In the field of trade, much attention is paid not only to high-quality services, but to the psychology of the buyer, in order to convince him to make a purchase or order. This is much more complicated than offering a quality product, because in this case you need to know how to present this or that product in a light favorable for the client and thus make a sale at the expense of it.
In today's article, we will talk about one of the tools with the help of which the number of sales of goods and services is actively increasing. It's about the Cash Back option. What is it, where is it used, and who actively uses this tool in their business, read in this review.
What it is?
Let's start with the basics - a simple explanation of what a cashback service is.
This term occurs, as you might guess, from English. It is formed of two words: cash - "cash", "money" and back - "return". Literal translation allows us to call cashback (emphasis on the second syllable) the ability to return our money. To understand how the service works, we give a simple example.
You made a purchase, but the seller offers you an option such as a refund of your funds. If the cashback level is 5%, then for every 100 rubles spent, roughly speaking, they will return you 5. Thus, the final cost of services for you will be lower than if you would make a purchase without this option.
Motivation
Of course, Cash Back (which we are sure you understood or even knew before) is talking about stimulating the client's desire to place orders. It is supported by simple calculations and the benefits that this service promises.
After all, if you make a purchase with this option, you will be able to save a certain amount of money by returning them. The more you buy, the more they will return. This does not compare with the classic form of shopping, when no one returns anything. And this cannot but please the buyer.
Where is it used?
As we have already noted, Cash Back is used in various fields. It’s easy to guess what these business segments are: the money you spend can be returned in the trade. It is there that one store may be more attractive in the eyes of the client than another, just due to the connected cashback system.
Also often banks use weaknesses of the buyer. A number of major financial institutions have launched programs under which everyone who makes orders in certain shops can receive their legal Cash Back. Reviews note that such a scheme makes it possible to return part of the invested funds only after a person pays with a card of an institution.
And this, obviously, is a mutually beneficial, stable interaction scheme: a person making purchases on special conditions can return part of the money spent, and the bank thereby increases his client portfolio and earns on transactions made by them with the help of cards. The benefit of the store is that it receives sales.
Sberbank Program
For example, the “Thank you” promotion from Sberbank. The largest institution in our country provides (on an ongoing basis) a special offer to its customers. Those who make purchases in certain stores and services (which are partners of the bank) and pay with their card, receive a certain percentage of the amount invested back. Sberbank called its Cash Back program “Thank you”. As of this writing, several million people have already participated in the program.
All of them can make purchases in hundreds of stores, and in each case, a refund will be sent to the participant’s card in the form of bonuses. The bet here “floats” depending on where you make the purchase. In some affiliate stores, a refund amount of 50% of the amount of funds deposited is set.
In the future, having accumulated a certain amount, you can pay them. It is very easy to understand and profitable from a commercial point of view - to participate in such a program Cash Back. Sberbank, known for its reputation and backed by government bonds, acts as a guarantee that your money will really go to the card and will be available for use.
Alfa Bank Program
Not only Sberbank introduced such a promotion for its customers. He also runs the Cash Back program Alfa-Bank. The essence is similar to that described in relation to the largest bank above.
Paying with Alpha cards at gas stations and restaurants in Russia, you get a refund of 10 and 5 percent, respectively. Money becomes available after a certain period (once a month). Such an action provides not only the benefit of customers, but also an increase in demand for banking products, as well as the generation of sales for the service where the customer sells.
Tinkoff Bank Program
Tinkoff Bank does not lag behind the ones described above. In particular, a return program was launched here for those who make purchases of goods in certain categories (rate at 5%). In addition, the bank offers to make a payment of 10% of the amount of the deposit (if we are talking about a balance of up to 200 thousand rubles). However, at Tinkoff Bank, Cash Back is presented, rather, on a temporary basis, and similar stocks are held in certain periods.
Where is more profitable?
Of course, all banks have different return rates, the partners with whom financial institutions interact, and the conditions under which the payment of money is provided to the client, are also different. Although, in essence, it does not make sense to compare the mentioned Cash Back-card banks with each other. The comparison is impractical for the reason that the benefit of such a program may not be as obvious in the framework of the action as it is convenient to use because of the open account in a particular bank.
Shops and other services
Of course, not only banks can promote their products using such an option as a cashback service. There are independent resources that deal with the return of money to customers. One of the most famous can be called the site "Copycot". The scheme of his work is based on the same model that the banking institutions described above offer, only the form of calculating the buyer with the store does not matter: there is no need to receive a Cash Back-card. Comparison of work models shows that the Kopikot service uses affiliate links, according to which the buyer must place an order. In the end, this is the main condition for receiving a refund.
And of course, the scheme of returning a certain percentage of the goods (in the form of bonuses) is often used by individual retail chains. Those stores that offer you accumulative cards can also be said to work on a similar principle.
Reviews
Finally, in order to somehow note the work of the Cash Back services (what kind of scheme is this and how it works, we have already figured out), we will give some feedback that we managed to find in the process of writing this review. In them, those who are fortunate enough to accumulate a certain amount of bonuses are very happy to receive a nice gift in the form of a purchase made for the accumulated amount.
For example, if you made several orders that brought you N bonuses, and then acquired some valuable thing (as many participants of the same “Thank you” program from Sberbank do), you will be very pleased to realize that this purchase was made actually due to the funds returned to you. This is the whole charm of the cashback model.
The man who gives his money for some product does not expect to return it back, he mentally said goodbye to them. And if suddenly after some time he receives a certain percentage of the amount initially invested, he will be pleased to realize that for these funds he managed to get something.
You can experience the same feelings if you start participating in Cash Back programs on time. As you can see, there is nothing complicated in them: make purchases according to the stated conditions, and you will be lucky.
What is also wonderful in such programs is the absence of the need to make additional investments on the part of the participant. You just buy what you need, and the system pays you.