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Mobile Rewards are a Win-Win For Consumers and Merchants Alike

By: Tony Padam | Sep 4, 2015

ROI of 538%

It is no secret that the world is moving on a fast track towards the digital world. As the generation of newspapers, books, and radios nears an end, a new generation of smartphones and the internet is rapidly taking over. Today, consumers have access to a vast amount of digital content in a matter of seconds right at their fingertips. While the use of digital marketing can ensure more exposure to consumers, it also allows merchants to measure the success of campaigns and customer buying habits which is all valuable information for any business to run efficiently.

In the case study, a business using CaptureCode’s services for digital marketing saw a high return on investment. After investing $2,000, the business found that customers spent $10,767 on the first visit and $2,096 on the second visit. By targeting their customers, they were able to see better returns. The customer would redeem the free offer sent out by the business and spend more by buying additional products during the visit. The merchant was then able to add points to the customer ID thus giving a free product for the following week.

While customers reaped the benefits of free promotional offers, the business was able to promote new products, increase transactions and revenue, and enhance customer engagement. When the business sent out the promotion with an outreach of 51,987 customers, they saw an open rate of 31.66% and a redemption rate of 6%. During their sustained campaign, they sent the promotion to 919 customers and saw a 73.53% open rate and a 94.5% redemption rate. Using this information, research found that the key drivers of ROI is creating a cross-selling opportunity and offering free promotions which in return led buyers to make additional purchases.

Overall, incentives inspire repeat visits and fosters a sense of loyalty. Three out of four customers are likely to recommend a loyalty program to others thus expanding the outreach of customers for businesses. Additionally, seven out of ten customers who use incentive programs like the idea of loyalty programs.
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