Studies have shown that grocery shoppers receiving government assistance, who could benefit most from using coupons, often don’t. So could some extra cash back offers change their spending and saving habits?
The cash back app Ibotta has rolled out new offers available exclusively for SNAP recipients, or participants in the government’s Supplemental Nutrition Assistance Program, with the highlight being a completely free Thanksgiving dinner.
Ibotta quietly introduced its “SNAP Rewards” program back in August, and officially unveiled it this past week as part of its fifth annual Thanksgiving program. This time around, existing Ibotta users who redeem a set number of offers before the end of the month can earn a bonus of up to $40 that they can apply toward everything needed for a Thanksgiving dinner. New Ibotta users who sign up this month can earn 100% cash back on Thanksgiving dinner staples like turkey, vegetables and dessert.
And this year, for the first time, SNAP recipients who are already Ibotta users can get 100% cash back on their Thanksgiving dinner, too.
The Thanksgiving bonus comes on top of the SNAP Rewards benefits that first became available over the summer. The program “provides SNAP-eligible users with exclusive monthly offers and year-round rewards, helping stretch their food budgets further,” Ibotta explains.
Ibotta users who submit a receipt showing a payment method of SNAP or EBT can opt into the program. When they do, they’ll see exclusive offers not available to other users, with potential additional cash-back earnings of more than $60 per year.
“Alleviating food insecurity is a mission near and dear to our hearts at Ibotta,” Ibotta’s Chief Marketing Officer Rich Donahue said in a statement. “Our work to benefit SNAP-eligible users has been in the works for a while now and we are so happy it will be available to Savers during the holidays.”
Several studies have shown that, somewhat counterintuitively, SNAP recipients are less likely than non-recipients to use coupons or take advantage of other price promotions. Doing so could help to stretch their benefits, but many seem disinclined to do so. A 2018 research report found that SNAP recipients are “less likely to buy store brands and redeem discount coupons” and tend to “cut back on bargain-hunting” after receiving their SNAP benefits. A followup report from the market research firm IRI similarly found that “SNAP shoppers are not as deal-driven,” but surmised it was because “lower income households buy on need and can’t wait for a sale” or a coupon.
So will they take advantage of extra cash back offers? Ibotta hopes so.
“According to recent research,” Ibotta said, citing a dunnhumby report released last year, “36% of families in the U.S. are skipping meals due to financial reasons. At Ibotta, we believe Thanksgiving should not be one of those meals. That’s why we’re ramping up our efforts this month to bring holiday meals to more people.”
Ibotta this year has also partnered with Feeding America, “to help even more families put food on the table this season.” From now through Thanksgiving, Ibotta will donate the equivalent of one meal to the hunger relief organization, each time an Ibotta user redeems their first offer of the month.
“Ibotta’s SNAP Rewards program demonstrates their commitment to supporting families facing hunger,” Feeding America’s Senior Vice President of Corporate Partnerships Lauren Biedron said in a statement. “With their additional support this November, Ibotta is helping ensure the Feeding America network can continue providing food and hope to neighbors in need this holiday season.”
The holidays can be a stressful time when money is tight. So this year, the leading cash back app hopes its efforts will result in a little less stress, a little more food on the table and a little more money in the pockets of those who need it the most.
