Ifeelgoods Study Demonstrates That Reward-Based Promotions Outperform Discount-Based Promotions For Brand Equity & Purchase Intention
Survey offers empirical evidence that, despite perceived popularity of discount-based promotions, reward-based promotions actually result in higher purchase intention (short-term) as well as greater brand equity (long-term).
Palo Alto, September 1st– Ifeelgoods, the leading platform for setting up turn-key reward promotions and campaigns, announced today the results of a new study that measures the impact of reward-based promotions against traditional discount-based promotions with regard to brand equity and purchase intention. With over 1,000 consumers surveyed worldwide, one of the study’s most compelling findings was the fact that reward-based promotions outperform discount-based promotions in both brand equity and purchase intention. The study shows that reward-based promotions are even more efficient compared to discount-based promotions from brands whose consumer base is mostly composed of frequent shoppers and/or utilitarian shoppers.
Some of the most important key findings of this survey include:
- Reward-based promotions exceed performance of discount-based promotions by over 21% for positive brand image creation
- More specifically, reward-based promotions have been shown to outperform discount-based promotions by over 42% with regard to brand differentiation
- Reward-based promotions also outperform discount-based promotion by over 13% for purchase intention.
“In today’s highly competitive landscape, brands are competing against one another on a ‘discount race’ to try and propose the cheapest prices to their consumers. However, consumers have come to expect more personalized promotions and would better value more relevant rewards,” says Michael Amar, Ifeelgoods CEO & co-founder. “This study shows that implementation of reward-based promotions, rather than more traditional discount-based ones, yields better performances in both the short term including higher purchase intention as well as in the long term through an increase in brand equity.”
This white paper includes key recommendations for marketers looking to leverage these insights when crafting future promotions.
This study relied on an analytical, research-based methodology in order to more quantitatively assess purchase intention and brand equity. The entirety of the survey and methodology is also detailed in the study.
For more about specific findings on this study, download the Ifeelgoods Rewards-Based vs. Discount Based Promotions Whitepaper.
Ifeelgoods provides a frictionless platform that enables marketers to instantly reward their audiences through a variety of different solutions including e-commerce options, CRM, social media, shopper marketing, loyalty programs and more. Consumers can directly receive their rewards through over 100 integrated apps including Facebook, Mailchimp, Salesforce, SurveyMonkey, Paypal and Zendesk, with gifts delivered through Ifeelgoods’ rewards catalog. With over 100,000 different rewards, the catalogue features diverse content ranging from movies, songs, games and apps to newspaper subscriptions, gift cards and beyond. To learn more about how brands like Walmart, Gap, L’Oreal and over 300 other clients have used the Ifeelgoods platform to boost customer acquisition and retention, go http://www.ifeelgoods.com/.