At this point, acknowledging that the retail game has changed is almost a cliché. If you’ve kept your thumb on the pulse of the industry over the last five years (which, let’s be real: You’re reading an article on retail strategy, so it’s safe to say you’re something of an aficionado), you probably already know things have shifted.

You may have heard the talk about changing tides a million times by now, but addressing the current state of the retail landscape is crucial for staying ahead. After all, you can’t have strategy without a playing field. So what exactly changed?

A whole lot. During the last five years, retailers have had to navigate a new industry altered heavily by shifting e-commerce and multichannel trends, supply chain issues, new generational demands and tastes, and tech developments like artificial intelligence (AI) and machine learning (ML)—just to name a few hurdles. Among the biggest difficulties, however, are rising inflation rates and the soaring cost of living. Money has been tight for consumers over the last few years, with both inflation and the Consumer Price Index (CPI) peaking at a staggering 9.1% in 2022.

Things have been tough for retailers looking to secure customers and keep them coming back for more. But you know how the old saying goes: What goes down must come up (okay, we reversed it). Point is, 2024–2025 trends are looking positive. Inflation has now fallen to 3.3%, consumer sentiment is trending upward, and spending in 2024 has been better than expected.

What’s this all mean for retailers and publishers like you? Opportunity. As the economy gradually recovers, there is a great chance to reengage with your customer base, leverage improved consumer confidence, and capitalize on a renewed willingness to spend. Easier said than done, sure, but there is one game changer you can implement into your retail strategy to get the numbers moving: enhanced rewards.

That’s right. By adding a robust, user-friendly rewards system into your shopping experience, you can help customers save as they spend, boost loyalty, drive transactions, and increase revenue. The name of the game is Rewards-as-a-Service (RaaS).

We teamed up with Ibotta to write the white paper about RaaS. We’re going in on how RaaS can help you tackle today’s challenges, strengthen loyalty, hook customers, and drive transactions. And, of course, we’re gonna cover the deets on the Ibotta Performance Network (IPN), a must-have RaaS platform that empowers brands, retailers, publishers, and consumers by distributing promotions across a vast network to create a dynamic rewards ecosystem.

Ready to boost your biz?

Keep reading to see how rewards can help you take it to the next level.

First things first: It’s all about RaaS

We know you know what rewards are in the context of retail: A customer spends X amount and receives something good, whether it’s a coupon, an exclusive offer, access to new products, you name it. This has been standard practice in retail for a good while now. But the thing is, older ways of doing rewards just don’t cut it anymore. Like those coupons we just mentioned? Well, 22% of recipients toss coupons straight into the trash without looking at them. In our digital-first age, you need a serious and strong rewards system to crush today’s retail game.

What you’re looking for is something called Rewards-as-a-Service.

Here’s the scoop: RaaS is like a souped-up rewards system managed by a provider, and it’s far more robust, engaging, and successful than your everyday coupon distributor. Instead of having to develop and manage your own rewards programs, RaaS equips retailers with the capabilities to hook customers up with access to a wide range of reward options.

We’re talkin’ discounts, cash back, gift cards, exclusive offers, secret prizes, hidden deals, private sales—you name it. RaaS systems not only take the weight off your back when it comes to rewards but also revamp the entire system completely. It’s less stress and more business.

What exactly can RaaS do for your biz?

Glad you asked. Remember some of the challenges affecting retailers we discussed earlier? Well, RaaS can help you clear those hurdles. Take a look at some of these benefits. RaaS can help:

• Boost customer loyalty: RaaS enhances customer retention by offering more appealing, often highly personalized rewards your customers actually want.
• Drive sales: Since RaaS systems are based on incentive models that reward customers for spending, customers are motivated to fork over their cash.
• Streamline reward management: RaaS platforms handle all the hard stuff when it comes to rewards (logistics, numbers, etc.) so you can spend more time on core business operations.
• Increase flexibility: You can offer a wider variety of rewards with RaaS platforms that cater to different customer preferences, like discounts, gift cards, and exclusive offers.
• Encourage scaling: RaaS can grow directly alongside your business, allowing you to scale your rewards programs as your customer base expands.

And that’s to name just a few benefits RaaS platforms can have for your biz. Above all, it’s easiest to just think of RaaS as a one-stop shop for booming rewards. It’s a system that increases customer loyalty, saves your biz time, and drives new commerce. There’s no reason to sleep on implementing it into your business.

How to get started with RaaS

Okay, so you’re hooked. Let’s dig into how publishers and retailers can implement RaaS systems and start crushing the numbers.

First, define your objectives.

Begin by outlining what you want to achieve with your rewards program. Are you aiming to boost customer loyalty, drive sales, level up customer engagement? Or maybe all of the above? Clear objectives will guide the design and implementation of your RaaS upgrade.

