Getting users interested is just the first part of creating a successful cashback rewards program. Retaining these users means turning their initial interest into real engagement and lasting loyalty.
When used effectively, incentives go beyond just the idea of saving money.
Incentives can start a member's shopping journey
At the beginning of the user journey, rewards program incentives lower the barrier to entry and encourage users to engage in a shopping rewards program right away. Whether the goal is to get a user to install a browser extension, enroll in a rewards program, or make their first purchase using the program, a cashback bonus can be the nudge that turns a consideration into quick action.
Our data shows that offering a bonus upon signing up improves conversion rates significantly for new users. Adding limited-time offers as a way to encourage cashback program members to buy can make purchases even more enticing, creating a sense of urgency to take action immediately.
... and keep the momentum going
After users enroll, incentives keep the purchase momentum going. Layering a bonus on the first purchase encourages people to buy now, with additional rewards for second or third purchases that help reinforce buying habits. Another way to drive more participation in a program is to offer increased cashback rates, or “boosted offers.” A large Wildfire client saw a 91% increase in offer activations and a mind-blowing 756% increase in orders when they offered increased cashback rates for a limited time—proof that the right incentives can drive impressive results.
By rewarding users for interacting with various touchpoints, such as downloading both a rewards program’s browser extension and a mobile app or mobile extension, programs can enhance user engagement and create more opportunities for cashback earnings. This multi-channel approach helps solidify the loyalty program’s long-term value.
Re-activating dormant users
Targeted incentives are also effective for bringing inactive users back. Personalized bonuses for dormant users make them more likely to return and shop again. In fact, that same Wildfire client who launched a boosted offers campaign found that 33% of people who bought from a merchant with a boosted offer had been inactive beforehand. These results show just how powerful incentives can be for re-engagement.
Additionally, incentives maximize marketing effectiveness. A recent email campaign featuring boosted offers saw up to 400% higher click-through rates than standard promotions. The takeaway? Incentives drive action and make users more receptive to messages across all channels.
Conclusion
While incentive structure may differ, the results speak for themselves. The data clearly proves that rewarding user behaviors has a real impact. Incentives aren’t just an extra feature- but a strong business strategy.
