© Reuters Magalu bets on Huck to boost app
Magazine Luiza (SA:) launches next Sunday a campaign called Cashback do Milhão. The company, which was already an announcer for Globo’s Sunday afternoon program under the command of presenter Fausto Silva, is now seeking to reposition itself at that time with the entry of Luciano Huck. In the Who Wants to Be a Millionaire, the company will announce the prize draws from R$100 thousand to R$1 million, paid in “cashback”, or “cashback”. The strategy is to drive traffic to the Magalu app, as the winner will receive the prize for an account on the platform.
Since when the dream of being a millionaire through a TV show began in Brazil, with the Show do Milhão, two decades ago, by the presenter Silvio Santos, on SBT, the magic number buys much less. For Magazine Luiza, not counting the investment in media, the action will cost, in prizes, a total of R$ 2.1 million. “Change money” for a business that has around R$ 10 billion in cash, considering the last subsequent stock offering (follow-on) carried out by the company.
To compete for the draw, just buy a product in any of the company’s channels, between September 5 and November 30 – the idea is to increase sales over these months, a period that includes Black Friday, a well-known discount date. Each item purchased by customers generates a number. All prizes will be credited to the Magalupay digital account, which is automatically linked to the CPF of the purchaser.
The Million Magalu Cashback campaign is part of the expansion strategy of the group’s financial arm. In July, the company received authorization from the Central Bank to incorporate Hub Fintech, which had been acquired in December 2020. Since then, it has been able to act as a financial institution.
The company’s marketing director, Bernardo Cupertino Leão, says that the consumer already understands the term “cashback” as a discount. According to Leão, attracting the consumer to the application reduces the Customer Acquisition Cost (CAC) – one of the main indicators of retailers with regard to the investment to attract the consumer. That’s because, once inside the platform, communication is cheaper.
In addition, when receiving the cash discount to spend in stores, or even to pay bills and transfer to another bank, the customer accesses the platform more often – which is also interesting for the company. This recurrence provides the exchange of data and more chances to offer products and services without spending on advertising.
The information is from the newspaper O Estado de S. Paulo.
Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.