In today’s shopping landscape, value reigns supreme. But navigating the best approach to deliver it can be a puzzle. Enter cashback promotions – a savvy solution that not only delights your customers but also ensures a healthy bottom line for your business.
Research conducted by savi at the end of last year revealed that one in three shoppers are influenced by cashback promotions. We also learned that the cost of living is driving up their expenditure, resulting in cutbacks across all areas of their weekly spending and not just on food. Cashback promotions offer a clear incentive for shoppers wishing to spend less and be rewarded for their purchase choices.
2,000 UK shoppers, savi OnePoll Consumer Survey December 2023
Among the tools that marketers have at their fingertips, cashback promotions have emerged as a versatile and impactful mechanic driving both loyalty and sales across a diverse range of products. Let’s delve deeper into why cashback promotions stand out as a compelling mechanism for brands seeking to foster lasting customer relationships and boost their sales.
1. Instant Gratification and Tangible Rewards
At the heart of cashback promotions lies the allure of immediate gratification. Unlike traditional discounts or loyalty programmes that may require multiple purchases before reaping rewards, cashback promotions offer consumers a way to claim their money back as soon as they have bought an item. This instant benefit not only creates a positive shopping experience but also provides tangible, monetary rewards that resonate deeply with customers. By putting money back into consumers’ pockets, cashback promotions leave a lasting impression and drive repeat purchases.
2. Flexibility and Consumer Empowerment
One of the key advantages of cashback promotions is their inherent flexibility. Unlike discounts or coupons tied to specific products, cashback rewards empower consumers to decide how to utilize their savings. Whether it’s reinvesting in more purchases, saving for the future, or simply putting money back into their wallets, consumers appreciate the freedom that cashback promotions offer. This flexibility not only enhances the perceived value of the promotion but also strengthens the bond between the consumer and the brand.
3. Building Brand Loyalty Through Consistency
Consistency is crucial in building brand loyalty, and cashback promotions offer a reliable means of achieving this goal. By consistently offering cashback incentives, retailers and brands can cultivate a sense of trust and reliability among consumers. Regular promotions signal to customers that the brand values their patronage and is committed to rewarding their loyalty. Over time, this fosters a deep-rooted connection between the consumer and the brand, leading to increased customer retention and advocacy.
4. Harnessing Data for Strategic Insights
Cashback promotions also provide brands with valuable insights into consumer behaviour and preferences. By analyzing redemption patterns and spending habits associated with cashback offers, brands can glean actionable data to inform their marketing strategies and product offerings. They can also legitimately collect valued personal data with which to retarget their customers. This combination of consumer data and insights enables brands to better understand their target audience, personalise promotions, and optimise their overall retail strategy for maximum impact.
Savi has produced countless cashback promotions for some of the world’s favourite brands, and not only in the FMCG sector. In our experience, they work just as well with electrical items and appliances, technology, or beauty products as well as DIY purchases – driving loyalty and sales at the point of sale in both in-store and e-commerce environments. Take a look at our Hasbro cashback case study as a fine example of successful cashback for a non-FMCG brand across several online and offline retailers.
