Consumers unwilling to wait for rewards
10/02/2009

Consumers are no longer prepared to wait for incentives such as cash back and the return from money reward schemes built up on credit cards, instead searching online at sites such as VoucherSeeker (http://www.voucherseeker.co.uk/discount-vouchers) for voucher codes which ensure instant discounts and money off items.

Online PR News – 02-October-2009 – – Discount voucher sites such as VoucherSeeker offer users discount codes, vouchers and promotional codes for money off products. Increasingly, consumers are turning to voucher code sites such as VoucherSeeker as a way of saving money.

Research by Granby Marketing Services found that 60% of people questioned think an immediate reward is the most important aspect of a promotion, whilst 39% of people would be interested in a price discount. 87% of consumers would switch from their usual brand in favour of a price discount promotion such as discount vouchers.

“Users like discount code sites such as VoucherSeeker as the discounts are instant. Whether they’re searching for a Vodafone promotional code (http://www.voucherseeker.co.uk/file/8c07f9b2387a79aa4860f829cdf713e7/vodafone-promotional-code.html) or Currys discount codes (http://www.voucherseeker.co.uk/file/a62ac26940c49940f7f8da1eabd901e1/currys-discount-codes.html), the discount the user receives is instant and they know they’ve made a saving.” States VoucherSeeker Director, Neil Ainsworth.

Consumers no longer want to shop without rewards. Research by Sainsburys Finance found that two thirds of UK credit cards now offer card holders some form of reward in order to encourage spending. Consumers are more aware of the rewards they can get with their credit cards also, especially during times of recession.

Research by TNS Consumer Credit Card Programme Study has found that cash back programmes rose in popularity from 57% in 2007 and 61% in 2008. Not only this, but the cash back reward was the most popular type of rewards programme across all age and affluence ranges in the group studied.

However, Sainsburys Finance also reported that credit card rewards being offered are declining in the UK credit card industry. This could be one reason why consumers are turning to vouchers from online sites such as VoucherSeeker for their discounts.

There are reasons why some consumers do not claim rewards on their credit and loyalty cards. 17% of people questioned in the study stated that the reason for not claiming rewards was that the financial value of the rewards was too small. Although consumers were getting rewards for using their cards, this was not a big enough reward to justify the spending needed to earn them. This accounted for an additional 7% who said they simply could not be bothered. A further 3% of those questioned stated the redemption process takes too long, whilst 4% claimed it was too difficult to redeem rewards earned or that there were great restrictions on the rewards earned.

Consumers no longer desire traditional loyalty points such as airline miles or rebate programmes, but are instead choosing credit cards which offer cash back rewards. This card is then considered by consumers as the primary card to use and is used more often than other cards with different or no incentives.

This suggests that to consumers, cash back schemes on credit cards and promotional codes from online voucher codes sites such as VoucherSeeker are more important than, for example, collecting air miles. It seems that people are seeking immediate benefits that impact quickly and directly on cash flow. Maybe consumers simply want to get rewarded for the money they spend with money back so that they have no restrictions on what to spend the money on.

Whatever the reason, the credit card rewards market are reassessing how they give consumers rewards in order to cater for these needs. As consumers become more demanding in terms of what they want from credit card companies, credit card companies are being met with more competition. In order for card issuers to survive in the current market, they will need to offer more of what consumers want and think is important, in order to improve consumer loyalty, sales and retention.

Consumers are beginning to realise that the savings that users with discount vouchers from sites such as VoucherSeeker make are more instant than those built up over a period of time. This then makes consumers more demanding over the types of rewards they receive and more impatient when having to wait for their discount to be received. According to the IMRG Capgemini e-Retail sales Index, for the month of August 2009 alone, UK shoppers spent £3.8 billion online. This figure is 16% higher than August 2008 and shows the growing importance of online discount codes and how they fit into the whole purchasing process.

Consumers are no longer prepared to wait for rewards, instead wanting instant discounts. Therefore it is inevitable they shall turn to sites such as VoucherSeeker (http://www.voucherseeker.co.uk/discount-vouchers) for discount codes in order to ensure they receive instant discounts on the products they need. Consumers are also more demanding in terms of what they want from rewards. With regards to credit cards, consumers are choosing to get cash back rewards, instead of air miles or club points.

About VoucherSeeker
http://www.voucherseeker.co.uk is a leading UK voucher codes website. It features all the latest vouchers, voucher codes and discount codes from a wide range of shops and top brands. Users can use the site to find the latest discount vouchers and promotional codes to save money on many products and services. VoucherSeeker also provides its users with details of all the latest sales and promotions.

For further information, please contact Deborah Read at VoucherSeeker: email: deborah.read@clickangel.co.uk direct line: +44 113 380 0891.

VoucherSeeker® and ClickAngel® are registered trademarks of ClickAngel Ltd. All other trademarks are the property of their respective owners.