More shoppers will avoid purchasing full-priced items this year and spend less on non-essentials, according to a survey by financial technology platform, Wildfire Systems, and the research firm, Big Village.
Uncertainty about the economy is reportedly affecting shopper habits, who’ve declared their intentions to cut back on extras like travel and dining out, compared to behavior in previous years. In this environment, rewards programs are taking center stage, and cashback programs dominate the list.
A full 74% of survey participants declared greater interest in earning cashback rewards over using online coupons, in consideration of inflation and economic uncertainty. And 55% of participants said they expect to earn cashback rewards and coupon codes from their credit card companies for online purchases.
Looking at the data from an age breakdown perspective, a majority of millennials (51%) and 43% of Gen Z, prefer cashback programs over coupons. Only 27% of Baby Boomers say they employ neither option to save online, as did 13% of Gen Z and 9% of Millennials.
Generic brands and discount retailers are playing a larger role as well, with a significant 79% of survey participants saying they’re now purchasing more generic brands over premium ones. Among consumers who already shop at discount retailers, 40% anticipate doing even more so in the year ahead.
The vast majority of shoppers surveyed (73%) already use at least one money-saving method and intend to continue or increase the practice this year. Favored tactics include cashback rewards and browser extensions, followed by coupons and online discount codes, loyalty programs, and shopping at discount retailers.
The message is clear: consumers are looking for discounts and incentives, along with organizations who provide them. And shoppers may look elsewhere if you fail to meet their expectations in the current market environment. How will this trend play out for high end retailers trying to navigate a hesitant consumer public? Read more here.