Accentuate Time Back from Cashback

Users of online cashback services click a button to access the manufacturer or retailer website they’re seeking. Going through the cashback button process is an extra step. The payoff is a small rebate on each purchase, made possible because the cashback service receives a fee from the marketer for the referral.
     Getting money returned is nice. Still, New Mexico State University and University of Scranton researchers find that the fundamental appeal of cashback button shopping for users is the time saving. Saving time on finding the best price. When shopping with the button, a consumer can quickly search through the information and filter deals on options from a range of supply channels. Note how for that consumer, the best price might not be the lowest price. The manufacturer’s reputation, such as for quality or prestige, or the retailer’s policies, such as for timely delivery or accepting returns, makes a difference.
     The implication of these findings for cashback services is to accentuate the timesaving advantage in advertising. Among the implications for retailers are to include price searching capabilities on their own websites and to otherwise acknowledge the high value of time for the online shopper.
     The researchers preface their report about all this by pointing out how cashback sites such as Rakuten, Ibotta, and Shopkick have been found to boost the average online order value by about 46%. Behind this, the researchers suggest, is the prior evidence that saving time leads to greater shopping enjoyment and less shopping cart abandonment.
     The study is a reminder that time and money are psychologically different for consumers. Research findings from Hong Kong Baptist University and Chinese University of Hong Kong suggest that a marketer is wise, under certain circumstances, to emphasize to a shopper the time savings the shopper could experience in selecting, using, and maintaining a product or service more than emphasizing cost savings in purchasing or using the item:
     Consumers consider time more valuable than money when thinking how time is perishable. If you don’t use time now, it’s gone forever, but money not used now can be used later. In fact, if invested properly, the money gains in value. This appeal also works well when consumers are thinking of time as more subject to having a fixed supply than does money. There’s only so much time available, but a person can use credit to expand the funds available today.

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