Cashrewards “near-zero-risk” model offers significant benefits to retailers under strain.
A new independent study finds that Cashrewards’ pay-on-performance model significantly benefits retailers grappling with tough market conditions.
As retailers face looming uncertainty over inflation, a new study has found that Cashrewards, Australia’s largest cashback program, can deliver significant returns while offering “near-zero” risk to retailers.
Cashrewards today announces the results of an independent Forrester Total Economic Impact™ (TEI) Study, which found that its pay-on-performance model offers significant benefits – from increased revenue to customer acquisition – with little risk.
Cashrewards – which has over 1.4 million members and partners with more than 2,000 merchants, including Apple, Myer, Liquorland and Target – commissioned Forrester Consulting to examine the potential return on investment generated by deploying Cashrewards
Forrester interviewed four decision-makers at leading retail brands and aggregated their experiences with Cashrewards into that of a single, composite organisation.
The results revealed that, in aggregate, partnering with Cashrewards benefits 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.
● $11m increase in incremental revenue among existing customers.
● $48m increase in revenue when marketing spend was redirected from former marketing avenues to Cashrewards.
Chief Marketing Officer at Cashrewards, Nicole Bardsley, said: “We turn inefficient marketing spend into real value for our merchant partners, and the results from this independent study confirm this for us. Cashrewards drives real conversions and new customer acquisition results and show the value we offer partners.”
Not only did the Forrester TEI study uncover the financial benefits of deploying Cashrewards, but it also uncovered several unquantified advantages for enterprise clients. These included improved market acuity, thanks to campaign recommendations from Cashrewards, better brand alignment due to Cashrewards’ ability to work with companies on the tone of voice and messaging, and increased operational efficiency.
Digital Marketing and Marketing Technology Manager of an American multinational technology company that was interviewed by Forrester for the study said, “Cashrewards is the top player in the market. We see sizeable performance from them. It made sense to partner and engage with them.”
The Forrester study observed that today’s complex omnichannel retail environment can present challenges for marketers. However, Cashrewards offers businesses near-zero risk, as they only pay on conversion.