There are various types of promotions that are familiar to consumers, including discounts, free products, points, cashback, stamps, and stars. In this spotlight news, we aim to explore consumer preferences for special promotions that require specific terms and conditions to redeem, such as cashback, stamps, and stars.
Cashback promotions is where they receive a voucher that can be used as a discount for their next transaction, adding extra value to their purchases. Another one is the Star program, where customers collect Stars that can be redeemed for prizes or entries into prize draws. Similarly, the Stamp program allows customers to gather Stamps, which can later be exchanged for other products.
Looking at the sales growth in promotion period, cashback mechanism remains the most effective method for boosting sales, followed by the star mechanism. Cashback is preferred due to its ease of use, as it provides immediate benefits without the need to accumulate points and can be utilized daily.
(Source : Alfamart POS Tracking)
"Lebih baik cashback karena langsung, ga perlu ngumpulin." —W, Male
More words about their cashback preference, cashback promotions are typically applied to specific product categories, and members tend to prefer promotions aimed at household necessities such as cooking oil, sugar, and rice.
"Untuk IRT seperti says lebih baik promonya untuk kebutuhan rumah tangga seperti minyak, gula, dan beras." —I, Female
Cashback with value as a promotional highlight is more effective in increasing sales, especially with value more than 20.000.
(Source : Alfamart POS Tracking)
"Cashback bisa dipakai untuk produk yang kita butuhkan dan jumlahnya lumayan, bisa sampai 20rb" —W, Male
About star promotions, customers are more interested in prizes with more frequent draws, even if the value is not very high, compared to large prizes with only a single draw.
(Source : Alfamart POS Tracking)
"Lebih baik hadiah mingguan, karena lebih sering, kemungkinannya lebih besar untuk menang. Kalo tahunan juga keburu lupa."—I, Female
Meanwhile on stamps, stamps prizes are redeemable for collectible items are higher than those who exchange it for kitchen tools. This is largely due to the high number of stamps required to redeem kitchen tools (40 stamps) compared to collectible items (10-15 stamps). However, kitchen tools could become more popular if the required stamps were reduced, as the majority of minimarket shoppers are housewives.
(Source : Alfamart POS Tracking)
"Stamp menarik, kayak nabung. Kita bisa tukarkan barang menarik tanpa bayar."—W, Male
For collection product, customers are more attracted to products that allow them to collect entire series and become decorative items, such as Bricks Toy.
(Source : Alfamart POS Tracking)
"Aku suka banget sama hadiahnya, menarik. Waktu itu tukerin Sanrio Charm sama Bricks Toy."—A, Female
Hereby we conclued, that cashback remains the most effective mechanism for boosting sales, particularly when the value exceeds Rp20,000. Customers are highly motivated by the immediate and tangible benefit, which encourages repeat purchases and builds loyalty.
For programs involving prize draws, customers tend to favor prizes with more frequent opportunities to win, such as weekly draws. This increases their chances of success and maintains their engagement throughout the promotional period.
Stamp programs, on the other hand, are most appealing when the collected products can serve as decorative items, especially if they are part of a unique or interesting series. This element of collectability and aesthetic value adds an emotional connection, making the program more enticing for customers.
(Business Analys Alfagift/Image Doc. Photo by Karolina Grabowska on Pexels).