Cashback: how to create value from purchases!
What is it and how does this work
Founded 10 years ago in the United States within credit card circuits, Cashback is a form of savings that has reached its maximum development thanks to the beginning of ecommerce and new digital payment circuits.
This is a phenomenon that is increasingly going to replace the traditional points collection and that is beginning to develop in our Country as well. In fact, today there are about 500 thousand consumers, just over 2% of the total shopping online, with over 20 million products sold through this system.
The word Cashback means “cash back” and consists of a system that allows the buyer to receive a partial refund of the expenses incurred, which will then be credited to the payment instrument used (credit card, loyalty card, current account, etc.).
The bonus is obtained, both when users make their purchases at the affiliated physical stores, and at online shops. Generally, it is distributed after having completed a minimum number of purchases through the same platform. It is also possible to receive personalized Cashback for special events or promotions, or using certain functions of a payments app.
How can brands help?
It is an advanced marketing tool that allows brands to customer loyalty by allowing cardholders to take advantage of a number of advantages such as:
- Return of money: the customer will receive immediately or later, part of the amount spent on his account or on the card used;
- Shopping points: allows to accumulate points that can be used as discounts at all shops that join in the circuit;
- Cumulable: this is a mechanism that can be combined with other promotions and does not exclude, therefore, other benefits normally used by consumers (discounts, offers, promotions, coupon).
Best cases to describe
Domec has made available to BPER its many years of experience in the construction of projects and customer loyalty paths.
The Cards Le Vie del Commercio is a Loyalty Card, which allows the cardholder to be entitled for the accreditation of a bonus converted into euros redeemable at any point of sale affiliated to the initiative. The cardholder is entitled to use any time the bonus accumulated to operate the purchase of goods or services.
Through this solution, Domec has enabled the Consortium to analyze the customers’ buying behavior, launch marketing targeting actions and launch their own competitions (Instant Win)enabling customers to instantly discover if they have won directly from the ticket validation
Domec, moreover, has developed a “Card Linking” project in collaboration with Eataly and Enel, focusing on the association of customer records in the two brands. By using their own status, the holders of the two cards can benefit from more than the standard ones. In particular, all Enel Energia customers in possession of EnelMia loyalty card can benefit from promotions within Eataly stores. The discount is credited as a cashback that can be used for future purchases.
In this way, Domec has allowed both brands to increase their customer base and transactions for each customer, and at the same time users to receive personalized offers and exclusive benefits for each transaction.