Paris, June 25, 2024 - Purchasing power is a priority for many French people, who are faced with inflation. In the search for effective ways to save money, cashback - enabling shoppers to recoup part of their expenses - is becoming increasingly popular in France.
But what about the actual use and perception of this solution by the French? Rakuten France, in partnership with Ipsos, questioned them to understand their habits and reservations about this method.
Half of French people actively use cashback to boost their purchasing power
Loyalty programs are firmly rooted in French habits. 87% of French people are registered with at least one loyalty program, and 98% of them use at least one regularly.
However, loyalty is concentrated on a limited number of programs. Indeed, 78% regularly use fewer than five programs, and 32% only one or two.
At the same time, cashback, already well-established in the United States for many years, is seeing increasing adoption in Europe. Today, cashback is one of the essential methods for maximizing savings: 48% of French people use at least one cashback program.
Cashback has become a decisive criterion for 42% when choosing an e-merchant, and is viewed positively by 63% of the French. This figure rises to 70% among young people aged between 16 and 34. They invest most of their earnings in products in the fashion, cultural leisure, home equipment and high-tech categories.
The value of cashback gains is underestimated by the French, the main obstacle to cashback take-up
Although the French are interested in cashback, 33% still prefer discount coupons and promotions, which are well known to 94% of them.
What holds the French back the most are questions about the real benefits of cashback. 41% of those who don't want to use it feel they wouldn't really gain financially, while 37% admit they don't know enough about how it works.
Similarly, 48% of French people still doubt the liquidity of rewards, and believe that cashback can only be used on the site that awards it. A further 20% believe that cashback systems still require a paid subscription.
However, once the way it works has been clearly explained and the benefits highlighted, almost half of those questioned (49%) are interested, underlining the importance of raising awareness on the subject.
“Cashback faces a number of preconceived ideas, but we're taking on the challenge of removing the obstacles that still exist. Contrary to certain beliefs, programs such as Club R are free of charge, and can recover very substantial sums - up to 35% of the amount of purchases. A real boost for French people's wallets,” comments Kevin Delli, Head of e-Merchandising & Loyalty & Brand at Rakuten France.
Cashback: A differentiating factor for e-merchants, popular with buyers
Far from preconceived ideas about the benefits of cashback, Rakuten France's Club R stands out for its generosity. The program has been designed to boost the purchasing power of its members, offering everyone rewards on purchases made from 12,000 partner e-merchants and brands, in all product categories. The system centralizes discounts, in line with French consumers' desire not to multiply their loyalty programs.
Already enjoyed by 13 million members, Club R is free and without obligation. It allows members to earn up to 35% of the value of purchases made on the platform. On average, Rakuten shoppers gain nearly 900 euros in purchasing power every year. And contrary to what some French people think, the wallet can not only be used throughout the site, but also transferred directly to a bank account.
“The study shows us that cashback, already positively perceived by many French people, is a real differentiating argument for brands and e-merchants. By launching our free loyalty program in 2018, we wanted to reward our users with a program that is accessible to all and generous. We're even prouder to increase our users' purchasing power in the current economic climate, while creating positive network effects for our e-merchants within a single digital shopping mall,” concludes Armando Pastor, Marketing & C2C Director at Rakuten France.
Methodology
The Rakuten - Ipsos study was carried out online among a national sample of 2,500 individuals representative of the French population aged 16 and over.
About Rakuten France
As a key player in French online shopping and a circular economy pioneer, Rakuten France is a generalist e-commerce platform offering new, used and refurbished products sold by professionals and individuals. Driven by an optimistic vision of e-commerce offering the most generous loyalty program in France, Club R, Rakuten boosts the purchasing power of more than 13 million members thanks to a unique cashback model rewarding online purchases.
Through many online services, Rakuten France also supports more than 12,000 professional sellers and partners in their digitalization. Among these services is Rakuten Fulfilment Network launched in 2022 which gives retailers access to a global network of experts providing the simplest, most efficient and economical response to their logistics requirements.