The new mantra for an online business to attract customers or keep them loyal to your brand – CASHBACK
Hello guys! Today we will talk about one of the most popular concepts called Cashback which you can use on your Magento 2 website. In today’s digital world, Cashback is a frequently used term on shopping sites But before we deep dive and learn about cashback please understand the difference between Cashback and Discount. Cashback looks like a Discount, but it is not. Discount is a rebate offered upfront. A discount of 15% on a £100 product means that you pay £85. It means customers only pay what is left after deducting the discount. However, Cashback means you are charged the full amount but the discount is credited back into your account. In simple words, customers pay the complete amount of the product but receive some of it back in the form of cashback. So the difference is nothing but just the process of payment and returns the money. In Discount offers, the customer has to pay the discounted price in the first place wherein cashback he needs to pay full price on items purchased.
Learn more about Cashback
As the word cashback itself explains, cashback or cash return is a form of incentive offered to customers. It differs on what type of cashback you offer to your users. You have the option to give users a percentage of the overall purchase amount or pre-set/fixed amount of the money they shell out! It is an indirect money back process where the amount gets credited to the user account after some time when the purchase has been confirmed. The customer has to only ensure to use the same email address when purchasing online!!
Benefits of using Magento 2 Cashback discount:
- Great opportunity for you to increase sales as well as improve customer engagement
- Drives volume and rewards customers. It helps you increase the frequency of transactions among existing customers.
- It encourages visitors to come back and purchase again.
- Frequent customers will recommend your brand to others.
- It is an excellent way to attract customers as it allows you to make your customers feel they are getting something greater in return for their purchase.
- A win-win situation for both customer and company, as the customer gets some extra cash to shop more and company gets customer’s money in their digital wallet which ensures repeat purchase and loyalty.
- It helps you to retain the users, as the cashback can only be redeemed inside the site.
How Magento 2 Cashback extension works and what it means for your business?
It works automatically, you don’t have to do much except installing our plugin Magento 2 Cash Back or Next Order Discount. Just install this Magento 2 Cashback extension and see the wonders of this functionality. This will definitely boost up your site sale and give you a better conversion rate.
There are various features that can be added to this capability like:
- You can put a limit or cap on how much cashback one can earn on purchases.
- Option to award the cashback at any stage of order like when an order is placed, shipped, or delivered.
- Limit the cashback on each purchase or once during the offer period
- Define the validity of the cashback redemption
- Enable the cashback on particular Products, sub-products, categories like on specific color, size, material, etc.
- Message on the checkout page to show customers that they have been qualified to use the cashback amount in their next order which should be placed within X month of this purchase
- Message on the order confirmation email that you have now X months to use your cashback amount of X pound.
- Send cash back reminders emails to customers X day before the expiry date.
- Auto calculates the Cashback expiry date based on the promotion start date and validity months defined in the offer.
- Allows customers to select the remaining cashback amount on the check out underpayment section.
To make it simpler, we have shared few examples in the below screenshots which will help you understand the cashback concept. Say you want to offer 20% cashback on all your online purchases. The offer period is from 1st July to 31st July and the cashback is valid for 6 months. This means even if a customer purchases an item on 31st July he/she will get 6 months i.e. till 31st December to redeem the cashback.
Here you will see in example one, you have given the option to use cashback capability on every transaction.
However, you also have the flexibility to offer the cashback once per customer during the offer period as shared in example two.
As mentioned above, customer has to only ensure to use the same email address when purchasing online!!
The idea here is to lure the customer to visit again with an intention to redeem the cashback. So, you now know how this functionality works and is so simple to use with our extension!
Wrapping this piece with one final advice. If you’re using cashback promotions online, set time limits on them as this will create a sense of urgency and force customers to buy now!
Hope you liked this piece and found it useful. Do leave your comments and inputs/feedback for us to strive for better always! We bet you will surely have something to say!