Did you know that, besides some 7,000 US merchant relationships, Loyalize also has partnerships with more than 1,000 European merchants? We have both those that service the entire European Union, as well as country-specific merchants (including those located in Germany, France, Italy, Spain, the Netherlands, and many more) and close to 500 merchants that are based in the United Kingdom.

Across all of these European geographies, Loyalize powers merchant-funded cashback rewards, through our state-of-the-art cashback API solution which we’re proud to showcase at Europe’s Money20/20, “the place where money does business”.

Look us up in the conference’s networking app, and let’s do business while we’re all in Amsterdam!

The post Let’s Do Business in Europe! Meet Loyalize in Amsterdam appeared first on Loyalize®.

On January 23, Day 1 of this 6,000+ attendee event will start with a workshop by our very own, Geno Prussakov (the CEO and Co-founder of Loyalize). Bright and early, Geno will kick off the show with an in-depth two-hour seminar entitled “Advertiser’s Crash Course in Affiliate Marketing”.

Besides Loyalize, Geno also happens to be the Founder of AM Days and one of the most respected voices in the affiliate marketing industry.

On Day 2 of the event, Geno will make another presentation: this time, on a stage erected right in the middle of the show’s Expo Hall! We are incredibly proud to have been selected as a solution worth demoing to the world. Speaking back-to-back with CapitalOne Shopping, Geno will present Loyalize, its value proposition, and its uniqueness.

We’d love to meet you at this event, and being all about perks and rewards, we can’t help but throw in a motivator to set up a meeting with our CEO… Out of the first five people to book a meeting with him at Affiliate Summit West 2023, we’ll pick one to win a free Networking Pass (normally priced at $599.00) to the show. Just contact us and let’s set your meeting up, entering you into the raffle.

See you in Las Vegas later this month!!

The post Meet Loyalize at AM Days & Affiliate Summit West 2023 appeared first on Loyalize®.

A satisfied customer is willing to pay a greater price. They would rather spend a higher price to ensure that they get the same level of quality and service. But, regardless of pricing or accessibility, how do well-known brands gain customer loyalty and keep them coming back?

To help answer that question, we’ll list some of the best member rewards that businesses can offer their customers. You can gain ideas for your own loyalty scheme by looking at these suggestions.

Discounts

You can get customers’ email addresses or phone numbers to send them the latest discount offers that may catch their eye. Offering discounts is one of the most popular customer loyalty programs out there.

This loyalty program will not only help you keep the old customers but also attract new consumers. This is an excellent approach to offering new product lines to your regular consumers and making it more convenient for them to try them out. Discounts are a good approach to convince people who haven’t bought from you in a while to reconsider visiting your shop.

Benefits of Offering Discounts

Here are some benefits of offering discount rewards to members:

1.  Brings in New Customers

Discounts, as previously said, are incredibly appealing to customers and can bring in both new and returning customers. Discounting goods and services, especially those that are in high demand, is a good approach to attract attention. Word-of-mouth traffic can enormously boost returns on advertising, especially in the era of social media. Increasing traffic online or in-store is likely to result in increased sales for your company.

2. Creates a Good Rep

There are a variety of situations in which a company can offer a discount to improve its image. Customized discounts (such as seasonal or location-based discounts) can tremendously help a company’s reputation. For example, if a company offers discounts to seniors, military veterans, or cancer survivors, it exhibits sympathy and identifies itself with specific groups.

Points-Based Rewards

The most popular sort of rewards system is a point-based system. Customers can earn points that can be used for free purchases, rebates, and other benefits.

Purchases aren’t the only way for customers to earn points. They can also accumulate points for posting on social media, writing reviews, celebrating their birthday with your establishment, or participating in gamification.

Benefits of Point-Based Rewards

Points-based rewards are great for members because they are:

1. Easy to Maintain

First of all, it’s low-maintenance. It is run on a digital platform; everything is in one place, it’s easy on your end to manage the system.

2. Flexible

Second, it’s flexible. A business’s needs, goals, and strategies can change from time to time. Points-based systems give you the freedom to reward your customers as you see fit and encourage them to engage more than ever with your organization.

3. Helpful for Understanding Shopping Behavior

Because it’s a digital system and every point reward is carefully recorded, you can learn a lot about your customers, their historical patterns, and their shopping habits. It’s easily quantifiable. That will give you a clear picture of what customers want and by providing that, you will be able to drive their loyalty more than ever before.

