Credit Card Issuers Compete Over Prime Consumers

by Michael Misasi 0

The Shopkick model of incentivizing consumers’ buying behavior in-store through mobile applications is now in play through different variations and one being piloted in the United Kingdom is one work watching.

Shopitize is a mobile application designed to enable a direct-to-consumer program retailers use to offer cash back to consumers who purchase their products. When a Shopitize user’s account reaches five pounds, they receive a payout from Shopitize.

According to Shopitize’s frequently asked questions section of its website, it currently pays out directly to a PayPal account or check. Note the interesting use of PayPal as a repository for digital-cash incentives.

Results, noted below as reported in this article, appear to be almost twice that of paper coupons. According to industry data, even the highest rates of grocery coupon redemption are under 9%. These results tend to validate Mercator Advisory Group’s own consumer research, which consistently ranks cash back rewards as having the highest value to consumers.

From Mobile Commerce Daily:

The app was piloted with 15,000 shoppers in Britain over a three-month period and saw an average redemption rate of 15 percent. It was opened up to the general public and currently features approximately 50 deals with a variety of different brands.

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