Rising costs. ‘Stagflation’. Surging interest rates. Iceberg lettuce making headlines. From the petrol pump to the price of groceries, virtually all economic indicators look bleak.
How retailers fare in these challenging times will vary according to business size and industry. But most brands will find themselves grappling with the dual difficulties of reduced consumer spending and as a flow-on effect, the increased pressure on marketing budgets.
That’s where Cashrewards comes in.
This month, Cashrewards released the findings of a commissioned Forrester Consulting Total Economic Impact™ (TEI) study which found that using Cashrewards in the marketing chain can deliver significant returns while offering ‘near-zero’ risk to retailers.
That’s because Cashrewards offers a pay-on-performance model, where brands only pay when a conversion occurs – meaning there is zero wasted advertising spend. This in turn makes it the perfect solution for marketers during a challenging economic environment.
The Forrester study also found that Cashrewards offered a 14:1 return on ad spend (ROAS).
Sally Marsden, head of B2B marketing at Cashrewards, said: “We’ve always known that our ROI and ROAS metrics are impressive for our brand partners, so it’s reassuring to see an independent study built on a composite model confirm this.
“Marketing investment is always going to be finite, so brands need certainty that the money they invest will deliver a return.”
How can Cashrewards work for your business?
Cashrewards is Australia’s largest cash back program, with more than 1.4 million members and more than 2000 partners, including Apple, Myer, Liquorland and Target.
Cashrewards works with brands to create a cash back offer, then promotes that offer to a network of more than 1.4 million customers. This drives customer acquisition and revenue for the brand.
And the revenue generated can be significant.
Earlier this year, Cashrewards commissioned global research firm Forrester Consulting to take an in-depth look into the benefits businesses receive by partnering with Cashrewards. Forrester interviewed four key decision-makers across leading Australian and global retail brands and aggregated their experiences with Cashrewards into that of a single, composite organisation.
The results revealed that (in aggregate) partnering with Cashrewards delivered these organisations:
- A return on ad (ROAS) spend 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 per cent.
- $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 Cashrewards.
“Performance and ROI are key to our success,” commented one of the retail brands interviewed by Forrester. “That’s why I chose Cashrewards. They are the biggest, and they are Australian.”
Among the brands interviewed by Forrester was a multinational technology company founded in the US. Their digital marketing and technology manager said: “Cashrewards is the top player in the market and we see sizeable performance from them. It made sense to partner and engage with them.”
These results are supported by observations from other brands not interviewed for the study. For example, Lancome recently partnered with Cashrewards who ran promotional activities and saw a 50 per cent increase in revenue via the Cashrewards channel in Q4 of 2021 as a result, as well as a 50 per cent lift in average order value.
Kahla Spooner, Lancôme’s digital brand manager, said: Cashrewards has been a pivotal partner.
“Through their premium placements, Lancôme has been able to deliver exceptional revenue outcomes.”
High return, low effort
Nicole Bardsley, Cashrewards CMO, believes that Cashrewards’ success comes down to Australians’ enthusiasm for value.
“Australians have a real affinity with earning and saving,” said Bardsley. “We are living in the era of a savvy, value-conscious shopper who knows how to thoroughly research their options before making a purchase.
“With Australian confidence levels dropping and the increasing worries about the cost of living, Aussie shoppers will become even more offer and savings focussed.”
As well as enabling retailers to reach these customers, Cashrewards also offers retailers a simple, client-centric service.
“We’re really well suited to brands that want a high return and low effort – we make things really easy,” continued Bardsley.
Cashrewards has its own in-house creative agency which creates highly targeted, multi-channel bespoke campaigns to meet clients’ objectives, whether that’s increased average order value, customer acquisition or incremental revenue.
That means that while Cashrewards might create an influencer marketing campaign, supported by access to Cashrewards’ extensive database for one brand, it might create a bespoke omnichannel campaign, running in-store and online, for another.
Interviewed decision-makers in the Forrester study observed that running campaigns with Cashrewards was “fast and easy” for brands, saying “interviewees noted that Cashrewards was accommodating with new campaign strategies.”
The study also highlighted another benefit of working with Cashrewards: better brand alignment. This is because brands have the opportunity to work directly with Cashrewards (or through third parties like agencies) on the messaging and tone of voice of campaigns, as well as the channels they operate in.
The Forrester study also observed that brands that work with Cashrewards benefit from up-to-the-minute market insights. “Being Australian owned and run, and as one of the largest cashback programs in Australia, Cashrewards has a strong understanding of the market their merchants operate in. Merchants benefit from effective campaign mechanisms recommended by Cashrewards,” the study pointed out.
But the core benefit identified by the study was more efficient marketing expenditure.
“Prior to using Cashrewards, interviewees relied on a mix of traditional and digital marketing. This included display ads based on cost per thousand pricing models, which historically had low return on advertising spend,” noted the study.
By comparison, Cashrewards delivered a 14:1 ROAS and a three-year 514 per cent return on investment (ROI).
Marsden said that, following the release of the Forrester study, there has never been a better time to partner with Cashrewards: “The current economic times and uncertainty presents businesses with an opportunity to play into new shopping habits, in particular for customers who will be forced to make smarter purchasing decisions.
“And as Cashrewards operates on a pure performance basis, there’s zero wasted reach.”