The bustling world of consumerism transcends the concepts of transactions and purchases. It entails an ecosystem that thrives on the allure of incentives, like cashback rewards and coupons which are instrumental in shaping consumer behaviour and provide retailers with insights uncovering the nuanced dynamics of the consumer market and help them tailor their strategies accordingly.
With a surge in selling prices, consumer purchases are declining. This is where coupons and cashback play a pivotal role in influencing buying decisions. Consumers are increasingly resorting to digital price comparison tools and coupon tracking to plan their purchases in order to maximise savings. A Gartner consumer community survey revealed that over 30% of consumers leveraged these tools to combat inflation. 93% of shoppers used a coupon code or discount code at least once in 2023, as highlighted by a RetailMeNot survey. This acts as a testament to the widespread appeal of saving money.
The excitement fueled by cashback rewards is no different. Research conducted by Rakuten revealed that 68% of consumers feel excited when they receive a cashback. Whether it is a percentage back on credit cards or cash rewards through dedicated platforms, nothing beats the enthusiasm ignited by the promise of getting something back on every purchase. Cashback and coupons act as catalysts for the rapidly growing e-commerce and retail ecosystem in India.
The psychology of saving
Apart from the monetary benefits, cashback and coupons elicit feelings of satisfaction and accomplishment as they tap into the brain’s reward system. This addictive phenomenon can encourage consumers to shop more in order to save more. The amount of discount usually does not play a very important role in shaping the consumer mindset. What matters to the buyers is that they gain something extra while saving money. The perceived value of the discount is greater than its actual monetary worth. This aspect exerts a significant influence in driving purchase decisions and fosters brand loyalty, too.
Monitoring purchase patterns and tracking trends
In the digital era, every click, swipe, and purchase is analysed and capitalised on. Retailers and marketers leverage this data to track consumer behaviour and personalise their offerings accordingly. By monitoring cashback redemption patterns and coupon usage, companies gather valuable insights about what their target consumer prefers, their purchasing habits and the popularity of their products and services. An analysis by Nielsen reported that a rise in coupon redemption for eco-friendly products can be attributed to a growing demand for sustainable options among the consumer segment.
Besides this, demographic data helps marketers tailor their strategies to cater to the interests of diverse user segments. For instance, millennials who are more tech-savvy might be more inclined to use mobile apps for cashback offers, while GenX people might prefer printable coupons.
The savings process is further streamlined owing to the advent of technology. Brands are also leveraging Augmented Reality (AR) to offer virtual coupons and cashback rewards in-store. The advancements in blockchain technology have the potential to revolutionise loyalty programs and reward systems.
The consumer world is evolving at an unprecedented rate, with cashback and coupons at the forefront, acting as steadfast pillars of savings and satisfaction. Enhanced insights fueled by technological advancements open endless possibilities for both consumers and retailers.
(The author is the Co-Founder and Chief Revenue Officer of AdCounty Media)
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