In a transformative shift, retailers are bidding farewell to traditional mail-in rebates in favor of Venmo-based reimbursement schemes. The convenience and acceptance of digital payment services like Venmo and PayPal are fueling this cutting-edge approach to customer incentives.
Swiftly, a tech company, recently assisted California-based grocer The Save Mart Companies in launching a groundbreaking alcohol cashback program. Shoppers can now save brand-funded offers to their loyalty IDs through Save Mart's mobile applications, with reimbursements conveniently delivered to their Venmo or PayPal accounts following their purchase.
According to the Pew Research Center, three out of four American shoppers have already embraced app-based cash transfers, such as Venmo, PayPal, Cash App, or Zelle. These platforms have become so integrated into daily life that "Venmo" has even become a verb. Brands are increasingly adopting payment platforms to reimburse customers for special incentives, replacing the need for traditional mail-in rebate checks.
Swiftly's Chief Technology Officer, Sean Turner, aptly described Venmo and PayPal as the modern-day equivalents of mail-in rebate checks, simplifying the process and reducing the physical effort required from consumers.
This digital rebate strategy has gained traction across various industries. Examples include Circle K offering $1 PayPal or Venmo rewards for purchasing Coca-Cola subsidiary Energy Brands' Glaceau Smartwater; and Reckitt's app-based rewards program utilizing Venmo and PayPal for Enfamil baby formula rebates.
Turner further highlighted that this technique enhances consumer satisfaction and streamlines transactions, creating a delightful experience that goes beyond traditional discounts or sales. Save Mart's Senior Vice President and Chief Digital Officer, Tamara Pattison, also emphasized the potential of Venmo to deliver savings and digital engagement, particularly in high-spend categories. This marks Save Mart's foray into offering discounts beyond their regular channels, a strategy well-suited for the alcohol industry with its strict payment rules.
To benefit from these discounts, customers must be Save Mart loyalty members and opt-in by clipping the alcohol rebate coupon on the company's website or mobile app. The magic happens when customers identify themselves in-store using their phone numbers.
Beyond groceries and beverages, other sectors are also embracing this digital rebate revolution. August, a period care brand, uses Venmo to refund "tampon tax" from over 20 states. Setting up the software is straightforward, making it accessible to a younger audience familiar with digital payments.
This shift towards app-based rebate programs not only modernizes transactions but also benefits retailers by reducing costs associated with mailing checks. Moreover, customers, especially younger adults, find this approach more intuitive and less dated than traditional check-based rebates.
In addition to enhancing customer satisfaction, these Venmo-based reimbursements can serve as a means for retailers to build customer lists and drive subsequent communications. The Perfect Bar's free bar offer, for instance, encourages clients to join a mailing list. As the retail industry continues to adapt, embracing digital payment platforms like Venmo and PayPal is proving to be a winning strategy for both retailers and customers alike.
