Cashback is: understanding and impact in marketing strategies
Basically, Cashback is one of the marketing strategies in the form of a percentage of refund percentage. This method is often used in several food outlets in Mall, in Marketplace, etc.
Before the attendance of the Fintech or Financial Technology application, the cashback is given with a voucher form, which in every purchase with a certain nominal will later get a refund with a predefined nominal, depending on the percentage of the cashback.
Well, in this article, we will discuss all things related to cashback and their impact on marketing strategies. Curious? Therefore, let’s read the article about this cashback until it’s finished.
As we discussed together above, that cashback is an offer where the buyers will be given the percentage of refunds, both in cash or virtual, or can also be in the form of a particular product, by fulfilling a purchase requirement that has been determined by the store or The Cashback organizers.
At present, in general cashback is no longer given with a form of cash refund that can be felt directly by the buyer, but the Cashback organizers usually will provide the cashback in the form of a deposit.
This way is done so that the buyer wants to repurchase by utilizing the deposit to the party that has provided cashback.
At present there are many Cashback variants, even many companies offer cashback in the form of goods that are useful for buyers.
There are a lot of types of cashback which is currently around us, and the most commonly used is the following type of cashback:
- Cashback credit card
Credit Card Cashback is one of the programs or strategies organized by certain banks that will provide benefits, in which the credit card issuer will be willing to give a return of a number of your money if you succeed in making a particular transaction or you managed to achieve a certain transaction value.
Apart from going to give a refund, this type of cashback will also usually provide discounts or discounts from the results you do. Of course in this case the nominal refund of the transaction depends on the policies that have been made by each bank. In addition, the number of percentages also varies.
The greater the transaction you make, the greater the value of refund that you can get. The accumulation of every credit card cashback allowance every month can even be used to pay monthly bills or spend on various other necessities.
In fact, some banks currently have issued a special cashback credit card, the money where the credit card will provide certain ANCA cashback, but still by fulfilling the various conditions that have been set.
If you are interested, you must be more observant in choosing a credit card that is capable of providing the largest cashback promo but with the conditions that do not burden you, and also pay attention to the various features they offer, such as cooperation with Merchants, and other facilities.
- Online cashback store
Online Cashback Store is one of the programs issued by an online shop or marketplace that will provide a refund if you succeed in purchasing goods in the marketplace or online store with a nominal transaction.
Usually, the cashback promo made by Marketplace or Online Shop is not a cash refund or virtual money, but they will provide a cashback that you can use later for the next purchase.
So, later you will get a percentage of a percentage in accordance with the Cashback value you have received, depending on the terms and requirements that have been organized by the online store or marketplace.
This method is proven to be very beneficial for the consumer or online store. In terms of consumers, they can save money more on the next purchase, while the online shop will certainly get loyal customers for the online store.
In this way, it can almost be sure of consumers to repurchase on the online shop, because they will get a discount from the next transaction.
- Cashback Property
Cashback Property is a program organized by a developer or property developer that will provide benefits, which they will provide a cashback if the consumer wants to make purchases of soldiers sold, such as houses, shop houses, apartments, etc.
Generally, the Property Developer will provide cashback in the form of complementary property properties, such as air conditioning, refrigerator, TV, etc. In fact, it is not uncommon for the Property Developer who is willing to provide cashback in the form of a motor or car if the price of the property is very expensive.
This promotion strategy has proven to be very effective to captivate consumers, because consumers consumers have made savings at once after they buy property that the price is quite expensive and they get a cashback value that is also expensive.
- Cashback motor vehicle
Almost the same as Cashback Property, Cashback motorized vehicles are a program organized by the finance company or which is often called leasing, by providing benefits where the leasing company will provide cashback if consumers managed to buy vehicles they sell.
In general, this leasing company will provide cashback in the form of an item, such as mobile phones, laptops, tablets, etc. In fact, there is also a leasing company that is willing to provide a cashback in the form of vehicles, such as purchasing cars getting a cashback motor.
This strategy is also considered to be very favored by consumers, because they will be happy if they get a certain promo they do.
Actually, there are still other types of cashback, such as cashback tour packages, cashback purchasing kitchen tools, cashback school tools, etc. Everything depends on the company, Merchant, or the Cashback organizer.
Advantages and Disadvantages of Cashback
Every marketing program or program has certainly has their own advantages and disadvantages, especially in terms of consumers. The following are various advantages and disadvantages of cashback.
1. excess cashback
Based on the full explanation above, the advantages of cashback are certainly able to give money back to the consumers, which can be felt and can also be considered a bonus of purchases they have done or the consumer can make savings on the next purchase.
2 Deficiency of Cashback
Basically, the lack of cashback felt by consumers is not a loss for the consumer. The lack of cashback in this case is more related to how the cashback can be obtained with the provisions and conditions of the organizers, including:
- Purchase requirements
In general, the cashback program will be accompanied by the conditions that must be met by the consumer, namely by spending a number of nominals that have been set to get cashback.
For example, there is a marketplace that offers a 10% cashback promo in a particular store on the purchase of goods with a nominal amount of at least 250 thousand rupiah. If the consumers only make a purchase of 240 thousand rupiah, then of course they cannot get the cashback.
- Giving time
At present, it feels almost all the organizers no longer give cashback directly when the purchase is finished, but the buyers must wait a few days, a few weeks, even the next few months.
At present there are even some cashback organizers that utilize a contribution to consumers who are generally given with deadlines. If customers or consumers have paid off contributions, the consumer will lose the opportunity to get cashback.
In general, cashback has been determined by the company or merchant, the consumer does not have the right to determine the percentage of cashback they have obtained.
Based on the explanation above, we can draw conclusion that cashback is a form of supply that can be obtained by anyone, because the consumer will benefit when successfully fulfilling the requirements.
The strategy of giving cashback also provides many benefits to companies or online stores that organize cashback, because so, consumers will repurchase and produce loyal consumers, so companies can get a lot of profits or profits.
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