It’s hard to find a survey on incentives to customers, where cashback rewards are not the winner. Two out of every three millennials like some sort of “earn as you spend” offer.
What is it that makes cashback incentives so popular?
Let’s look at this from the perspective of both the brands as well as their customers.
Advantages of Cash Back Rewards
Beyond the obvious, as rewards to consumers for their loyalty, cashback rewards allow a lot of space to maneuver. Companies have an infinite number of ways to design their cashback rewards programs.
Unlike the discount schemes, where consumers spend less than usual, with cashback reward points, they spend to earn something back. That’s always a great psychological advantage for companies when it comes to loyalty marketing! The prospect to earn overrides the concern to spend.
With the ultimate aim of consistent revenue growth, they can always tweak their programs. They may choose to reward different sets of loyal customers in different ways. They can promote new products and services, or those that are becoming less popular. If the need arises, they can place cash incentives on the purchase of clearance goods too.
In short, the entire mathematics of cashback rewards is for the businesses to decide. Above all, the upper cap on the amounts of cash rewards, depending upon the number of purchases, time period, and other factors can also be kept flexible.
Cash is inarguably the most fluid of all incentives. It gives a sense of freedom to consumers. They can have a set of limited or unlimited options of – “What they may like to do with the cash?” True that consumer’s options of using the cashback rewards are defined by the nature of the program. Despite that, the very idea of earning cash for spending is exciting!
There’s another nuance to cashback reward points. Consumers are always in control. They get to decide how much to spend, on what, in what time period, etc. to earn their cash rewards.
It’s somewhat difficult to conceive of a win-win situation for brands and consumers when it comes to cash. However, NextBeecherishes precisely such a challenge. Its endeavor is to provide a cash back rewards solution that is revenue augmenting both in short and long terms.
NextBee approach is centered on personalizing and meticulous tracking of the customer journey to increase sales and Customer Lifetime Value. Its cashback loyalty solution backed by advanced data analytics techniques helps businesses expand their pool of loyal customers through referrals. Businesses losing out of their limited number of loyal customers can definitely create a continuous revenue stream flowing out from their expanding loyal-customer base. All they have to do is take all the NextBee advantages on board!
Cash Back Rewards Platform that Helps Design Custom-made Incentive Programs
Consistent interaction between developers, AI experts, and Data Analysts on one side and businesses on the other side has become a prerequisite. It ensures maximum squeeze from loyalty campaigns for businesses in different industries.
Since the rules governing the cashback loyalty program could be unique in different industries, NextBee ensures the extra technological edge. Brands concentrate on – “What they want?” and, “How they want it?”, from their cashback rewards programs. Meanwhile, NextBee teams and solutions continue to translate their experience across industries towards revenue expansion for businesses.
Which Industries benefit the most from Cash Back Rewards Programs?
Cashback schemes hit the scene in the 90s with the Credit Card companies. Today, it’s the E-commerce companies that are taking the lead with cash rewards programs. Thanks to the expanding online marketplace, and consumers with a Smartphone in their hands. We are witnessing the launch of a new cashback rewards app every day. However, a lot of homework goes behind the scenes to make the consumers keep tapping onto their Smartphones to buy. That’s regardless of the beauty and speed of the app, and enthusiasm of millennials buying online from Smartphones.!
Besides, E-commerce, cash rewards are also making headway into media, retail, utilities, and travel industries.
Before moving on to – “How a cashback incentive platform can work wonders?” Let’s take a glimpse at – How cash rewards programs work?
The Workings of Cashbacks Simplified
Cash backs are rewards that customers get for placing their one-time and often sustained confidence in a brand or product. It can be a percentage of the amount spent by the buyer. It can also be a reward in exchange for a contribution to expanding the customer base. Like a reward for spending a bit of extra time indirectly promoting the brand.
Typically, it can work in two broad ways. Cash rewards that work through the point system, or direct cashback.
In the points-based system, customers earn points with every purchase or contribution to the company’s customer-base expansion and consolidation. These points are later converted to cash after a certain amount of points are collected. However, this method is slowly losing steam. Why? Since the customers often find the extra arithmetic woven around the conversion of points to cash needless and cumbersome.
With direct cashback, customers can see their earnings as they buy or contribute. No points-based system involved! This is the in-vogue trend of cash rewards. Who does not like to see dollars accumulating? The $ sign itself is a motivator! It’s clearer, faster, and more engaging.
Cash Back Rewards Structures
Cashback rewards program can be structured in different ways at the most basic level. It could be:
- Point-of-Sale Reward – where the customer gets to see the updated reward amount at every purchase without much delay.
- Tiered Reward System – where the customers are promoted to higher tiers for crossing the threshold spending or number of purchases set for each tier. The reward percentages go higher with each tier.
- Simple Threshold System – where customers get rewards only when they have made purchases or contributed beyond set limits.
In reality, there are countless ways of structuring a cashback incentive program. Thanks to the robust solutions backed by insights from customer data analysis and powered by AI. Buying trends, consumer behaviors, engagement levels, and much else are useful to track and implement a tailor-made cash rewards programs.
No matter, how small or big the company is. It can put accurate cashback rewards programs to work for upward revenue-curves and a stronger base of loyal customers. Let’s see how?
Use the Most Up-to-Date Inventory
NextBee brings you the advantage of an extensive set of technologies, methods, and tools. These go into making the custom-fit cash rewards program for a business.
Advanced data tracking and analysis is just the first step. Every online and offline purchase, social media engagement, and promotional effort is taken into account for each customer in their engagement journey.
All the variables that go into making favorable equations for both the company and the customers are changeable to suit the rewards program. NextBee experts provide the right equations in designing the most suitable cashback incentive program.
RFM (recency, frequency, monetary value) analysis, Purchase-data Analysis, and Shopify integration are just a minor fraction of how much NextBee actually has to offer. Why provide the whole list after all when it’s just a few clicks away!
Last but not the least, businesses can avail Paypal cash transfer and 1099 form handling options amongst others for rewarding their customers in cash.