The cashback technique is very interesting on a customer relationship management point of view.
What Is Cashback?
A cashback website propose you to log in, and then to give you money back on e merchants sites while you purchase something. This is supposed to be a win-win-win situation:
- The company that sets a partnership with one of those sites gets leads and customers from it.
- The customer gets great deal on its purchase
The cashback site makes its living out of brokerage.
Here are the reasons why e merchants consider cashback:
- A cashback customer is supposed to purchase +20 to 30% than an average customer. This is the reason why brands are eager to get this target.
- Also they are 40% more to come back on the emerchant site after having made its first purchase.
- Some emerchants generate 30 to 40% of their business out of either cashback brokers, or other kind of referrals.
Hence, cashback could be affiliate to multiple brand’s loyalty reward program. Indeed, thanks to a large portfolio of companies and industries using the program, you can have very interesting customer behaviour data.
On a CRM point of view, it is very interesting idea to check how one customer behave depending of the purchase he's aiming to make. Also, it creates an environment where you'll be able to leverage the other e merchants potential to get more customers.
Have you ever tried a cashback site?