Cashback

You can link your customers with retailers offering cashback so they can earn money back on their purchases. Simply put, instead of receiving a percentage discount on products and services, your users would get cashback as a fraction of their purchase from a number of businesses. They will pay the total amount as usual when they shop and receive a fraction of the money back.

Benefits of Offering Cashback

1. It’s Convenient & Clear

One of the downsides to using points-based reward systems is the lack of clarity. Both customers and employees sometimes complain that it’s somewhat complicated to figure out how the system works and how to earn rewards. 

Also, when earning points, there is a possibility that the effort may not match the reward. For example, it may take you two months to reach 1000 points, only to find that those points are worth a $50 coupon to a retailer. Two months for a $50 reward is obviously not worth the effort.

2. It Shows Customers You Care

You’ll rarely come across a customer who can claim that the pandemic didn’t upset their lives, especially in financial terms. That’s why state and non-state institutions have been coming up with different packages and solutions to help people recover from these two years.

You can play a vital role here by offering cashback yourself and helping customers gain access to many retailers that offer cashback. It may not turn their life around, but it will show customers that you want to help them as much as you can. That is a sure-fire, honest way to boost customer loyalty.

In these tough times, nothing can help people like cutting down their expenses and opening up an additional revenue stream/saving channel.

3. It’s Cold, Hard Cash

If you go on Google and type “rewards to offer members” or “loyalty programs”, you will come across a list of +20 alternatives. There’s no doubt that all of them have merit, some tangible and some intangible. You could pick a customer of the month, form a loyalty club, and put them as a leading contender for a grand prize.

Again, all are great. But, the reality is that in today’s world, nothing catches people’s eyes more than cold, hard cash. By offering a cashback program, businesses can help members earn money back on every small or big purchase, giving them extra money to use on a rainy day. That will undoubtedly register shopping at that place/website as a positive experience in people’s minds, which will significantly improve their loyalty to the brand.

Optimal Solution

To offer cashback to your customers, you need to connect them with other businesses that provide such benefits. You will need to develop or acquire an API solution to do this. How? You have two options: 

1. Some businesses may opt for an in-house solution to save money. However, the reality is that they need to spend a significant portion of their budget on developing the infrastructure, training employees, and optimizing the solution. Plus, they have to spend a lot of time finding and connecting with other businesses that provide cashback offers. 
2. The alternative is to use a third-party “cashback engine”, an accredited API provider like Loyalize, to gain access to thousands of retailers. Here, you can integrate Loyalize’s API engine into your own user interface to show your customers a long list of other businesses and their respective cashback offers in a variety of categories. 

In addition, the cashback API provider can continuously monitor, attribute and report on customer shopping behavior. Plus, companies no longer need to spend resources on building connections with retailers.

DO Get in Touch!

In an era where businesses are under immense pressure from other players in their industries, maximizing customer loyalty is vital to their survival and growth. That’s why we’ve seen such a spike in the quantity and types of customer loyalty programs.

Whether you’re offering discounts, cashback, or setting up a point-based system to keep your members coming back, you need to first know what they need and come up with a program that will hit the right spot. But, as you already know, people respond to few things as eagerly as to straight-up cash.  

If you need help setting up your own cashback-powered loyalty program, we at Loyalize provide one of the best cashback API engines to connect you to more than 6,500 U.S. retailers. Just contact us for an exploratory meeting and we’ll show you what we’ve got.

The post Top Member Rewards for Businesses to Offer and an API Engine appeared first on Loyalize®.

Using rewards to increase loyalty and motivation will be of great benefit to your business; the right approach is the key to success. There are many options, from traditional methods like discounts to new and more effective ways like API-based rewarding solutions.

But what are these API solutions, and how do they work? What are their differences? Read on as we answer these questions below.

Coupons & Cashback: Traditional REWARDS

The ultimate goal for all businesses is to convert leads into real, loyal customers. That’s why they use a wide range of tools and strategies to encourage people to buy more. Both coupons and cashback are influential in driving up customer engagement and sales because they are popular among customers. 

In the world of marketing, there is also another bigger, and more challenging issue: nurturing your existing customers and turning them into loyal customers who keep coming back to you. This part requires a deeper understanding of marketing approaches and human psychology.

