Big brands do not lack imagination when it comes to building customer loyalty and attracting new customers. Cashback is one of those levers that are widely used on the internet. The principle is simple: a site lists all the best deals of the moment and handles traffic management. When internet users buy a product or service from a cashback site, they receive a kickback in points or money which they can then convert into real currency or use for other purchases. However, what works very well online can also work well in physical stores.
Cashback: a semantic development
While the cashback we are talking about is the reward type that rewards you for your purposes, we should also briefly mention that this is different from the physical cashback you get in stores, just to avoid confusion.
French Parliament established this cashback system in summer 2018. The aim of it is for a customer to get change in physical currency when using their card at a retailer’s. If a product costs 30 euros, the customer can pay 50 euros with their bank card and pay 30 for the product they bought and get 20 euros in actual cash as well.
This system is additional to the cashback you get in stores, and is a new service to improve the customer experience, attract more people to stores and respond to a new need that has arisen in relation to the scarcity of ATMS in less densely populated areas.
How does in-store cashback work?
In-store cashback or commercial cashback works almost like its digital counterpart. You find a good deal, you shop in store and you get some of the purchase price back. However, although it may take place in a physical point of sale, in-store cashback requires you to use a login and have an account with a site that lists the best deals of the day. This site then shows the participating brands, how much cashback you will get and the dates of these special offers.
The customer will make their purchase in store. They will then scan their receipt or physical proof of purchase into the site’s mobile app. When the customer has logged in and the purchase is confirmed, they will receive their cashback based on the site’s terms and conditions (with a points system or an actual monetary value within a certain period).
Please note that certain in-store cashback offers can even be combined with special offers or sales. So you make your purchases in store without changing your usual shopping habits. Generally speaking, the cashback rate can range from 2 to 10%, with a few exceptions for one-off offers that can go up to 12 or 15%. This decision obviously depends on retailers, who can thus adjust their physical and digital cashback in real time.
The benefits of in-store cashback
For a retailer, in-store cashback is a new commercial lever that is becoming more and more popular. It is, in fact, common to combine it with marketing campaigns in order to boost sales at key times of the year. It is also used for:
- Attracting new customers: to bring customers into your store who did not visit initially.
- Developing a new offer: to promote a new product or service commercially.
- Building additional leverage in your marketing strategy.
- Concretising your omnichannel approach and completing the digital cashback on your ecommerce site.
- Building loyalty and rewarding your customers by creating a cashback offer only for certain types of customers.
- Selling large amounts of unsold stock to empty your warehouses and to get ready for the next commercial season.
- Optimising your performance marketing: with cashback, you only pay when you sell. Your marketing budget isn’t wasted and results are guaranteed.
Setting up a cashback strategy doesn’t require any radical changes in your information system or business. To achieve this, you can contact a cashback site or a specialised agency that will put you in touch with each other and manage the whole process for you. It is a real time saver that allows you to focus solely on generating business and measuring the return on investment. No more distraction with operational details.