by webSaver
November 12, 2024
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CPG Brands face the ongoing challenge of acquiring new customers, increasing the value of existing customer relationships and building long term customer loyalty. There are many strategies available to Brands to pursue these goals but many are complex and expensive to execute due to technology costs and other factors.
For these reasons grocery receipt based validation solutions have emerged as an ideal go to strategy for CPG Brands seeking to build long term customer relationships because of their speed to market, ease of use, no third party interactions, no technology requirements and low overall cost.
Grocery receipt validation solutions have become a cornerstone for CPG brands aiming to enhance their promotional strategies. By leveraging these tools effectively, brands can drive larger and more frequent purchases while cultivating consumer loyalty.
Here are five actionable and easy to implement receipt validation strategy ideas to increase Brand transaction frequency:
1. Incentivize recurring brand purchases over time
This is the most popular strategy that Brands are having success with as it leverages the core capabilities of receipt validation solutions. In this strategy CPG Brands incentivize consumers to purchase the brand’s products multiple times over a set time period. For example, a Brand can offer a $5 cashback bonus, or a free product, or a loyalty points reward, after four validated purchases in a four week period.
With this strategy consumers are motivated to repeatedly buy the brand’s products to unlock the reward(s), fostering habitual purchasing behavior. For the strategy to succeed the Brand should create challenges that reward frequent purchases within a specific timeframe that are realistic and attainable for a dedicated consumer. The urgency and rewards drive increased shopping frequency and the greater exposure to the Brand and its products create the possibility for long term behavioural adjustments and loyalty.
2. Incentivize product bundle purchases
In this strategy a Brand encourages consumers to buy multiple of its products together by offering rewards for bundle purchases, which increases overall transaction size. For example, a snacks brand could offer a cashback incentive or bonus points – if the brand also operates a loyalty program – if a shopper purchases a snacks bundle that includes potato chips, other crispy snacks and dipping sauce all from the same brand in the same transaction.
This product bundling strategy increases the overall transaction size and frequency as well as the consumer’s engagement with multiple brand products creating the possibility for additional purchases in the future.
3. Provide tiered rewards to encourage greater frequency and size of purchases
In this strategy Brands implement a tiered incentives structure to reward shoppers based on the frequency or total value of their purchase(s). It is a more elaborate version of strategy 1. in that it incentivizes consumers for undertaking specific actions in a restricted time period but rewards them differently based on the total number or size of brand transactions.
For example a Brand could provide $2 Cashback to consumers that made 1 purchase in 4 weeks but increase the reward to $10 Cashback to those that made 4 or more purchases in 4 weeks. A non linear incentive that is sure to capture the attention of the Brand’s customers and motivate less frequent consumers to take advantage of the offer. The reward can also be provided based on consumer spend, such as a $2 cashback reward to consumers spending $20 on the Brand’s products, but increase the reward to $5 for spending $40 or more on the brand’s products.
These tiered reward systems motivate consumers to purchase more often or buy more to unlock higher rewards, driving up transaction frequency and value.
4. Integrate loyalty program with Receipt Validation Solutions
Linking receipt validation rewards to existing loyalty programs to increase transaction frequency is another popular and proven way to leverage the capabilities of receipt validation solutions.
In this strategy a beverage brand could integrate points from validated purchases directly into an existing loyalty app, enabling consumers to accumulate points faster for discounts or free products. If a Brand does not have a loyalty program webSaver can integrate loyalty program capability into the campaign to make this option is available to them, so that a Brand could for example issue a consumer 100 points each time they make a purchase and allow for a product or cashback redemption once they have accumulated 1,000 points.
The integration of simple to execute receipt validation solutions with loyalty programs reinforces repeat purchases, rewards frequent customers and strengthens brand allegiance.
5. Utilize contests and gamification to increase transaction frequency
In this strategy Brands can use receipt validation campaigns to make repeat consumer purchases fun and rewarding. They can do this in a simple way by having each validated purchase count as an entry into a contest, or in a more evolved way by having the validated purchase allow consumers to take part in some kind of cool, fun online game where they can win prizes. For example, a cereal brand could implement a “Spin-the-Wheel” game, where each validated purchase earns consumers a spin to win prizes or additional discounts.
Yes the more elaborate gamified version is also a contest, but a more fun and cool version of a contest that generates consumer interaction and increases consumer engagement and positive emotion associated with the brand.
* Bonus ‘Mix and Match’ Strategy:
CPG Brands can also ‘Mix and Match’ elements from various strategies to generate even more attention, interest and excitement from consumers. For example a brand could offer a reward to consumers each time they make a purchase over a four week period, then also provide an additional prize for completing the four weekly purchases, and also have each purchase qualify as an entry into a contest. The options are limitless.
When deployed effectively, these Receipt Validation strategies can achieve the dual goals of increasing transaction frequency and strengthening brand loyalty thereby transforming occasional buyers into frequent customers. Receipt validation also provides precise data on consumer purchases, enabling brands to engage with consumers in a way that resonates because they are provided with offers that are personalized and relevant to them.
The webSaver Receipt Validation platform enables CPG Brands to effortlessly implement consumer offers and promotions without the need for third-party involvement, ensuring cost-effectiveness and efficiency. Brands can incentivize specific purchases with a range of reward options tailored to their objectives. Rewards can include Cashback, Prizes, Products, Coupons, Gifts, Samples, and more, offering flexible solutions to meet diverse promotional goals.
With over 10 years leading the Canadian online coupons marketplace and 150 Million coupon issued we know coupons. We’ve worked with 90% of Canada’s leading consumer packaged goods brands providing them with the online coupons and cashback offer solutions that generate real value for their business. Whether your strategic objective is customer acquisition, customer lift (Increased transaction size and frequency) or customer retention webSaver can help.
