Mobile shopping app Ibotta hasn’t always been the biggest consumer tech company in Denver. No, the business grew from fairly humble beginnings. Four employees in the basement of a firehouse to be exact. Fast forward several years and a few funding rounds later, Ibotta still has that same scrappy start-up mentality, but the business now boasts a team of more than 500 talented individuals and a roster of 1,300 established brand partners offering rebates in the app.
One of the main drivers behind Ibotta’s rapid growth and success? Dynamic segmentation. This unique marketing capability allows retailers to leverage Customer Relationship Management (CRM) data and CPG brands to leverage purchase data to intelligently create segmented campaigns that deliver personalized media content and rebates based solely on a consumer’s level of brand loyalty. For example, retailers can show a loyal customer a more modest rebate and reserve the most compelling offers to entice new customers.
Until 2016, though, when a brand wanted to focus on shoppers who had never purchased their brand before, they often resorted to only offering a rebate for those new customers.
And while that strategy helped garner plenty of new customers, it did nothing to help reward and retain loyal and lapsed customers. Ibotta needed a solution. That’s when Ibotta leverage strategic partnerships and its core data asset to further enhance its customers’ rebate offerings in the app through dynamic segmentation.
With retailers increasingly focused on using technologies that help them acquire new customers and measure incrementality, Ibotta now allows retailers and CPG clients to get the most out of their CRM data and drive truly incremental sales. And with so much content in the app, it’s become a huge selling point for partners who want to bring in new customers while also rewarding those who are still brand loyal.
Since launching Dynamic Segmentation, more than 100 clients have leveraged Ibotta’s capabilities, and on average, this has driven a 20 percent increase in new-to-brand purchasers while also minimizing the loss of those who have purchased with the brand previously.
By doing what few others are, Ibotta is transforming legacy couponing practices into something more beneficial for customers and brands. And ultimately, that forward-thinking will allow Ibotta to not only continue onboarding new partners and customers in the app, but will also help attract top talent from all over the country and the world to further drive industry-molding innovations.