27/08/2019 | cashback, discounting, marketing, promotional marketing, fulfilment, handling house

Cash in on Cashbacks!

Cashback is a essentially a retrospective discount, but it is more strategic than traditional point of sale discounting and will work to increase your long term profitability without lowering your profit margins significantly or hurting your brand or market share.  Traditional point of sale discounting can erode the public perception of your brand, making the product seem cheap – whereas a product offering Cashback is a better perceived option, as you are rewarding your customers for their purchases.

Increasingly, businesses are adapting their methods of marketing, leading away from price point discounting in order to be able to promote their product or services digitally and across a variety of channels such as video, social media and mobile.

Cashback is the perfect method by which to do this, upping your brands visibility, driving sales and encouraging both repeat and trail purchases.

Just a few reasons to jump on the Cashback marketing bandwagon:

  •          Competitive Rivalry – where rivalry is fierce, companies may be tempted to attract customers with aggressive price cuts, and whilst this is still a viable option, it has been proven that price slashing is not the most effective way of creating brand awareness, and therefore driving sales and strengthening your brand.
  •          Threat of Substitution – if a customers’ switching costs are low, there is little stopping them from choosing a competitor’s instead of your product, especially if the product’s performance is comparatively equal to that of your own.
  •          Value – Unlike traditional discounting, Cashback customers have to ‘apply’ for their rebate, the completion of this can be surprisingly low due to apathy on the customers’ part in general.  This means that the offer has a higher ‘perceived’ value at the point of sale, but in reality, the cost to your business is much lower.
  •          It’s a great way to support point of sale marketing efforts, and advertise socially/digitally amongst your target clients.
  •          Moreover, it’s an effective way of driving sales, creating a loyal customer base, and gaining valuable data insights from your customers.

MRM make it easy with our in-house designed Cashback platform, offering:

  • A 100% Digital Cashback there’s no postage costs or cheque clearance fees for you to pay
  • On-line validation ~ the consumer simply uploads a photo of their proof of purchase from their mobile phone  
  • In-house digital expertise to set up the brand microsite for the consumer to enter their details
  • Payment by BACS (we’re a registered bureau) enables speedy payment to the consumer’s bank account (with all the correct security measures)
  • We can make multi-currency payments for international campaigns
  • Consumers receive email alerts at each stage to show their claim’s status (including when their payment will hit their account)
  • Efficient on-line validation means handling cost savings for you and audits are quick and easy whether you’ve fixed your fees or not.
  • You can view a dashboard of campaign results 24/7

You can find more information on Cashback promotions here or give Caroline a call on (01858) 414767, or drop me an email at caroline.jenkins@mrm.co.uk

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