Cashback is probably the simplest Loyalty Scheme, but it remains one of the most effective for Customer Loyalty. In fact, for a Customer there is nothing more satisfying than receiving a monetary value (fixed or percentage) that can be spent immediately.
The inclusion of a Cashback service in your Loyalty strategy can be very useful in terms of efficiency and cost containment, since it does not require any additional expenses for the Company.
The Cashback is characterized by the simplicity which the mechanics is proposed. The customer makes a purchase and, at the time of the transaction, a small monetary value is immediately recharged to his wallet.
The immediate gratification the customer receives makes him more likely to return to the store to redeem his Benefit. Cashback can be offered on any type of product or service, and have different values.
A fixed value Cashback, offers the customer a real monetary value, which is paid at the time of the transaction and can be spent on a subsequent order. For example, the customer gets a 5€ voucher after a minimum purchase of 50€.
A variable value Cashback offers the customer a discount on the final price. The deduction on the price is recognized immediately, on the transaction carried out. For example, the customer gets an immediate discount of 5€ on a purchase of 50€, paying at the checkout 45€.
The percentage on which the Cashback is calculated is defined on the basis of the Business objectives, and can be made available under certain conditions.
Cashback can bind to other types of promotions, creating hybrid mechanics such as Extra Cashback or linking to existing Scheme such as Vouchering or Point Accumulation.
Choosing a Cashback system is a great advantage for both the merchant and the customer. Merchants reserve the opportunity to spend the Benefit only within their own sales circuit, or in affiliated stores.
This opportunity opens the door to different forms of collaboration with other Brands, but also to create connections between stores belonging to the same territory or to offer benefits to customers of the same credit institution.
Cashback is one of the most appreciated tools by Customers, as it has an extremely simple delivery and redemption mode and offers an immediate economic advantage, on items of interest to them.
This mechanism is one of the best to increase the Retention of its Customer Base, it is also a natural source of attraction for new customers, able to differentiate the offer immediately compared to competitors.
Implementing a Cashback service within your Loyalty Program is really simple. What you need to do is rely on the solution offered by Domec that, through the activation of the service on the platform Domec Tools s, is able to include in your program management software an option that can recognize the customer a certain percentage of Cashback.
This solution is compatible with all other Loyalty services offered by Domec, thanks to the completely modular nature of our platform. Rewards are represented by transaction discounts, so there are no additional costs for handling and redeeming.
In addition, the flexibility of the solution makes it naturally compatible with monetary conversion mechanics, being able to offer the same percentage of discount in each currency. This is very useful with regard to the application of this scheme in the case of e-commerce or in non-physical stores.
Domec also gives you full support on marketing and commercial strategies, and in communication to customers. What you have to do, is just tell us the amount or percentage of discount you want to reserve for your customers, we’ll take care of the rest.