3 benefits of a Cashback Program

One of the most effective ways to satisfy customers is the ability to receive monetary value that can be spent immediately. You can make all this possible through a Loyalty Program that is based on Cashback mechanics.

This program is the best choice for merchants who decide to adopt it, both in terms of efficiency and in terms of use that is immediate and easy for end customers.

1. Immediate gratification for customers

All of us will have to take advantage of the benefits offered by a Loyalty Program that includes Cashback. Cashback, in fact, allows you to be scalable and applicable in any situation involving digital payments.

The operating mechanism is extremely simple. The customer makes a purchase and, at the time of the transaction, a small monetary value is credited to their Wallet.

Immediate customer satisfaction from obtaining real monetary value through Cashback inclines them more to return to the store and use the accumulated credit to make further purchases. Cashback can be applied to a wide range of products and services and is presented to customers in two different ways, at the sole discretion of the Brand.

The Fixed Amount Cashback grants the customer a credit of a predetermined value that is added directly to their Digital Wallet after a specific purchase. For example, the customer receives a credit of 5€ when he spends at least 50€.

The Variable Value Cashback offers the customer a credit on their Wallet calculated as a percentage of the amount spent. This percentage can be constant, activated only when certain spending thresholds are reached, or applied only to the purchase of specific products. For example, a customer who buys gym products could get a 20% Cashback on all orders over €50 or only on weight purchases.

These Cashback strategies aim to incentivize customers to continue shopping at the point of sale by becoming attached to the Brand, giving them immediate benefits and flexibility in managing the accumulated credit.

2. Building Strategic Partnerships with Other Brands

Adopting a Cashback program is a significant benefit to both the Brand and the consumer. For the Brand, this solution offers the possibility to allow customers to use their Reward exclusively within their sales network, as well as in affiliated stores.

This flexibility opens the door to various forms of collaboration with other brands and allows you to establish connections between businesses operating in the same region.

Cashback is widely appreciated by customers thanks to a simple redemption experience, which guarantees them an immediate economic benefit on products of their interest.

This mechanic is one of the most effective methods to increase Customer Retention but also a powerful source of attraction for new customers.

Brands that implement Cashback, in fact, are able to tangibly distinguish their offer from that of the competition.

3. A flexible monetary asset

Loyalty Programs that implement Cashback are a valuable asset for Brands, as they allow them to offer customers an extremely flexible monetary asset.

This asset can be easily converted into different currencies, creating a unique opportunity for customers to use their Rewards in different ways and in affiliated points of sale also in different parts of the world.

This flexibility not only greatly expands the options for customers to use Cashback, but also has a positive impact on the perception of the value of the Program.

When customers see that they can use their Cashback in different currencies, for example, to make purchases abroad or to take advantage of international savings opportunities, the loyalty program becomes even more attractive.

In addition, this feature gives a significant competitive advantage to the Brand, making it more attractive to a global clientele and distinguishing it from competitors.

The ability to allow Cashback to be used in different currencies reflects the Brand’s commitment to providing customers with a tailored loyalty experience, adapting to their needs and preferences, both locally and internationally.

Domec’s solution

Launching a Loyalty Program can be a complex challenge for small merchants and large businesses. This is why contacting an external supplier, who can guide you from the initial idea to the launch of the program, is the most effective choice.

Domec is the ideal partner to offer a complete solution in the field of Loyalty and digital payments.

Implementing a Cashback service within your Loyalty Program is really a breeze. Relying on the solution offered by Domec allows Brands, through the activation of the service on the Domec Tools™ platform, to include in the program management software an option to recognize the customer a fixed value or a certain percentage of Cashback.

With Domec, you won’t have to worry about anything. We are here to assist you in communicating your chosen program and managing customer support.

What are you waiting for? Contact us for more information!