In an age of cashback reward system and monthly mega-sale events, you may be wondering if there is any value in giving away cashback to your customers. As a business owner, you may even be considering whether you should spend the money on ads to get new customers instead or invest in improving your products and social media presence.
While there is nothing wrong with advertising to get new customers or levelling up your social media branding, you should not underestimate what cashback can do for your business – particularly to help you build strong customer loyalty.
When people think of loyalty programs, they often think of old stamp cards. But thankfully, that’s in the past. You can now offer your customers something much easier to use – cashback!
Here are four reasons why you need to start cashback for your customers:
1. It builds loyalty
As a business owner, a valuable customer is one who keeps returning to you and tells their friends about you. In layman terms: “customer loyalty”.
Did you know: gaining a new customer can cost up to five times more than keeping current ones when you consider the advertising budget needed to get someone who has never tried your product to make that first purchase. They may need several Facebook Ads, promo codes, and even influencer reviews before finally making that first buy.
On the contrary, getting an existing customer to buy your products again is as simple as giving them that small nudge in the form of a cashback reward system.
2. Encourages additional purchases
Over half of customers have said that they will spend up to 57% more on a brand that they are loyal to. It takes a lot more marketing effort and time to convert new customers than a loyal one. Think of all the digital ads, Google Reviews, and influencer reviews you saw or researched before eventually buying from a brand you’ve never tried before. Most of your customers go through the same process.
Returning customers can also be an ambassador for your brand, helping you grow your customer base through word of mouth.
3. Gain an advantage over your competitors
When both you and your competitor are selling the same thing at almost the same price, who would the customer go for? The one that gives cashback or some form of reward, of course! Get your customers to “prefer” your product by rewarding them. Stand out from the rest with a cashback reward system.
Getting rewarded instantly for simply making a purchase gives a sense of satisfaction and accomplishment for customers. This instantly creates value where customers feel like they are winning by getting back some cash while purchasing their items. It’s a win-win!
4. Build customer loyalty
Cashback is a simple way to make your customers feel valued and it gives them a reason to come back. It’s a small compromise in exchange of better business relationship with your customers.
You can offer cashback to your customers which they can redeem on their next visit. Having this feature encourages them to not just return to your store but to also make additional purchases.
5. Opportunity to get personal with your customer
About 63% of consumers say that they hope to receive personalisation from the businesses they purchase from and are more likely to take notice of the business if they provide personalisation. While you can go down the route of sending your customer a bespoke product with their name engraved on it every year, personalisation can also be something more affordable like sending them a personalised birthday cashback voucher which cost less than RM1 to send – AND it gets your customer spending with you again!
You can start personalising that cashback for your customer by going into StoreHub BackOffice and choosing a cashback percentage amount you want to give to your customers. Just like that, you’ve activated your very own customer loyalty program!
Create that win-win situation for your business and your customers
In the world of retail where competition is made stiff with e-commerce and social media, your business should leverage all the perks that a cashback reward system has to offer – especially when it is also able to give back more value to your customers in terms of the overall experience with your brand.
To enable Cashback, all you need to do is go into StoreHub BackOffice and choose a cashback percentage amount you want to give to your customers and you’re immediately activated to run your own customer loyalty program!