With food prices rising all the time, consumers would most like to make a plan to spend less of their hard-earned money to put food on the table, and everyone is looking for new ways to save.
Loyalty programs and coupons make a difference to your grocery bill, but it’s time-consuming to keep track of where you can save. Dov Slowatek, CEO and founder of the South African platform, SavvySaver, which ensures that you get your cash back on savings, has made a plan to help consumers.
He says the cost of living crisis is causing a major shift in consumer behavior and recent data shows that consumers are making use of new cost-saving strategies, such as refund and discount platforms, as food prices and essential household items are reaching alarming heights these days.
“Consumers have reached a breaking point in trying to stretch their budgets to accommodate rising costs and are looking for tangible budget-friendly remedies to bridge the affordability gap.”
According to PricewaterhouseCoopers (PWC), almost 99% of consumers intend to adopt new habits that will help them save money, while the Nielsen Global Outlook Report 2023 say that the cost of living crisis has driven consumers to look for discounts (49%), chase promotions (36%) and buy in bulk (50%), while 56% are keen to take advantage of loyalty schemes.
“The SavvySaver refund program has seen a sharp increase in membership, along with rising food costs, with members receiving thousands of rands in cash back,” says Slowatek. This refund platform has experienced a 230% increase in consumer sign-ups over the past three months, highlighting the severity of the effects of food price inflation on the average consumer.
Consumers are being hit from all sides, from the 13.6% annual increase in food and non-alcoholic drink prices in February this year – the highest reading since April 2009, to the looming technical recession. Consumers struggle to put food on the table.
According to the annual results of the Truth & BrandMapp survey that highlights ongoing loyalty trends, consumers especially want the cashback loyalty benefits. Slowatek says unlike rewards from credit and debit cards, cashback rewards are a 100% cost-free offering to consumers, offering them shopping flexibility and a way to manage financial constraints.
Consumers are rewarded at all major retailers in a way that differs from traditional retailer loyalty card programs. He says the process is quick and simple: consumers upload a photo of their receipt on the SavvySaver app or online platform and can immediately receive reimbursement for a wide range of items provided by brand partners on the app.
“Cashback rewards allow consumers to get cash back while shopping for items they would have bought anyway. This means a cash injection, which gives consumers more mileage on their spending capacity and relieves them of the shopping pressure of rising costs.”
Consumers can also support charity through campaigns with SA Harvest, a non-profit organisation, which supplies food to organizations across South Africa that feed the needy. Donating your refund is also in the pipeline.
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