Introduction: Hey there! In the bustling world of e-commerce, businesses are always on the hunt for the best ways to keep customers coming back. Here’s a fun fact from the Harvard Business Review: grabbing a new customer can be up to 25 times more expensive than hanging onto an existing one. Plus, those loyal customers tend to splash out 67% more than the newbies.
So, how do we squeeze more juice out of existing customers? That’s where Customer Driven Sales come into play. We’re talking big league here – over $6 billion in sales in e-commerce, and that’s without relying on flashy ads or influencers. Just pure, customer-driven sales strategies, and we like to consider ourselves the best in the world at just that. Including over $1.6B in revenue through our previous e-commerce company that our founder recently sold for multiple 9 figures.
While many brands have been playing the loyalty program card, the market today craves something more. This is where some creative brands are using cashback rewards – a powerhouse in other industries, but still a bit of a wallflower in e-commerce. These rewards are a win-win: customers love getting more bang for their buck, and businesses see a boost in loyalty, AOV, retention and more.
Let’s take a deep dive into loyalty points versus cashback rewards and see how mixing them up could be a game-changer for customer loyalty and business growth.
The Skinny on Traditional Loyalty Programs: Loyalty programs have been the bread and butter for building customer relationships. But let’s face it – the game has changed. Customers now are looking for more immediate perks. For instance, a recent survey showed a gap in what these programs offer versus what today’s consumers want, impacting both customer retention and business revenue.
And here’s a little secret: just slapping on a cookie-cutter rewards program won’t cut it. Businesses need to be smart and intentional about offering real value to their customers, not just following the crowd.
Cashback can be a great way to stand out and be ahead of the curve on offering rewards that customers actually want.
Cashback Rewards: The Game Changer: Cashback rewards are straightforward and instantly gratifying – qualities that today’s customers love. Data shows that nearly half of cashback users see it as a key factor in their shopping decisions. The best part? Most people already know and love cashback thanks to credit cards. It’s a familiar concept, so customers don’t need to be coaxed into using it.
The real magic happens with cashback because when you give more value than what your customers pay for – that’s what creates goodwill. This goodwill is a cornerstone of customer driven sales which has helped us generate in over $6 billion through various rewards and referral programs.
Goodwill can turn into customer loyalty, more purchases, and the holy grail – customer referrals. That’s exactly why we developed Kwik, to help brands amp up the goodwill and go viral with Customer Driven Sales.
Loyalty Points vs. Cashback: Head-to-Head:
- Engagement Duration: Loyalty points are designed for long-term engagement, crucial for sustaining customer relationships. In contrast, cashback provides a quick reward, often boosting immediate sales – a significant aspect for businesses looking at short-term revenue goals.
This can also lead to a high adoption to your brands rewards program. Being that it’s an instant cash reward it’s something they can claim instantly and get into your brands reward Eco-system instantly. This is the start of customer driven sales.
Loyalty points are not instantly valued like cashback. With points it takes time to learn the program – to learn the value of the point where as with cash they know what they get instantly. Leading to more customer satisfaction and more goodwill.
- Perceived Value: Accumulating loyalty points might take time, which can lead to delayed gratification. On the other hand, cashback offers a more immediate and discernible value, often appreciated by customers who seek quick rewards. A study showed that 61% of customers say they prefer to go with the brands providing cashback rewards than other types of loyalty programs (Bingage).
In they eyes of your customers cash is king.
They never understand the value of your loyalty points right out of the gate because all loyalty points are valued differently, and they’re never sure how much value they actually have.
Overtime, however, they will become familiar with your program and your points and begin to love it. Hence why cashback being familiar and instant reduced the learning curve and will lead to more adoption and more customer satisfaction.
- Customer Appeal: Loyalty points can build a sense of brand loyalty and community, whereas cashback attracts customers who prefer simplicity and direct rewards. Understanding these diverse customer preferences is key for businesses to tailor their marketing strategies effectively.
Best of Both Worlds: Why choose one when you can have both? Combining loyalty points with cashback meets a wide array of customer preferences. This strategy keeps customers engaged in the short and long term, paving the way for a robust and beloved rewards program.
This can only lead to good things, more purchases, more frequent purchases, higher AOV, and reducing CAC to $0 because you’re not paying Facebook to generate the customer – you’re paying your customer to generate the customer. Meaning that your customer is excited because they get rewards, and you don’t have to pay for this customer acquisition until after it happened!
It’s an unlimited ROI.
How we can help you
Cashback is something quite niche and finding a software to do it well is harder than you think. You have heard us talk about our customer driven sales model that we have created with 30 years of experience and billions of generated sales.
Cashback has been a key piece along side loyalty in those programs, and we realized that there is not a good tool for business owners to have both integrated. There are software solutions that let you do both, but they’re not integrated. They’re separate user experiences that deliver the rewards to the customers in multiple places. It creates a chaotic experience that has a lot of friction to use. So, even if your rewards are great, no one will use it because it seems like just a side hustle or a chore…it has to be easy.
That is why we developed our own software that integrates these 2 reward modules, with 3 additional ones that help you give more value to your customers, generate more goodwill with your customers, and create an unstoppable growth engine of Customer Driven Sales.
Not to mention, it’s a fraction of the price if you were to buy those software separately. We believe in our CDS model that the bulk of our revenue is tied into the performance of the program. We stand behind what we talk about. So much so that we offer a 100% money back guarantee on all services if you’re not happy with them.
We can help you create a customer driven sales program for your business.
We offer a couple different solutions: if you want us to come into your business and completely manage your rewards program from strategy, to creation, to development to marketing, to long term strategy etc., we can do that. Or, if you want our software, we can give you that for a great price and if you want us to consult and give you what we would do for your business we also offer rewards program consulting with someone who has a minimum of 20 years of experience.
We’re here to help all brands generate customer driven sales, and if you would like to talk to a specialist just click here!
Or visit Kwikrewards.net to see all the solutions we offer.