How a cashback campaign can supercharge your marketing efforts.

Knowing that savings and value are often more important than brand loyalty to today's shoppers creates a challenge for marketers, which is why cashback campaigns can be a win/win solution for brands and their customers.

Consumer research conducted by savi at the end of last year revealed that the cost of living is driving up shoppers' expenditure, resulting in cutbacks across all areas of their weekly spending and not just on food. Meanwhile, we also discovered that 1 in 3 shoppers are influenced by cashback promotions since they offer a clear incentive for those wishing to spend less and be rewarded for what they buy.

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 mechanic for brands seeking to build lasting customer relationships and boost 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 allow consumers to decide how to maximise their savings. Whether reinvesting in more spending, saving for the future, or simply putting money back into their wallets, shoppers appreciate the freedom that cashback promotions offer. This not only enhances the 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 analysing redemption patterns and spending habits from cashback, brands can gather actionable data to help strengthen their marketing and product strategies. They can also legitimately collect valued personal data with which to retarget their customers.

savi has produced countless cashback promotions for some of the world’s favourite brands. In our experience, they can work well across not only FMCG, but various other sectors including technology, beauty and 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 case study for an example of successful cashback for a non-FMCG brand across online and offline retailers.

Contact savi to discover how our cashback solutions can help your product stand out from the rest.