In these turbulent economic times, many small businesses are on the lookout for marketing methods that guarantee results and increased profitability. In this article, we're going to take a closer look at a specific strategy that helps businesses do just that: cashback promotion campaigns.
According to the 2015 Cashback Industry Report, there are currently 235 companies dedicated to cashback around the globe. The cashback industry is worth $84 billion in just the US alone!
So, what exactly is cashback?
In a nutshell, cashback makes it possible for customers to earn while spending.
For online stores, the process is a bit easier.
As the customer goes to purchase at a participating online store, cashback websites notify them of the cashback percentage.
The high street independent businesses are more limited in the implementation of Cashback campaigns. That is one of the reasons OMG Partner Network was created, but more on that later.
Where does this cash come from, you ask? The cashback sites earn a small commission on every purchase made where a user opts-in, and they give part of this commission to the user.
Another way for customers to get cashback is through a cashback credit card. A customer receives points for spending on a particular card. This is a booming industry and a great way for credit card companies to keep their customers loyal.
But again, this doesn't give much control to the business owners themselves.
Many stores now prefer to offer cashback over running simple discounting campaigns. As we have written about impact of discounts in our earlier article - a poorly implemented discount campaigns can lead to loss of profits. Worse yet, it can devalue your business in the eyes of your customers.
Cashback provides a safer and more robust alternative that is good for your business. And your customers will love it.
So here are some ways you can get started.
Offer tangible value for your customers with your cashback scheme
A well-known fact in the retail space is that your most loyal customers are also your most profitable.
When creating a cashback campaign, it's important to ensure that what you give your customers offers them enough value to keep them returning. Design your cashback and reward policies to build loyalty and you're likely to see a much higher return over time.
A well-thought-out rewards program can be a great tactic to accelerate your loyalty life cycle. Understanding your target customers well is key to this. Aim to develop a loyalty scheme where customers are kept informed about rewards and given enough of an incentive to earn them.
To be clear, you will need a carefully developed broader loyalty strategy with cashback promotions. Simply offering "cashback at the till" is acting as an ATM and doesn't build raving fans for your business.
This is also where most currently available cashback solutions for physical stores fall short. With OMG, however, we gave you a comprehensive set of free tools to offer tangible rewards to your customers through cashback, which is exciting for your buyers and profitable for you.
Promote your cashback campaign
Setting up your cashback promotion effectively is just one small part of ensuring its success - you now need to let customers know about it!
Reach out to your existing customer base using all your usual marketing channels.Raise awareness with new customers by running paid promotions on social media, targeting potential new customers by interests and demographics.
A well-designed cashback campaign combined with a loyalty program can be a great tool to attract many new valuable customers.
One of the ways that OMG takes a different route to traditional solutions, is that OMG has built a network of active buyers in London. We make it easy for our partners to promote their cashback offers for free. This promotion would have an equivalent value of £10,000 in paid social media promotion, so it's a no-brainer.
Make your cashback promotion easy to access
In this digital age, customers are used to, quite literally, having access to everything they need at their fingertips.
Make it just as easy for them to access your cashback promotion by setting up a fully digitised campaign.
Giving your customers instant access to your campaigns greatly increases the likelihood of them using it. Invest some time into the user experience and trial it amongst your staff to assess it.
But keep in mind that now there are many loyalty sites, individual apps, and other things that create noise for your customers. Standing out might present a challenge. And most active buyers report that they find it challenging to track and take advantage of all available options.
This is where you have to combine your ability to have control over your cashback campaigns while seamlessly being part of your customers' daily shopping experience.
OMG Network presents a great opportunity to create digital cashback campaigns, as per your specific requirements, making it easily accessible for active buyers around your store. And at the same time, because OMG works on creating a platform that unifies loyalty campaigns for customers, users get more value instead of more clutter. And the more value they get, the more likely they are to be your active shoppers and brand supporters.
Need a little extra help with setting up your cashback promotions?
At OMG, we've developed a platform that enables business owners to create, manage, and promote their cashback campaigns with ease. We wanted to make this functionality easily accessible for businesses of all sizes, from startups to bigger brands.
The next step?
Visit our partners' page, sign up, and a member of our team will get in touch to get you started.