Cashback, which in Portuguese means ‘money back,’ is a strategy that allows the customer to recover part of the amount spent at a particular online store, usually as credit for future orders. Its main function is to encourage repurchase and strengthen the relationship with the consumer, offering a sense of savings and motivating the return to the platform to take advantage of their accumulated credits.
According to a 2023 survey, promoted by IZIO&Co, a platform for loyalty programs and activation for retailers, cashback was responsible for an 83.5% increase in shopping expenditures. Analyzing the behavior of 1.4 million consumers across 20 different retailers, there was a 17.6% growth in the average ticket.
Over time, cashback contributes to the creation of a repurchase cycle, demonstrating that each transaction is valued by the company, which provides a tangible benefit to encourage new orders. However, although it is very efficient, it is essential that companies do not limit themselves to it but invest in diversified loyalty strategies to maintain audience engagement.
Main Mistakes – What to Do?
A common mistake is to rely solely on this type of action, which can cause the person to value only the financial benefit, to the detriment of the complete experience. To avoid this, the cashback should be seen as part of a broader strategy that highlights the quality of the products and the added value of the brand. Another key point is the clarity of the terms of use. When poorly explained, the rules can lead to frustrations and even drive away buyers.
Use of other tools
Apps that offer promotions and exclusive discounts for registered users, as well as personalized content, provide a more direct and accessible experience, keeping the public always updated on the best offers. Another interesting strategy is marketing automation, such as sending segmented emails and messages based on buying behavior, which helps to keep the brand present in the daily lives of consumers and strengthen the connection with them. The combination of different solutions is the most effective approach. For example, after a purchase, the customer may receive suggestions for related products or discounts, encouraging the strategic use of their credits.
Attention to personalization
One fundamental care when implementing customer loyalty tools is to ensure balanced customization, without being invasive, always prioritizing the user experience and respecting their data privacy. Communication should be transparent and clear to avoid possible confusion or frustrations. Additionally, it is essential to monitor the impact of these strategies, avoiding excessive reliance on financial promotions.
It is important to remember that true loyalty goes beyond the use of specific tools. Success lies in the balanced combination of financial benefits, product quality, and the experience offered to customers. Creating value for the audience at each stage of the journey is what ensures their return, not just for the rewards but for the trust in the brand and the satisfaction provided.
