Common Pitfalls and How to Avoid Them

Cashback promotions are a great way to boost sales and loyalty, but they come with their fair share of challenges. From talking with clients who were running promotions in-house, we’ve seen that getting the results you want isn’t always easy. Over time, we’ve identified some common mistakes that can hinder the success of your cashback campaign. By learning from others’ experiences and taking proactive steps, you can ensure your cashback campaigns hit the mark and achieve your goals smoothly.

These are some of the most common mistakes marketers make when planning their cashback promotions:

Profit Margins: It’s crucial to ensure that your cashback promotions don’t eat too much into your profit margins.

Complex Redemption Processes: Don’t make customers jump through hoops to claim their cashback. A simple, straightforward process is key to ensuring participation and safeguarding your reputation.

Redemption Rates: Monitor these closely. A moderate redemption rate (around 30-40%) is beneficial as it implies customers are attracted to the offer, and not all cashback needs to be paid out, making the promotion cost-effective. However, extremely low redemption rates may suggest a problem with the process itself. Consider simplifying and clearly communicating the redemption process to avoid negative impact on customer satisfaction and brand perception.

Reward Delivery: Deliver on your cashback promises promptly. Any delay or failure can lead to customer dissatisfaction and could potentially