Shopping perks boost spending amongst first-time buyers, report says

Shoppers using rewards are 18% more likely to buy again.

Consumers who use a reward on their first purchase are 18% more likely to buy again within two quarters, and spend 28.4% more than those who bought without an incentive.

According to Bain & Company and Fetch Rewards, repurchase rates were highest in high-frequency categories, as snacks recorded a 51% return rate among rewarded first-time buyers, whilst dairy followed at 47%.

Even in lower-frequency categories such as home improvement, where repeat purchase cycles are naturally longer, rewarded buyers still generated a positive spending lift of 32%.

"By increasing both repurchase rates and spending, incentives can strengthen customer value across a wide range of categories,” the report stated.

It also noted that first-time buyers drove a 20.7% sales uplift over 12 months versus a control group, and that each consumer packaged goods brand achieved an average net return of 7.2 times its initial reward spending within the first three months of a new customer relationship.

However, not all incentive spending delivers equal results. The report noted wide variation in returns across brand types, with insurgent brands recording returns ranging from 2.7 times to 11.8 times, depending on how rewards were designed and targeted.

The firm advised brands to align incentive structures with specific customer segments rather than applying blanket promotional strategies.

The report argued that measuring repurchase behaviour separately from initial acquisition is essential to understanding true programme value.

“Without that distinction, brands risk misreading campaign performance and misallocating promotional budgets toward customers who would have purchased regardless of the incentive,” it added.