You still don't know what cashback is? Don't worry, because I'll explain: cashback is an English word that in Portuguese means "money back". In retail or wholesale trade, online or offline, this term refers to the procedure of returning to the customer a portion of the money he has spent on the purchase of a product or service.
It is now that you ask me, “What is this story, James? Return the customer's money? Have you lost your mind?”, and I reply, “Very calm at this time”. Next, I'll show you exactly how it works. Keep reading to know the great advantage of cashback for your e-commerce!
Access and read our post " Loyalty programs work in e-commerce ". Discover how to keep your customers happy and active using rewards.
WHAT IS CASHBACK: HOW DOES THIS SYSTEM WORK?
Repeating what I just wrote, but in other words, cashback is a rewards program that is premised on returning a small percentage (1% to 5% on average) of the money spent on each purchase to your customers.
This program basically works like this:
- The consumer registers and logs in on the cashback operator's website and in its virtual store;
- Then, he goes shopping normally;
- In effect, the system tracks the purchases made by the customer and calculates the amount to be returned;
- A part of the money returned goes to the operator, which passes on a portion to the customer;
- The money returned to the customer is suspended until it reaches a minimum amount for redemption;
- Finally, once the redemption amount has been reached, the customer requests a deposit into their checking account.
Look, how wonderful! You've just returned money to your customer and that certainly made them very happy. Well, I think you should too, as this procedure gives you an interesting edge over the competition. Check it out in the next topic!
Access and read the article " Brand Pyramid " as well. This way, you'll learn how to distinguish at what stage of loyalty your customers are in relation to your online store.
ADVANTAGE OF CASHBACK IN E-COMMERCE
Acquiring new customers is more work and more expensive than keeping old customers. In addition, loyal customers buy more than those who are not. Therefore, it is important to invest in loyalty programs.
Cashback, for example, turns a regular customer into a customer. It creates a vicious circle in the consumer's mind, which makes him want to buy more often in order to benefit from the replacement of money, with which he can make even more purchases.
On the other hand, to win a new customer it is necessary to invest in Content Marketing campaigns, sponsored links, Social Media, traditional Marketing and other forms of advertising, some of which are quite expensive.
However, if you can establish a good cashback program in your e-commerce, then you can make your customers buy more than once. Thus, returning money to win a customer ends up being cheaper than winning a new customer.
Very well, but how to start a cashback program in your online store? The first step is to make a partnership with an operator, subject of the next topic of this same article.
Access and read also the post “ 6 tips to build customer loyalty in your online store ”.
CASHBACK CARRIERS
There are a number of cashback operating companies in Brazil, check out a list:
- beblue
- win it back
- Méliuz
- mooba
- mycashback
- PicPay
- Popup
- Trigger
Search for these and more on the web, check the conditions, read the contracts and find out if it's worth integrating one of them into your online store. Make your customers happy and they will come back for more!
Access and read the post " Free shipping and loyalty program " as well. Learn how to use these two resources in your e-commerce business.
