Online shopping behaviours are constantly evolving, and with the rising cost of living, inflation and cuts to household spending top of mind for consumers, these behaviours will only continue to evolve further. In fact, according to Power Retail’s latest consumer survey, almost a quarter (23%) of Australians are planning to curb their online spending to save for essential items or as a result of reduced income.
With this in mind, how can businesses adapt their approach to e-Commerce, knowing that consumers are looking to save? Here at Cashrewards, we’ve observed and been a part of the rise of cashback programs in Australia, and as a new independent study recently found, Cashrewards can deliver significant benefits to retailers grappling with tough market conditions, and also reach savvy consumers at a time where consumer confidence is at an all-time low.
So, how do cashback platforms help deliver benefits to retailers?
As a shopping gateway connecting businesses to customers, cashback platforms drive customer choice by being where shoppers are, particularly when they are at the point of deciding where to purchase from.
New results from an independent Forrester Total Economic Impact™ (TEI) Study uncovered that businesses pay only on conversion, which means they assume near zero risk and benefit from a guaranteed return on their marketing investment when working with Cashrewards.
In the study, Forrester interviewed four decision-makers at leading retail brands and aggregated their experiences using Cashrewards into that of a single, composite organisation. Prior to using Cashrewards, the organisations relied on a mix of traditional and digital marketing partners, with limited success.
After partnering with Cashrewards and redirecting marketing spend, retailers saw significant incremental revenue from net new customers acquired via Cashrewards, incremental revenue from existing and lapsed customers who spent more through Cashrewards, and improved return on advertising spend (ROAS).
In fact, the study found partnering with Cashrewards delivered:
- $14.5m increase in incremental revenue among new customers.
- $11.5m increase in incremental revenue among existing customers.
- $48.5m increase in revenue when marketing spend was redirected from former marketing avenues to cashback.
- A return on ad spend (ROAS) of 14 to 1.
- A total benefit of A$74.6m over three years versus costs of A$12.1m, leading to an ROI of 514%.
As a leading cashback platform in the country and being Australian-owned and run, Cashrewards has a strong understanding of the market our merchants operate in. We work closely with our top retailers to develop integrated marketing strategies which tap into seasonality, rich data insights and consumer behaviours.
Recent internal research found that with rising cost of living, 60% of members plan to increase their spending with Cashrewards in order to save. Furthermore, and somewhat surprisingly, 72% of members still plan to travel within the next year. Insights such as this, overlayed with transactional data, allow Cashrewards to pivot with consumer trends, developing relevant messaging and spotlighting retailers to targeted segments at the most appropriate time.
With this in mind, how can retailers use Cashrewards to drive new customers, incremental revenue and a healthy ROAS?
- Incentivising members with tangible value. Stacking cashback deals with retail promotions.
- An extension to retailers marketing teams. Cashrewards drives better brand alignment and greater brand awareness.
- Tap into the organic growth of Cashrewards members. Cashrewards is experiencing significant growth in our membership base, particularly as awareness of the cashback category increases.
- Increased operational efficiency. Cashrewards leverages data to generate insights and measurable metrics
Nicole Bardsley is chief marketing officer of Cashrewards.