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Case #2: Cashback & coupons service
We do believe it is better to show actual market cases and numbers rather than to just write some notes superficially. We are also willing to encourage & help businesses to solve their issues by showing it all in the most detailed way possible. This is our second case presented so far, and it's about cashback service.

What

Local (name & country withheld due to the NDA) rewards service which offers cashback & coupons for online purchases.
Issue:
Service users did NOT make repeat purchases. Obviously, both metrics: the Retention Rate and the number of purchases per user were really low. And this, in turn, led to a low core metric - GMV (Gross Merchandise Volume).
In order to fix it all, this is what had to be done:

  • To boost the loyalty of already registered users so that they make repeat purchases
  • To create new sales channels
  • To increase the 'charm' of the service so that users, firstly, make purchases more often and secondly, tell their acquaintances and friends about it (WOM).
Note: it was essential to continue (in parallel) all marketing activities thus attracting new users.
Solution# 1:
In order to retain users, we've proposed to implement browser extensions. The plugin returns to using the service of those users who start their user journey from Google, social media channels, newsletters, advertisements, competitors' websites, or directly from the store's site.
Result #1:
The implementation of web extensions for Chrome, Safari & Firefox increased the Retention Rate by 27% in a year.

Solution #2:
We've proposed to do an in-store cashback.
First, people make offline purchases more often than online ones (this particular country case). However, e-commerce is growing and the number of online purchases will rise within it.
Secondly, such categories as home appliances and clothes are not purchased on a monthly basis. While food & groceries, for instance, are daily needs, regardless of gender, age, or income level. So, If you attract grocery stores for a partnership, the purchases will happen more often.

And finally, not all stores operate online and the number of offline stores is much bigger. If we have more partner stores, the service will become much more attractive to the users.
In-store cashback implementation
Dashboard for partner stores within analytics and easy-to-use tools for the loyalty system + mobile application for the end-user.
The store gets:
Loyalty program

Easy to create and target advertising messages
Client base
SMS, push notifications, email - several delivery channels, and the choice of the most converting one for a specific client.
Power of real-time communication
The opportunity to notify about the offer as soon as it was launched + to those users who are nearby.
The end-user gets
1
Discounts & cashback
2

Ease of use
3
Awareness: instantly learns about store's promotions and offers
Result #2:
25% of users shop every month within a year after the first purchase.
General outcome: GMV increased by 130% over the year.

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