Paul Bainsford, the IPA’s Director General said “As the cost-of-living crisis really takes hold, consumers are continuing to look to brands to keep their pricing fair. While stretched themselves, brands must ensure they assess their pricing and subsequent marketing strategies accordingly…”
Key insights from the poll, which asked 2,000 adults what they would most like brands to do to support customers during the cost-of-living crisis were that 32% of respondents want brands to reward existing customers’ loyalty, whilst 37% would like more value for money promotions. Our team of experts believe that offering a cashback promotion is the best way to tick all these boxes, helping shoppers to get more out of their budget during these challenging times.
What is a cashback promotion?
Cashback is simply the opportunity for a consumer to claim back a reward, usually cash, after providing proof that they have purchased items that are part of a promotion. Cashback promotions work for almost any type of purchase and the offer can be communicated effectively either online, in-print, instore or on-pack.
Cashback offers are truly flexible and can work on many levels – an incentive to swap brands, a special introductory offer, a ‘try me for free’ or money back guarantee and so on. The rewards need not only be financial – they could be a coupon to try out a new product, a charity donation, or even a subscription to a partner brand’s service.
Without proper care and expertise cashback offers and discounts can cheapen a product’s value and damage customer perception of a brand. But carefully run cashback promotions can increase sales, deepen customer engagement and loyalty, and provide valuable first-party data for your brand.
The benefits
- Create instant stand-out for your brand
- Easy for shoppers to understand and participate
- Brands can control the promotion using time or supply limitations
- Sales increase does not always mean an increase in redemptions
- Rich data and insights can be collected
- Non-cash rewards can create partnership opportunities
It’s as simple as one, two, three, four…
- savi designs the cashback campaign to suit your objectives and sets criteria and parameters via our online cashback platform
- The customer can buy the product anywhere as long as they keep a proof of purchase
- They upload a photo of their receipt to our online platform – it can manage multiple purchases
- savi validates the purchase, updates records, and instructs payment so that the customer receives their reward via PayPal, BACS or otherwise quickly
Learn more about cashback from this case study.
What to watch out for
As with all promotions, cashback can have its drawbacks. There is the threat of fraud, the challenge of estimating redemptions, as well as the process of settling redemptions and rewarding customers which can be complicated. Working with savi means that any difficulties will be planned for and avoided by our team of experts. We have over 65 years’ worth of experience providing marketing transaction solutions for many of the world’s favourite brands and retailers.
From the start to finish, we provide your customers with a seamless cashback experience that will help their budgets stretch a little further, whilst retaining their loyalty to your brand. Discover how savi can help run your next cashback promotion by getting in touch here.
