Cashbacks in retail: effective marketing strategies and successful campaigns
There’s no denying it. Cashbacks are incredibly powerful in the retail sector. What makes the match so perfect? Find out here. The story of targeted marketing strategies, successful campaigns and innovative ideas. All stimuli for customer loyalty and the growth of your brand.
The retail market is in continuous movement. It’s only natural that companies want to make the most of this by attracting new clients while maintaining existing ones. A popular instrument for doing this is a cashback action. In this blog post, we take a hard look at the impact of cashback actions on the retail sector with the help of facts, recent European data on the use of cashbacks and examples of successful campaigns.
Cashback actions are the ideal approach if you would like to reward or build up brand loyalty for your company. According to a study by the Centre for Retail Research (CRR), they’ve increased by at least 10% across Europe in the past year. This clearly underlines their importance as a marketing tool.
However, cashback actions are not only interesting if you want to boost your sales. They noticeably strengthen the link between customer and brand. The feeling of getting money back is massively appreciated by customers, but brands also benefit from it due to the positive associations and good reputations it results in.
Examples of successful cashback campaigns
Would you like a bit more convincing? It’s time for a few concrete examples of campaigns that have proven their worth.
Samsung launched a cashback action for the Galaxy S21 series. With the purchase of a Galaxy S21 smartphone, customers received up to €200 back. This action resulted in a strong increase in sales. Samsung saw its share of the smartphone market increase. They also attracted new customers at the same time.
Nespresso ran a cashback action for new customers who purchased a coffee machine. In this case, it was in the form of coffee capsules for the new machine, with a total value of €80. This campaign didn’t just boost the sales figures for the coffee machines. It also saw an increase in the use of Nespresso capsules. Both were conducive to building up a loyal customer base.
Cashbacks as the stimulus for sustainability
By implementing cashback campaigns, brands can instil sustainable behaviour in their clients. Examples include rewarding people with cashback when they hand in old devices or clothing. It also encourages the recycling of all sorts of materials.
Cashback in exchange for feedback
Cashback campaigns are also handy for getting valuable feedback or first-party data. ‘Fill in this product assessment and get €xxx cashback’: you come across it on the website of a brand every now and then. Why? Because it benefits the further development of products or services. Or because the CRM team is using it to attract extra consumers.
With the steady increase in cashback actions, it’s no surprise there are now dedicated cashback apps and websites appearing. HighCo DATA is a perfect example. Platforms like this give customers a highly transparent way of participating in cashback actions. For brands, this results in a wealth of info on customer behaviour and preferences.
Recent data indicates that approximately 40% of European consumers made use of cashback actions over the past year. It shows just how widespread and targeted this marketing tool is.
Cashbacks in retail: what’s next?
It certainly appears that in the future, brands and their marketing strategies will only attach greater importance to cashback actions. Artificial intelligence (AI) and advanced data analysis, to name just a few innovative technologies, will become important tools for companies to create even better personalised (and therefore more targeted) cashback campaigns. The increase of mobile payments and digital wallets will make cashback actions extra accessible for consumers. And that means a serious push in the back for this marketing technique.
Interested in the targeted use of cashback actions to strengthen your brand and boost your sales? Would you like to know more about launching successful cashback campaigns and effectively reaching your target group? Maybe you’d like to keep your customers happy and your company growing? Contact us today. HighCo DATA has the tools and expertise that make a difference. We look forward to sharing them with you.