Various studies show that benefit programs have been steadily increasing in the country. A study by Panorama Mobile Time and Opinion Box, for example, reveals that 42% of consumers who shop on apps consider cashback the best feature.
“Digital platforms allow the creation of loyalty programs that offer truly efficient discount options, capable of giving more visibility to businesses in a competitive scenario”, says Sheila Moura, Retail Director atIZIO&Cothe 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 grow the customer base," he/she/they concludes.
To reinforce the advantages of this modality for the sector, the specialist listed 5 benefits that companies gain from implementing 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 across 24 retail chains that already include cashback as part of their sales strategy, customers who receive the benefit on their first purchase have a retention rate 4.8 times higher after 6 months compared to those who did not receive the advantage. The executive emphasizes that this is due to "the attribution of purchasing power to the shopper."
“People can use the discounts on new products and services almost immediately, or accumulate them to use on other occasions, as they see fit. Therefore, it is a format that creates a connection between retail and the public in a completely transparent and flexible way,” he explains.
She also emphasizes that the solution becomes even more important because customer loyalty "is no longer a differentiator, but a duty." "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," he adds.
- Improved sales quality
Another data point from the startup indicates that retailers using cashback achieve 85% higher spending per shopper compared to consumers who did not receive the benefit. This generates an additional revenue of R$ 883,400 for every 1,000 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 greater cost-effectiveness. Consequently, sales become more robust," he states.
- 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 make the quick decision to choose one network over another. Basically, the customer understands that this is a real benefit, which, in turn, increases confidence in that retailer and guarantees their return in the future”, he highlights.
- Cost reduction
Although it is a type of discount, cashback does not change the product's price on the shelves. With this, retailers have greater predictability regarding the costs of this strategy, as they save on label issuance and even reduce the occurrence of human errors in operations.
"Technology ensures that cashback is an additive solution, not an urgent one. In other words, the consumer can choose not to return to the retailer 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," points out Sheila.
- Adapting to the demands of both sides
Because it is a simpler and more efficient operational alternative, cashback also functions as a promotional lever that handles the various variables of a business. As the Retail Director clarifies
“Offering a personalized and relevant shopping experience so that the customer has access to cashback also creates the need for them to be part of that company’s respective loyalty program. In other words, the retailer can segment the offers according to their goals, while the customer also has the freedom and autonomy to choose when and what amounts to use. This way, everyone achieves their goals,” he concludes.
