Cashback
Also known as: money back
The term cashback can literally be translated as "money back." A cashback promotion is a marketing tool frequently used by manufacturers to introduce a new offer. It tempts the interested party to try a product at a reduced amount, for example.
A portion of the purchase price is refunded to the consumer's bank account if the original proof of purchase (often combined with the cut-out bar code from the packaging to prevent fraud) is sent to the manufacturer.
Of course it is also possible to highlight an existing offer with a cashback promotion but often one of the neuromarketing objectives is chosen. This can include a discount on a product, a 1+1 offer or issuing vouchers to purchase other products at a reduced price.
Objective cashback action
A cashback promotion provides several objectives. The main objective relates to increasing conversion. A cashback promotion can result in higher sales. If the offer in question is liked (sometimes literally), repeat purchases are more likely.
In addition, the purchase of the offer in question may result in a purchase of a related offer in which case there is cross selling. Finally, a cashback promotion is an excellent tool for providing customer data.
Indeed, participants in this promotion must provide information when applying for the cashback and, in doing so, must also give permission to the manufacturer to contact them. In this way, the manufacturer forms a very useful customer base without violating privacy laws.
