Imagine being rewarded for shopping? This is the cycle promoted by the benefit called cashback, which is nothing more than the company's action of returning to the customer part of the amount spent on the purchase to be used in a new opportunity in the store. This strategy, according to a survey by IZIO&Co, that analyzed the purchasing behavior of more than 5 million consumers from 24 retail networks, guarantee a retention 4,8 times larger in the six months following the purchase. Furthermore, the average spending of those who use cashback is 85% higher than that of consumers who do not have access to the benefit. In an increasingly competitive market, this technique has proven to be an effective strategy for customer loyalty.
According to Hygor Roque, Brand and Partnership Director at Uappi, e-commerce specialist company, "Cashback is a powerful strategy because it creates the perfect cycle of repurchase". When the customer receives part of the purchase amount back, he starts to see the store as a place that values relationships and offers real advantages
The importance of cashback in the omnichannel strategy
However, no one wants to have that surprise of accumulating cashback on a virtual purchase and when arriving to use it in-store being surprised by the phrase: "this cashback is only valid on the website". And vice versa. That's why, the true differential occurs when cashback is integrated into an omnichannel strategy. "Imagine the customer shopping on the e-commerce", using cashback in a physical store and then being encouraged to return to the online environment with a new offer? This fluidity creates a continuous consumption ecosystem, keeping the customer engaged and loyal to the brand across all channels, explain Roque
Cashback goes beyond just a simple money return, he creates an emotional incentive that strengthens the consumer's bond with the brand. When well implemented, cashback increases cross-selling and upselling opportunities,sales technique used to increase the average ticket of customers by offering a more complete option, current or greater, of a product or service that the consumer was already going to buy
Cashback Challenges and Customization
Despite the benefits, the implementation of an effective cashback program requires planning. Omnichannel integration is one of the main challenges, because the consumer expects a seamless experience across different purchasing channels. To achieve this, the company needs to invest in a system that ensures synchronization between online and offline sales systems, with real-time updates.
Personalization is also essential to meet different customer profiles. Cashback programs can be adjusted based on purchasing behavior, offering greater benefits in favorite categories or creating incentives on special dates, like birthdays. CRM tools and data analysis are essential here, because they help segment the database and create more relevant and personalized experiences, adds
Metrics to evaluate cashback success
Some metrics can help measure the effectiveness of the cashback program:
- Repurchase Rate: Indicates whether the cashback is effectively bringing the customer back
- Increase in Average Ticket: Measures if the customer is spending more to take advantage of the benefit
- Omnichannel Engagement: Evaluates how many customers are using cashback across multiple channels
- Retention Rate: Tracks loyalty over time
- Lifetime Value (LTV): Analyzes the impact of cashback on the generation of continuous value for the brand
"Monitoring these indicators helps to understand if the program is delivering a positive return on investment and what adjustments can be made to further improve the customer experience", complete Hygor.
