Does CBA’s move signal a new front in customer loyalty?
The Commonwealth Bank has followed other financial institutions in offering tailored cashbacks targeted at food and drinks through a partnership with Menulog.
To support customers and drive more business for local restaurants, CBA and Menulog will offer CommBank Rewards customers $15 cashback when they spend $30 or more using their CBA credit or debit Mastercard when they activate and redeem the offer.
It is now available and customers can activate the offer in the CommBank app and redeem by 14 June 2020
“CommBank Rewards is designed to give customers relevant and personalised offers for what they regularly spend their money on,” CBA executive general manager Everyday Banking, Kate Crous, said
“As Aussies continue to stay home during this period a big part of their daily life is around meal time, and accessing food safely and easily by ordering online.”
The move follows research commissioned by the bank, which revealed that the most notable shift in consumer spending habits is in the food and drink category.
The research also revealed the top changes in consumer behaviour, which included significant increases in Aussies using contactless payments (46 per cent), cooking meals from scratch (42 per cent), spending time unwinding and slowing down (42 per cent), and shopping online (27 per cent).
These preferences were further reinforced in how CBA Mastercard customers actually shopped.
In the four weeks to May 9, these customers increased the number of online takeaway and food delivery purchases by 52 per cent over the same time last year.
Similarly, the number of online grocery purchases increased 37 per cent, with purchases at liquor store increasing 72 per cent.
Other financial institutions have also moved to offer cashbacks in the food and drink category.
Most notably, ING offered free Uber Eats delivery to customers while customers of American Express can currently access special offers for supermarkets and food delivery.
“RFi Group data shows that consumer use of debit and credit cards has increased over the last 12 months, and typically when we test different incentives to encourage consumer use of card products or to reward customers, cashback is seen as highly favourable,” RFi Group client insights manager Anna Shaw said.
“Given that COVID-19 has led to reduced income for many Australians, particularly younger consumers or those who are casually employed, receiving cashback on food delivery services is likely to be valued by a number of customers,” she added.