AUSTIN, Texas, Oct. 23, 2018 /PRNewswire/ -- Today, Dosh, the fastest growing card-linked offer marketplace that finds cash for consumers, published new research revealing consumers require new methods of motivation to earn their loyalty. The Dosh Consumer Loyalty Survey, which surveyed 3,350 Americans, sheds light on consumer shopping decisions and validates that cash back programs are better positioned to increase in-store traffic and average order spend, compared to traditional loyalty programs.
As U.S. consumer spend continues to rise, with the National Retail Federation (NRF) predicting 2018 retail sales growth between 3.8% and 4.4%, merchants are searching for unique ways to acquire and retain a strong, loyal customer base. As a data-powered two-sided marketplace, Dosh puts wasted advertising dollars directly into consumers' pockets in the form of card-linked offers, creating high quality relationships between merchants and customers that keep shoppers predictably returning.
"Since implementing card-linked offers through Dosh, our customers are shopping with us more frequently and with higher average order value," said Alex Ok, President, Forever 21. "With the 'surprise and delight' factor of a cash back strategy, shoppers are more satisfied and inclined to return and spend more knowing they will be rewarded."
As advancements in retail technology improve the shopping experience, consumers expect loyalty programs to evolve to better meet their needs. Consumers crave direct incentives to shop with specific merchants and be rewarded for loyalty automatically. Dosh's survey revealed traditional retailer loyalty programs are falling flat among today's consumer, who no longer see the value in exclusive events or points-based programs.
"Retailers are wasting billions of dollars advertising their complex loyalty programs," said Brad Brodigan, President and COO, Dosh. "Consumers are confused by all the different loyalty program requirements. However, our research shows what drives consumers' motivation is simple: cash."
The Dosh Consumer Loyalty Survey discovered: Current loyalty program approaches are no longer resonating with consumers: Overall, consumers are struggling to find real value in merchant loyalty programs. Tiered programs, merchant credit cards, and special events lack the concrete value and immediacy that today's consumers crave. Key findings include:
Currently, 48% of consumers don't feel that major retailers value their loyalty.
91% of consumers feel little to no reward from tiered reward systems, and 89% of consumers feel little to no reward from merchant credit cards.
Only 43% of Gen Z shoppers report signing up for an in-store rewards program (compared to 53% of millennials and 57% of Gen X).
83% of consumers say they feel little to no reward from invitations to special events from a brand.
Cash is a core motivator: Although traditional loyalty programs are losing their appeal, consumers still want to feel rewarded for their purchases. Moreover, they want to feel rewarded quickly without requiring any effort to redeem their reward. Key findings included:
83% of respondents said cash makes them feel rewarded.
At least 1 in 3 respondents said that they would switch to a merchant that provides cash back over one that does not.
60% of respondents reported they would give up social media for the day in exchange for $20 in cash.
The opportunity for merchants to leverage mobile loyalty programs: Consumers are increasingly using their smartphone at every point in their path to purchase, meaning loyalty rewards must be activated on mobile as well. Key findings include:
Over two-thirds of respondents have used a coupon in the last year, but only 3 in 10 are using their phone to get cash back on everyday purchases.
When it comes to purchasing platforms, nearly 50% of respondents on average leverage smartphones to shop. Breaking down this average by generation, we see this trend particularly significant among Gen Z, millennials and moms:
68% of Gen Z respondents report they frequently purchase items using their smartphone.
69% of millennial respondents report they frequently purchase items using their smartphone.
70% of moms report they frequently purchase items using their smartphone.
Only 31% of baby boomers purchase items using their smartphone.
More than half of respondents (55%) report having at least one mobile shopping app connected to their bank account, debit or credit card.
Dosh Consumer Loyalty Survey Methodology The survey was conducted online by YouGov on behalf of Dosh from August 24, 2018 to September 6, 2018 among 3,350 consumers ages 18 and older in the United States. The first 1,000 responses were balanced to be nationally representative by age, gender, and region.
About Dosh Dosh is a transformational consumer financial services platform and card-linked offer app that efficiently shifts millions of wasted advertising dollars directly into the pockets of deserving consumers in the form of cash back, while helping businesses succeed by creating valuable relationships with their customers. Visit www.doshforbusiness.com for more information.