The average American consumes more than 290 chicken wings each year – but due to the rapid rise of inflation and downward pressure on supply chains, the current cost of a plate of wings is anything but average. What’s more, pent-up inflation will continue to make expenses skyrocket, which in some locations could drive the cost of a plate of wings close to $34.
Consumers are struggling with new and challenging prices for their everyday items each time they step foot into a grocery store, pull into a gas station, or place an online shopping order. One-quarter of Americans are even delaying their retirements to help combat current economic challenges. As we’ve shared over the past few months, today’s price increases are only a glimpse at what some fear is a long-term trend.
Regardless of the pricing forecast you follow; consumers should prepare to face the financial pinch for the foreseeable future. The Consumer Price Index (CPI), a benchmark for gauging inflation cited in headlines and by economists, has been surging. Prices for food rose 10.1% in May compared with a year earlier, the biggest gain since 1981. There were record increases for chicken, fresh seafood, and baby food.
In response to this economic uncertainty, providing the most value each time you deliver a financial reward is a perfect way to incentivize behavior. And providing value is something Amazon excels at. The company is annually ranked as the cheapest place to shop (with Walmart rising to a close second). Consumers also flock to Amazon for the range of items they can purchase, including more competitively priced chicken through the Amazon Fresh platform.
Though Amazon doesn’t have weekly circulars like many brick and mortar stores do, it routinely routes consumers to trending items relevant to their searches that are a good bargain. The nature of Amazon’s dynamic pricing (prices that move up and down based on demand) also allows for frequent reductions in the daily cost of everyday items.
Does that mean the typical consumer now prefers to receive an Amazon rewards card over a Virtual VISA or one linked to their favorite brands? There isn’t a hard and fast answer. For some, the range of locations where they can redeem the latter will vastly outweigh the impact of paying lower prices on Amazon. For others, especially in today’s economic climate, getting more “bang for the buck” is the preferred route. In either scenario, we always emphasize the impact that convenience has in delivering a customized and engaging experience for rewards recipients..