly high among younger and affluent consumers, so retailers can seize this shopping event to offer money-saving opportunities to these highly engaged shoppers and those with bigger holiday budgets.
This holiday season, shoppers are on the hunt for good deals. Cash back allows them to garner even more savings and get more value for every holiday dollar they spend. For retailers, this also could translate into a more engaged audience and higher sales — making cash back a win-win all around.
Visit retailmenot.com/cashback to see all the deals starting Nov. 2.
See also: Executive Insight: Guard Your Gold: Using AI To Retain Valuable Customers
