A leading high-end department store wanted to test the incremental value gained from their Rakuten program. That is, revenue that wouldn’t be realized without offering Cash Back through our platform.
Our study proves that buyers who receive Cash Back through Rakuten are more valuable compared to buyers who don’t receive Cash Back.
We designed a test to evaluate the impact of Cash Back against a control group that didn’t receive Cash Back by looking at the performance of three (3) distinct Cash Back rates:
The test examines the relationship between the base and elevated rates and how program media impacts performance.
For the test, ‘value’ is defined as net sales per buyer.
A random sample of Rakuten members was split into the zero/non-zero Cash Back experience.
Cash Back drove incremental impact for the department store
Buyers who received at least 2% Cash Back through Rakuten are more valuable to the retailer than buyers who didn’t receive Cash Back.
By evaluating performance at various rates, Rakuten can recommend the most favorable program rates by program initiative and goal.
Cash Back is the most effective when it’s paired with media and tailored to the specific campaign plan.
Executing an optimized base rate, strategically pulsing elevated Cash Back, and using media to amplify creates a bundle effect in which each component makes the other stronger.
Cash Back drove a 13% lift in incremental revenue.
Cash Back drove 29% more shoppers than the retailers would’ve seen without the incentive, demonstrating the effectiveness of Cash Back as an engagement lever.
Those visits resulted in positive impact to conversion with +61% lift in incremental sales per buyer. Average order value saw an incremental lift of +64%.
Media amplified shopping trips, creating a multi-day halo to sales when paired with increased Cash Back rates.
Rakuten Cash Back generated a 70% improvement to retailer’s AOV after returns.
