Redefining Cashback: Rewarding Creativity, Not Just Purchases

In the dynamic world of e-commerce, the traditional model of cashback rewards has been to incentivize purchases. But as the co-founder at Gratitude, I've been part of a transformative journey that asks: Can we make cashback rewards more meaningful? Can we use them to celebrate and reward creativity, rather than just transactions?

Cashback Rewards: A Paradigm Shift

The answer, we've discovered, is a resounding yes. We've reimagined our CashBack & Rewards program to do just that. Instead of merely rewarding customers for making purchases, we're rewarding them for generating user-generated content (UGC) reels.

UGC reels, which showcase our products in action through the lens of our customers, have become a powerful tool in our marketing arsenal. They provide authentic, relatable, and diverse perspectives of our products, building trust and fostering a sense of community among our customers.

The Value of Creativity

By rewarding customers for their creativity, we're not just generating valuable marketing content, we're also fostering a deeper connection with our customers.

We're recognizing and valuing their creative efforts, their unique perspectives, and their willingness to share their experiences with our products.

This approach aligns with the shift towards active consumer participation in brand narratives. It's not just about buying and using products, but about being part of the story of those products. And what better way to be part of that story than through creative expression?

A Cost-Effective Solution

In Europe, merchants are paying an average of ￡69 to get original UGC videos for their brand, according to data from Useclip. With Gratitude's innovative approach, there's no need for businesses to pay third parties to create reels. Our customers become the creators, generating authentic and engaging content that resonates with other customers.

A Behavioral Perspective

From a psychological perspective, this approach taps into the intrinsic motivation that drives creativity. It also leverages the endowment effect, a cognitive bias that causes people to overvalue what they own. When customers receive cashback for their UGC, they perceive it as a reward for their creative efforts, which can lead to increased brand loyalty and engagement.

Conclusion

In conclusion, rewarding customers with cashback for generating UGC reels is a powerful and cost-effective way to make cashback rewards more meaningful. It's not just about incentivizing purchases, but about celebrating creativity and fostering a deeper connection with our customers.

At Gratitude, we're excited to be pioneering this new approach to cashback rewards. We believe that by rewarding creativity, we can create a more engaging and rewarding shopping experience for our customers, while also generating valuable UGC for brands. As we continue to innovate in this space, we look forward to seeing the amazing content our customers will create, and to celebrating and rewarding their creativity!

Our Gratitude Cashback is available from July 10 on the Shopify App Store:

Rinat Keinan

Gratitude CashBack, Co-Founder & CPO