Cashback loyalty programs can be a valuable tool to help enterprises improve customer engagement and nurture relationships. By rewarding shoppers for their purchases, businesses can help promote brand affinity and keep people coming back for more.
Still, there’s no one-size-fits-all cashback program. It’s important to design and manage a solution that best engages your audience while meeting your business goals.
Learn more about the benefits of this strategy along with helpful tips and best practices for launching your own cashback loyalty program.
Cashback rewards programs are helpful for driving customer engagement — among both new and loyal shoppers. With a cashback program, customers can receive a percentage of money back on eligible purchases. They can then save and spend that money on a future purchase, increasing their engagement with the retailer.
Gen Z and Millennials, in particular, are likely to feel they’re “getting something for free” if they buy a gift using rewards.1
Along with increasing customer engagement, enterprises can access a range of benefits from cashback loyalty programs, such as:
There are two core components of successful cashback benefits programs. It’s important for each business to tailor these components to their audience behaviors and program goals:
Before launching your program, it’s important to evaluate and choose a suitable management platform for your enterprise.
Your loyalty program management software should offer certain capabilities, such as:
Once you’ve set the terms for your cashback loyalty program, you can take these steps to spread the word among new and current customers, and start driving results:
Consider a soft launch to test the new cashback program with a select group of customers. Gather data from this soft launch to better understand how customers engage with the program and which aspects are or aren’t working. Use this data to answer questions such as:
Design a comprehensive rollout plan to make the program accessible to all customers. This rollout plan should include:
Help customers learn about your cashback loyalty program with the right promotional activities and marketing strategies, such as:
PayPal provides next-level tools that today’s enterprises can use to help personalize and transform the commerce experience.
With PayPal’s new advanced offers platform, businesses can reach customers with targeted cashback rewards and product recommendations right on the PayPal app. Retailers can even deliver personalized offers after checkout with PayPal Smart Receipts — helping to further increase engagement and entice customers to come back again and again.
Start revolutionizing customer experiences with PayPal’s new advanced offers program.
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