Cashback Study 2024: Growing Popularity and Misconceptions

IPSOS STUDY FOR RAKUTEN FRANCE

Paris, June 25 - Purchasing power is a priority for many French people faced with inflation. In the search for effective ways to save money, cashback - enabling shoppers to recoup a portion of their spending - has become widespread in France.

But what about the actual use and perception of this solution by the French? Rakuten France, in partnership with IPSOS, questioned them to understand their habits and reservations regarding this method.

HALF OF FRENCH PEOPLE ACTIVELY USE CASHBACK TO BOOST THEIR PURCHASING POWER

Loyalty programs are firmly rooted in French habits. 87% of French people are enrolled in at least one loyalty program, and 98% of them use at least 1 regularly.

However, loyalty is concentrated on a limited number of programs. Indeed , 78% regularly use fewer than 5 programs, and 32% use only one or two.

At the same time, cashback, already well-established in the United States for many years, is seeing increasing adoption in Europe. Today, cashback is one of the essential methods for maximizing savings: 48% of French people use at least one cashback program .

Cashbackhas become a decisive criterion for 42% when choosing ane-retailer, and is viewed positively by 63% of the French . This figure rises to 70% among young people aged between 16 and 34. They invest most of their earnings in products in the fashion, cultural leisure, home equipment and high-tech categories.

THE VALUE OF CASHBACK EARNINGS IS UNDERESTIMATED BY THE FRENCH, AND IS THE MAIN OBSTACLE TO THEIR TAKING UP CASHBACK

Although the French are interested in cashback, 33% still prefer discount coupons and promotions, which are well known to 94% of them.

What holds the French back the most are questions about the real benefits of cashback. 41% of those who don't want to use it feel they wouldn't really gain financially, while 37% admit they don't know enough about how it works.

Similarly, 48% of the French still doubt the liquidity of rewards, and believe that cashback can only be used on the site that awards it. a further 20% believe that cashback systems still require a paid subscription.

However, once the way it works has been clearly explained and the benefits highlighted, almost half of those questioned (49%) are interested, underlining the importance of raising awareness on the subject.

" Cashback faces many preconceived ideas, butwe'retaking on the challenge of removing the obstacles that still exist.Contrary to certain beliefs, programs such as Club R are free of charge, and offer very substantial cashback of up to 35% of the purchase price. A real boost for French people's wallets," comments Kevin Delli - Head of e-Merchandising & Loyalty & Brand at Rakuten France.

CASHBACK: A DIFFERENTIATING LEVER FOR E-TAILERS, POPULAR WITH SHOPPERS

Far from preconceived ideas about the benefits of cashback, Rakuten France's Club R stands out for its generosity . The program is designed to boost the purchasing power of its members, offering everyone rewards on purchases made from 12,000 partner e-tailers and brands, across all product categories. The system centralizes discounts, in line with French consumers' desire not to multiply their loyalty programs.

Already popular with 13 million members, Club R is free and non-binding. It entitles members to up to 35% cashback on purchases made on the platform. On average, Rakuten shoppers gain nearly 900 euros in purchasing power every year. And contrary to what some French people think, the kitty can not only be used throughout the site, but also transferred directly to a bank account.

" The study shows us that cashback, already positively perceived by many French people, is a real differentiator for brands and e-tailers. By launching our free loyalty program in 2018, we wanted to reward our users with a program that was accessible to all and generous. We are all the more proud to increase our users' purchasing power in the current economic climate, while creating positive network effects for our e-retailers within a single digital shopping mall," concludes Armando Pastor, Marketing & C2C Director at Rakuten France.

METHODOLOGY

The Rakuten - IPSOS study was carried out online among a national sample of 2,500 individuals representative of the French population aged 16 and over.