Various studies show that benefit programs have been steadily growing in the country. A study by Panorama Mobile Time and Opinion Box, for example, reveals that 42% of consumers who shop in apps consider cashback the best feature.
Digital platforms allow the creation of loyalty programs that offer truly effective discount options, capable of giving more visibility to businesses in a competitive environment, says Sheila Moura, Retail Director ofIZIO&Co, the most complete solution for connecting all ends of the retail chain with the shopper. "This is the main way for retailers to engage diverse audiences", "expand sales and increase the customer base", complete
To reinforce the advantages of this modality to the sector, the specialist listed 5 advantages gained by companies with the implementation of cashback in their operations. Check it out
- Customer retention
According to a survey conducted by IZIO&Co itself, analyzing the purchasing behavior of over 5 million consumers from 24 retail networks that already have cashback as part of their sales strategy, customers who receive the benefit on their first purchase have a retention of 4,8 times larger after 6 months, in relation to those who did not obtain the advantage. The executive emphasizes that this is due to the "assignment of purchasing power to the shopper".
A person can use the discounts on new products and services almost immediately, or accumulate it to use it on other occasions, as you find convenient. Therefore, it is a format that creates an approximation between retail and the public in a completely transparent and flexible way, explain
She still emphasizes that the solution gains even more importance because customer loyalty "is no longer a differentiator ,but rather an obligation. "Delighting consumers is a lever to ensure Return on Investment (ROI) in promotional campaigns, and this is what companies should constantly seek to increase their profitability", complement
- Improved sales quality
Another piece of data raised by the startup indicates that retailers using cashback can achieve a spending per shopper 85% higher, in comparison with consumers who did not receive the benefit. This generates an additional revenue of R$ 883,4 thousand for every 1 thousand engaged customers
For Sheila, these results are linked to an 18% increase in the average ticket. Unlike immediate discounts, the format expands both the range of options for the customer and the possibility of acquiring them with a better cost-benefit ratio. Consequently, sales become more robust, affirms.
- Increased shopper frequency in the store
The study by IZIO&Co also reveals that shoppers who receive cashback have a 57% higher frequency in the surveyed retailers. The Retail Director emphasizes that this quick engagement is due to the elimination of any bureaucracy in the purchasing journey
"The consumer has the discount materialized in their digital wallet and this is the factor that makes them quickly decide to choose one network over another". Basically, the client understands that this is a real benefit, what, in turn, increases confidence in that retailer and ensures your return in the future, highlights
- Cost reduction
Although it is a type of discount, the cashback does not change the price of the product on the shelves. With that, retailers have greater predictability regarding the costs of this strategy, since they save on label printing and even reduce the occurrence of human errors in operations.
"Technology ensures that cashback is an aggregating solution", not urgent. That is to say, the consumer may choose not to return to retail if they do not see advantages in making the purchase at that moment, but still the benefit becomes a 'result' for the establishment and does not hinder the progress of the business, score Sheila.
- Adapting to the demands of both sides
For being a simpler and more efficient operational alternative, cashback also works as a promotional lever that deals with the various variables of a business. As the Retail Director clarifies
"The offer of a personalized and relevant shopping experience so that the customer has access to cashback", it also creates the need for him to be part of the respective loyalty program of that company. In other words, the retailer can segment the offers according to their goals, while the client also has the freedom and autonomy to choose when and which amounts to use. Thus, everyone achieves their goals, concludes
