Cash back reward systems hone in on consumers with focused needs
Trend - As inflation financially constrains consumers, cashback programs from banks and businesses are becoming more popular. Now, some brands are focusing on consumers with greater or more specific needs with these reward systems--including students, caregivers and those struggling with high costs.
Insight - Rapid inflation, price gouging and stagnant wages are impacting North Americans, and more people are looking for ways to reduce their daily expenses in order to manage. Consumers are now turning to discount businesses and increasingly relying on brands that accommodate the barriers they face in order to retain their financial stability (or achieve it).
Insight - Rapid inflation, price gouging and stagnant wages are impacting North Americans, and more people are looking for ways to reduce their daily expenses in order to manage. Consumers are now turning to discount businesses and increasingly relying on brands that accommodate the barriers they face in order to retain their financial stability (or achieve it).
Workshop Question - How could your brand better adapt to the demand for altruistic business models?
Trend Themes
1. Focused Cashback - Cashback programs are becoming more popular as inflation financially constrains consumers, leading brands to focus on consumers with specific needs.
2. Student Rewards Apps - Kora's partnership with Cardlytics to launch Kora Rewards taps into the trend of cashback programs targeting college students.
3. Dollar Store Cash-back Programs - Dollar General's partnership with Ibotta to offer cash-back rewards aligns with the growing trend of discount retailers implementing loyalty programs.
4. Caregiver Credit Cards - DYPER's introduction of the DYPER Card addresses the specific needs of caregivers, providing free diapers and cash-back rewards.
Industry Implications
1. Banking - Cashback programs from banks are gaining popularity as consumers seek ways to reduce daily expenses and manage financial stability.
2. Fintech - Partnerships between fintech companies and cashback reward platforms, like Kora and Cardlytics, are revolutionizing the way college students earn rewards.
3. Retail - Discount retailers like Dollar General are partnering with cashback reward platforms like Ibotta to offer shoppers additional rewards and enhance customer loyalty.
