Description
In the era that we live in, there is a compelling case for grocery stores to use cashback to guarantee customer loyalty. With the rise of organized retail, any venture in this direction is a potential disruptor. Th is is a relatively uncharted territory, and it is a significant business opportunity waiting to be knocked.
With value being highly sought after, digital wallets and cashback apps can extend this model to the traditional grocery with widespread applicability. Purchases at the grocery store are more frequent than at any other channel and one can imagine the magnitude of cashbacks that the digital wallet’s customers stand to win if they shop from their partner retailers. Moreover, digital wallets can achieve a defi nitive loyalty that will make switching very difficult. Th is value can be later redeemed at any of the partner online stores. Delving deeper into customization, by partnering with grocery stores, cashback apps can achieve category-specifi c focus with a high accuracy.
Th e location of the neighborhood grocery store and the customer can act as a marker and an indicator of how to target a particular segment, which products to provide the off er on and, more importantly, where and how to redeem them. Retailers can off er stretch incentives on total baskets over a certain size to customers staying away from the store to compensate for higher travel costs.
There exists a compelling case for cashback apps and digital wallets to expand into newer categories and add another set of customers to their already-Lokesh Arora, Sr. Vice President burgeoning user base.