Next, choose the right provider.

Selecting a RaaS provider that matches your business’s needs is crucial. When researching your choices, look for a provider with a proven track record, a rich tech stack, and the ability to scale alongside your business. Here are three big factors to keep in mind:

• Customization: Make sure your provider can adapt their program to fit your unique needs.
• Integration: The platform should integrate seamlessly into your existing systems like your CRM, POS, or e-commerce platform.
• Support: This is a huge part of the puzzle. Look for providers that offer comprehensive support—stuff like onboarding, training, ongoing assistance.

Then, design your rewards program.

Once you’ve chosen the right RaaS provider, work with them to build out a program that aligns with your objectives and customer preferences. Think about:

• Types of rewards: Come to a decision about the mix of rewards that will appeal to your customers. This step is essential to getting the most out of RaaS.
• Earning functionalities: You gotta figure out how customers will actually earn rewards. Points for purchases, referrals, social media engagement? Pin this down.
• Redemption process: Make the redemption process simple and user-friendly. Customers want to access and use their rewards easily—nobody likes interface headaches.

Now you’re ready to implement and integrate.

It’s time to get things launched. This part is fairly straightforward for retailers and publishers. The RaaS provider should integrate the rewards system into your existing infrastructure, keeping in mind the demands of your CRM or POS and your data migration needs.

Finally, remember to monitor and optimize.

After you get things launched, continuously monitor the performance of your rewards program. Your provider should offer analytics to track key metrics like customer participation, redemption rates, and overall impact on sales and loyalty. Make sure to review this data regularly to scope out areas that could be improved.

Maxing out the numbers

There are a handful of strategies you can employ to get ROI moving upward. While every business is unique, and thus requires unique approaches, there are three general strategies you can keep at the front of your game plan to keep the numbers rolling full steam ahead:

1. Align your rewards with customer preferences. To maximize ROI, you need to make sure the rewards you offer to your customers actually resonate with them. Think of it as the #1 golden rule in RaaS. But how do you actually do it? Use customer data and analytics to understand their preferences, spending habits, and behaviors. From there, tailor your rewards program to include offers your customers value, like exclusive discounts, early access to products, or special experiences.
2. Play the multichannel game. Reaching your customers across a variety of channels is essential to driving ROI. A seamless multichannel experience (like smooth integrations across in-store, online, and mobile) allows you to capture the needs, wants, and attention of a wide range of customers. You know that whole “cast a wide net” cliché? Well, it applies to the RaaS world, too.
3. Keep your eyes on the data and analytics. Your RaaS provider might take the helm here, but be sure to also monitor the performance of your rewards program yourself. It’s essential. Data-backed insights can help you make informed decisions about strategy and optimize your program. Consider these key metrics: customer acquisition, retention, average transaction value, and overall sales growth. Check the numbers and adjust accordingly.

What’s next for RaaS?

Let’s be clear: The future of RaaS is bright. For one, tech advancements (such as AI and ML) are heavily influencing how RaaS providers are approaching concepts like personalization and data collection. For example, AI and ML enable greater levels of personalization, allowing retailers and publishers to tailor rewards to customer preferences and behaviors in super-pinpointed ways. You will really get to know your customers soon. Plus, AI and ML up the ante on data analysis by giving RaaS providers and retailers more power to predict what rewards will appeal the most to each customer.

RaaS is also set to expand alongside other (even more mind-blowing) tech like augmented reality (AR), virtual reality (VR), and the Internet of Things (IoT). As retail becomes more and more tied to digital innovation, your rewards system must follow suit. Fortunately, tech leaders at the forefront of building out the future of RaaS are working to create more immersive and interactive reward experiences in conjunction with AR and VR. Like, imagine this: Customers could earn rewards through AR-based games or receive notifications about rewards through IoT-enabled devices in their homes. It sounds a little sci-fi, but it’s just around the bend. Make sure you keep up.

And finally: The Ibotta Performance Network

Let’s wrap things up by taking a quick look at the Ibotta Performance Network (IPN).

Launched in 2021, the IPN is a tech platform that finally gives brands, retailers, and publishers the power to influence where consumers shop and what they decide to spend their money on. How does it work? Basically, the IPN enables brands to distribute promotions across their massive (and ever-growing) network of third-party retailers and publishers like Walmart and Family Dollar.

Think of it like this: the Ibotta Performance Network is a super-dynamic rewards ecosystem that enables brands to achieve next-level scale in performance marketing. At the same time, it provides publishers with digital offer content that consumers are actively seeking. This dual approach ensures brands can reach a bigger audience while publishers can deliver valuable and in-demand offers to their users. In short, it’s a game changer for all.