As a retailer, one of your primary goals is to create long-term, satisfied customers excited to shop at your stores. But achieving that loyalty means understanding consumer psychology — knowing what drives behavioral change in your direction.
Luckily, you don’t need a Ph.D. to decipher consumer psychology. Cash back promotions are proven to bring in new consumers and get occasional consumers to shop more. Let’s break down the basics of how consumers think, why cash back offers are so effective, and which platform you can use to optimize this strategy.
Scientifically, consumers have a negative neurological response to contemplating the cost of their purchases. This "pain of losing money" dampens the excitement of acquiring a new product or solving a problem. Promotions can help turn this negative into a positive:
This process of recognizing value, providing tailored promotions, and strategically managing your approach lays the groundwork for building customer loyalty. By leveraging resources like transaction data (which you already have), you can precisely target promotions, ensuring you don't undermine or cannibalize sales that would have happened. Essentially, you'll intentionally shape consumer behavior.
Considering the positive psychological influences that a well-devised promotion strategy can have on consumers, the only issue for retailers is finding a way to profitably manage, implement, and measure an effective strategy from a single source. That’s where Upside comes in.
With Upside, you can:
Upside polled thousands of retailers to understand the biggest challenges they currently face, and a common theme emerged.
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Request a demo of our platform with no obligation. Our team of industry experts will reach out to learn more about your unique business needs.