Cashback promotions are a perfect approach to attract consumers to buy your product. Cash is always an engaging offer and the simplicity of cashback promotions makes them highly rewarding.
Consumers can easily log onto a promotional website, upload their receipt, fill in their personal details and they receive a cashback directly in their account.
It’s very straight forward and offers great value to consumers.
Cashback promotions on FMCG products often take the form of a Try Me Free or Money Back Guarantee. Essentially they are the same, as consumers get the value of the product back, however, the messaging around these two mechanics can vary substantially depending on what the consumer is being asked to do.
What’s the difference?
A Try Me Free offers cashback to every consumer who is willing to participate. It’s an extremely positive message and the use of the word ‘free’ instantly captures that consumers engagement
The Money Back Guarantee mechanic, on the other hand, requires consumers to write up a statement as to why they aren’t satisfied with the product. Often this causes the consumer to be more reluctant to claim and therefore the redemptions will be lower than with the Try Me Free mechanic.
Electrical Cashback Promotions
Campaigns offering cashback are frequently used on electronic products and white goods where consumers compare the products and often focus on the cost. A cashback promotion is a tactical way to sell more products without offering a direct discount and devaluing the brand
Samsung are currently running a cashback promotion on their home appliances. They list all their products and the relevant cashback value. You can have a look how it’s set up here: https://www.samsung.com/ukappliancecashback/
Cashback promotion vs discount
Cashback promotions might seem expensive at first, but if you compare them to a direct discount, they are a great value (both to the brand and consumers).
Here is an example of a Cashback vs Discount scenario:
Let’s assume we have a product with retail price of £500, we have a sales volume of 1000 and are considering a £50 discount/cashback.
These are illustrative figures based on the assumption that the average redemption will be 25%. However, it highlights a strong case that cashback promotions are much better value than discounting offers due to the consumer having to take further action when they get home, the discount is not automatically applied.
There are many factors affecting the attractiveness of a cashback promotion, but the engaging with Mando will take the worry away as we can provide a fixed fee solution on your campaigns, ensuring that your promotion will never go over budget. Our clients benefit from knowing the exact cost of their campaign before the promotion starts.
If you would like some advice on running a cashback promotion please get in touch for friendly chat with one of our experienced team at email@example.com