What do four big retail brands – in Australia and around the world – have in common? Aside from loyal customers and brilliant products, they all trust Cashrewards to help them drive revenue.
A recently commissioned study conducted by global research firm Forrester Consulting has found the Total Economic Impact™ of Cashrewards, which is Australia’s leading cashback programme, with more than 1.5 million members and more than 2000 partners, including Apple, Myer, Liquorland and Target.
The Forrester study involved extensive interviews with four leading brands that work with Cashrewards. These brands, which were given anonymity in exchange for providing detailed financial data, included:
- A multibillion-dollar global cosmetics brand, headquartered in Europe.
- A multimillion-dollar Australian travel brand.
- A multibillion-dollar technology company based in the US.
- A billion-dollar Australian retail brand.
Why brands love Cashrewards
All four brands provided testimonials in support of Cashrewards.
“Performance and ROI are key to our success and are the key reasons behind our strong and lasting relationship with Cashrewards,” said the digital marketing manager and marketing technology manager at an Australian retail chain with annual revenue of $3.5b.
“Cashrewards is the top player in the market,…” said the digital marketing and marketing technology manager of an American multinational technology company. “We see sizeable performance from them.”
The performance and affiliates marketing manager at an Australian tourism/leisure brand with an annual revenue of $100m said: “We see that by offering rewards [through Cashrewards], customers have higher average order value and basket sizes. Purchase frequency is higher too.”
Cashrewards drives revenue
To quantify the benefits of Cashrewards, Forrester aggregated the experiences of all four brands into that of a single, composite organisation. The results revealed that, in aggregate over a three-year risk-adjusted period, partnering with Cashrewards delivered these organisations:
- A return on ad spend (ROAS) 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%.
- $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.
How does Cashrewards work?
Cashrewards works with brands to create a cash back offer, and then promotes that offer to its network of more than 1.4 million members. This in turn, drives customer acquisition and revenue.
One of the key challenges noted by interviewees in the Forrester study prior to using Cashrewards is the “effective use of marketing expenditure” Cashrewards pay-on-performance model means that brands only pay when a conversion occurs. This means there is zero wasted advertising spend – making it the perfect solution for marketers during a challenging economic environment.
What are the benefits?
When interviewees were asked what they were looking for from a rewards program, they were unequivocal: marketing partners needed to deliver true incremental sales, offer a robust measurement of performance and a high ROAS, increase average order value (AOV), increase customer purchase frequency through high personalisation and targeting and acquire new customers and drive repeat purchase.
We believe the Forrester study confirmed that Cashrewards is effective in all these areas.
In addition, working with Cashrewards offers additional unquantified benefits. These include improved market acuity, with Cashrewards able to use its “strong understanding” of the market to recommend campaign mechanisms, and better brand alignment, with Cashrewards able to create bespoke campaigns for partners.
Working with Cashrewards
In addition, the brands interviewed by Forrester confirmed that working with Cashrewards is easy and efficient.
“Support from Cashrewards is excellent and professional,” said the Australian retail chain's digital marketing and marketing technology manager. “We have weekly WIPs with them, and they are very proactive in providing new ideas to capture customers.”
And, based on their successes, these brands are looking to the future with Cashrewards. “Long term strategy is to run highly valuable and exclusive cashback with Cashrewards,” said the digital brand manager of a New York cosmetics and skin care retailer.