The first half of 2020 has certainly been challenging. With stay-at-home rules in place across the country, businesses both large and small have experienced unprecedented financial setbacks. Now, as we emerge from our homes, it’s time for merchants to kick start sales and bring in new customers—or bring back existing ones.
As people tighten their budgets and re-evaluate their spending, the age old saying “cash is king” has become increasingly relevant – for both businesses and consumers. As such, cash rewards, particularly those with flexibility, will be highly valued and these kinds of rewards may be the key to drive spending and loyalty with your brand.
We have the ideal proven promotional strategy for you to use: cashbacks. Here are the top five reasons to use cashbacks—and our cashback processing and fulfillment services—as you fire up sales:
- Cashbacks allow you to compete on price while maximising immediate cash flow and maintaining premium brand perception. Instant discounts do move merchandise, but you erode profit margins today and teach customers to buy only “on sale.”
- Cashbacks are powerful tools to drive purchase urgency. Attract new customers and encourage repeat purchases using eftpos, Visa or Mastercard Prepaid Cards that are branded with your logo.
- During the cashback submission and reward delivery process, you can collect clean customer data, enroll shoppers in your loyalty program, request product reviews and more.
- Research conducted by the Aberdeen Group in 2018 revealed that reward-based promotions generate 6% greater average profit margin per customer than discounts do.
- Consumer research conducted by Murphy Research in 2019 found that getting a reward from a brand or retailer would encourage 63% of respondents to spend more with that business—and 65% noted they would purchase more often from the business giving them the rewards.
- Many rewards can be delivered digitally and even directly to customers via SMS with products like Mobile Pay—making them perfect for consumers who will be slow to emerge from social distancing.
To find out more about Blackhawk Network’s cashback solutions contact us today.