Marketing Operators

Acquisition Offers That Drive Retention: What’s Working - and Why Testing Matters

Jul 29, 2025
Pop-up acquisition offers can significantly shape customer retention and spending. The discussion highlights the effectiveness of cashback incentives over traditional discounts. It also explores the importance of rigorous testing to avoid strategies that might seem successful but hinder long-term performance. Insights on Meta's changing advertising landscape reveal challenges in maintaining consistent acquisition. Effective promotional strategies and customer experience enhancements are key to driving repeat purchases and increasing lifetime value.
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INSIGHT

Cashback Outperforms Discount Codes

  • Using cashback offers instead of discount codes can reduce margin dilution and increase email and SMS opt-in rates significantly.
  • Cashback leads to better email engagement and a 42% increase in repurchase rate compared to flat discounts.
ADVICE

Test Pop-Ups with Split Tests

  • Test pop-up offers via split tests rather than period-over-period to avoid time bias.
  • Analyze cohort behavior post-opt-in for true impact on lifetime value, not just opt-in rates.
ADVICE

Beware Default 10% Discounts

  • Avoid giving standard 10% discount codes on pop-ups by default as their incremental impact is often minimal.
  • Test non-traditional offers like cashback or gift with purchase for better margin and customer quality.
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