In our Behind the Cash Back post we recapped key learnings from our Q4 webinar, focusing on the four changes in shopper behavior that will impact the approach to the retail calendar.
Brands are met with both an opportunity – capture their share of wallets and shoppers – and a challenge. Retain their customers. So, we need to ask ourselves two important questions to help meet the opportunity and address the challenge.
First, how do brands and retailers retain their existing customer base? Then, how do they get more long-term, high-value shoppers from paid acquisition tactics?
Rakuten is uniquely positioned to help answer those questions with solutions that bridge the tactics across the funnel.
This season brings actionable opportunity for brands and retailers
Brands are met with an opportunity to capture their share of wallets and shoppers, as well as a challenge to retain customers. To effectively and efficiently meet the opportunity-challenge, successful brands will focus on programs and tactics that bridge acquisition and re-engagement strategies to retention and loyalty.
Your Q4 Playbook
Q4 planning strategies for success
Start in October – To capture early holiday demand. If spend is finite and consumers are searching, those that capture early will win.
Leverage Dynamic Cash Back Strategy – To meet consumer demand and expectations around deal seeking. Fluctuations in Cash Back can be used as a lever to drive full price efficiently for the business, while sustaining a consistent promo calendar.
Bookend the Cyber Days with Cash Back – Strategically participate in promotions before and after the Cyber Days to win shoppers, drive 2nd and 3rd purchases, and build loyalty.
Deliver a Connected Experience – Lean into services like Rakuten In-Store to deliver a seamless shopping experience and support buy-online pickup in-store strategies.
Q4 Targeting strategies for success
Start with Optimizing the Base Program – Shore up loyalty and other vital metrics to set a strong foundation for layering in targeting strategies to drive specific outcomes with audiences.
Drive New-to-File – Target a specific audience with an optimized Cash Back rate for acquisition.
Shopper Re-engagement – Re-engage recent and lapsed buyers to drive immediate purchase in Q4 and return purchases in January.
Buy Online Pickup In-store – Ensure the plan includes a tier to drive BOPIS with elevated Cash Back.
Holiday shopping on Rakuten starts early and doesn’t wane
Shopping on Rakuten starts early and doesn’t wane. We see strong performance, from October thru December. What we really want you to focus on is – October 1st thru Black Friday. 83% of Rakuten Q4 purchases, happened before Black Friday. The key to success this year is to participate in Cash Back Promotions before and after Cyber Week and our key tentpole days to include more pre-Black Friday deals.
In general, early holiday shopping has increased steadily YoY – and we also see this same behavior on Rakuten. 30% of 2021 Q4 shopping on Rakuten, started in October. This is also on par with the industry. For merchants, this early shopping gave way to a 21% increase in conversion. As we continue to move through the quarter, we see a healthy relationship between the volume of shopping and the conversion rate. The role of December is to capture those last-minute shoppers and focus on retention and sustaining attention for Q1.
Maximize Q4 Performance
- Optimize your base program – Shore up loyalty and other vital metrics to set a strong foundation for layering in targeting strategies to drive specific outcomes with audiences.
- Build in Q3, Activate in October – Use Q3 to drive new-to-file and re-engage lapsed shoppers to build a bigger, active CRM for Q4.
- Leverage dynamic Cash Back – Fluctuate Cash Back to drive full price efficiently for the business, while sustaining a consistent promo calendar to meet consumer demand.
- Bookend the Cyber Days – Plan promotions before and after the Cyber Days to win shoppers, drive 2nd & 3rd purchases, and build loyalty.
Contact your Rakuten rep to get started!