Little indulgences and a great experience
The conversation turned to how—even in uncertain times—consumers still want to treat themselves. Lauren Newman, chief revenue officer at Button, said consumers weigh into what she calls the “grief to dollar ratio.”
In other words, a consumer may know something is expensive, but there are other considerations when purchasing, like, “Is it really going to impact my life? And how much do I use this? What is the necessity?”
Willemsen added that rewards programs shine by playing into that desire to treat yourself, since Fetch users often redeem points for small delights they don’t usually buy.
Rewards can build relationships that outlast the offer
For brands, understanding why consumers buy is only part of the equation. The next challenge is using behavioral data to offer something relevant enough to influence their decisions.
Because Fetch users earn points for every receipt they upload, Willemsen shared that the platform sees what they buy across categories. That information helps brands tailor rewards around specific goals, like attracting first-time customers or encouraging repeat purchases.
That connection between rewards and loyalty sparked a discussion about shoppers switching to less expensive duplicates. Newman shared that she often sees consumers choosing dupes, driven by challenger brands paying higher commissions to creators and cashback platforms. That said, Willemsen noted that many shoppers still splurge on brands they have a relationship with, like a preferred coffee.
Amie Owen, chief client officer at Flywheel, saw truth in both points. In her experience, consumers often switch brands, like a shopper choosing store-brand pain reliever over Tylenol. But consumer decisions vary by category and come down to how brands message the audiences they want to reach. “Branding still matters,” Owen explained. “But by the same token, it depends on what that category is, and who you’re reaching.”
