- Multiple brands saw 40+% month over month customer acquisition growth rates
- Multiple brands maintain a 60+% retention rate
- One brand saw a 15+% month over month increase in user spend
Delivery companies, defined at Prizeout as any app-based platform that allows customers to order goods ranging from food to transportation to retail products, are ordering up success, and we’re talking about a whole lot more than just food or groceries. With the on-demand economy booming, many companies have taken advantage of this trend to provide all types of services to the fingertips of consumers, and they’ve certainly reaped the benefits. In this challenging climate, though, merchants must continue to implement innovative methods to grow and drive key success metrics.
Acquiring new users
Three major delivery brands leveraged Prizeout’s unique positioning as a cashout platform to access niche, and often hard to reach, audiences. During Q1 and Q2 of 2021, each company regularly saw a 40+% monthly increase in new customer acquisitions. This was accomplished by utilizing Prizeout’s strategic consulting team, engaging in the audience testing process, and identifying key variables that move the needle like ad creative and increased consumer offers.
As consumer spending patterns shift, merchants must identify strategies to keep consumer spending within their ecosystems; finding new ways to stay top-of-mind for customers, thereby extending their lifetime value. Retention strategies may include leveraging seasonal trends, rewarding spend, or promoting a new offering. Each of the three delivery brands leveraged Prizeout to increase retention by defining brand specific goals, communicating with Prizeout’s merchant success team, and using the wide variety of data available to zero in on the most successful combination of ad creative, audience targeting, and consumer offers. As a result, all three brands were able to reach a 60% customer retention rate.
Increasing average spend
Increasing customer spend is one of the largest challenges that many brands face. Developing customer engagement and loyalty is a start, but increased spend requires a real shift in purchase behaviors. One specific national delivery brand took advantage of Prizeout’s testing capabilities to focus on increasing average spend, taking the time to not only identify a key user base and appropriate engagement messaging, but also to implement an incentivized offer that increased average user spend by 15% month over month.
Today’s customers want to feel like they are special and are always trying to find a way to make their money go further, so they can get more of what they want. At Prizeout, we see a significant increase in sales, customer acquisition and brand loyalty when merchants offer added value.
And because merchants don’t pay for promotions unless there is a direct conversion, many brands can offer more enticing promotions while still seeing a reduced promotional cost.
A win-win for everyone.