Cas back promotions are a powerful marketing tool to introduce people to your product. In a cashback promotion, consumers can buy a product in the store and then get a (partial) refund of the purchase price by uploading the receipt. There are several advantages to such a cashback campaign.
It has a lowering effect on the threshold
A cashback promotion works as a barrier. When a consumer does know your product, it is not a given that he or she will buy your product. This could be because he is loyal to another brand, is not familiar with the type of product, or thinks it is too high a price. These are consumer barriers that you have to try to remove and you can use a cashback promotion well for that. Because the consumer gets the purchase price back, they are more likely to purchase.
It increases the rotation
A cashback promotion works perfectly for increasing rotation. Over the course of the campaign, rotation among both existing and new customers will increase dramatically. This is because the thresholds have been lowered. In addition, you can also use a cashback promotion to strengthen the bond with the retailer.
It creates more repeat purchases
Ultimately, of course, you want consumers to buy your product more often. Because consumers go through the entire purchase process during a cashback promotion, they are more likely to make a repeat purchase. The consumer now knows where the product is and how much the product costs. Also, the consumer has already tried the product once, so the barriers that were there before are now lowered, or even gone.
You collect data with a cashback promotion
Another advantage to a cashback promotion is that it allows you to collect relevant data. When uploading the receipt, the consumer must leave certain information. It starts with the email address, this is the time to ask if they are interested in other marketing expressions.
At Lime Factory, we offer cashback promotions through our own platform ‘Kassabonkorting.nl’. During a cashback campaign we collect various data. This should include age, purchase date, purchase store and distribution by product. In addition to this data, it is possible to link our Consumer Insight Application to it. This will give you insights into product ratings and repeat purchases, among other things. In addition, we have built a database that allows for very targeted targeting of a particular audience. By harnessing this data, we can achieve even better results.
We can also use technologies to analyze from the receipt which product is most commonly purchased in addition to the promotional product. The coupon can also provide insight into the question ‘do people go to the store specifically for a cash back promotion’? Or do they combine this during their weekly shopping? Thus, you can gain insight into consumer shopping behavior.
Combines well with other activations
Did you know that cashback promotions combine well with other activations? In fact, you can link your action to an online activation such as an influencer campaign. In addition, it is possible to combine a cashback promotion with other in-store activations such as sampling or placement of displays. Such an all-round activation campaign ensures a higher result because the different elements reinforce each other.
An example: you want to create more awareness and increase rotation? If so, deploy a sampling campaign first. Place displays the stores to raise awareness and end your campaign with a cashback promotion. Because awareness has increased in the previous weeks, the rotation during the cashback campaign will also increase. To see how this works in practice, check out our all-round activation campaign for MAOAM.
Choose your platform Lime Factory offers many different options for a cashback promotion. For example, you can place your promotional campaign on a platform such as ‘Kassabonkorting’, but you can also choose to set up a campaign from your brand name. We then do this by integrating the cashback promotion into your own online environment. Would you like to know more about this? Then contact us.