One effective way to achieve the goal of customer loyalty is to use rewards. Give your customers something that will encourage them to buy from you again. You may be wondering, how? Giving your clients an opportunity to purchase from other stores with discounts and cashback are influential in driving up customer engagement and sales, as they are popular among customers. Let’s review how they work right now.

Coupons/Discounts

More than 85 percent of shoppers in the U.S reported that they regularly use coupons and discounts to make purchases. Coupons increase sales in the short run. They are extensively integrated into sales operations and marketing initiatives to achieve this.

Businesses hope to create a strong brand through these activities and offers, which will result in more sales, higher margins, and greater consumer loyalty. However, the majority of them repeat the same mistake, which harms their brand value.

The mistake is relying too much on coupons and traditional discount offers. It’s nice to offer discounts here and there, but doing so for too long can devalue your brand and product. That’s why they may not be the best long-term approach for some businesses.

Of course, It is critical to remember that coupons are not the only viable method. 

Cashback

Cashback offers have been on the rise in the last several years, to the point that 73% of U.S customers prefer cashback to any other type of reward.

A cashback option gives the customer a percentage of the cost of a product back. The simplicity of cashback offers is their main selling point. They work exactly as expected. You can increase your revenue in the long run by strategically using cashback offers from relevant companies and integrating them into your own platform.

Now, let’s review the benefits of both options.

2. Benefits of Cashback & Coupons

There’s no doubt that cashback offers and coupons provide significant benefits for customers and businesses. 

Coupons and cashback give customers an incentive to buy the products or services you direct your users to rather than those of another vendor and build up an extra revenue stream for your business.

Here, they know you and the competition and just need to take action. This is where coupons and cashback come into play. 

Cashback: A Win-Win-Win Strategy!

As the world evolves, all aspects of marketing techniques, including approaches to increasing customer loyalty, are undergoing evolutionary improvements. Coupons are an old-fashioned way to encourage your customers to stay loyal to your business. There is, however, another more effective and modern strategy: cashback.

It works interestingly and simply. You direct your customers to other businesses that offer cashback through your own platform. 

This connection is beneficial for your company, as you increase your customers’ loyalty and give you an additional source of income, for the other companies that get new customers, and for the customer who receives cashback: a triple win strategy!

Cashback Helps Preserve the Brand Image

Imagine being able to direct your customer to thousands of other businesses in a variety of different categories via a sophisticated “Cashback Engine.” In this way, your customer will enjoy the vast network of your partner businesses. 

You will be remembered as a versatile and influential company that can meet your customer’s needs in your industry and other areas.

Furthermore, your company may drive repeat business by making the accumulated cashback usable only for purchases of your products or services.

3. Cashback & Coupon; API-Based Solutions

Of course, as a company, you want to have all kinds of modern tools in your toolbox. So it never hurts to connect your people with retailers that offer coupons and cashback. Here are some ways to incorporate coupon and cashback programs as an employee benefit. 

But first, let’s get familiar with the API!

What’s API?

API, short for Application Programming Interface, allows companies to open up the functions and data of their applications to external third-party groups. This includes developers, business partners, and internal departments within their markets. API allows product/service providers to communicate with each other through a documented intermediary. This opens up opportunities from which all parties can benefit.

API usage has grown so much over the past decade that today’s most popular web applications would not work without it.

Coupon API Solutions

You can build an API-based platform to connect your clients with thousands of retailers that offer coupons. The platform will allow your employees to view, sort, and select coupon offers that match their interests.

You can also use a deal aggregator where you submit the offers and coupons, and it takes care of the rest. There’s no need to spend a long time finding the perfect deal for your customers, fixing broken links, and resolving errors. The aggregator takes care of everything before providing the offers to the end-user.

Cashback API Solutions

With cashback, things are a bit different. Here you need to develop your own solution that can work with various retailers. This, of course, requires a level of time, money, and expertise that can be beyond your capabilities. Instead, you can opt for a reliable third-party API solution provider that can take care of everything for you. 

With an in-house solution, it will undoubtedly take a long time to fix bugs and establish connections with retailers and integrate them into your affiliate network. That’s why it’s much better to use reliable API providers like Loyalize, which can give you access to over 6,500 retail stores in the US, provide multiple cashback arrangements and streamline the payment process. 

How Loyalize Can Help

Typically, it is a challenging task for a company to implement cashback platforms from scratch, spending most of the time (more than 95%) on the “engine” or “functionality”.

At Loyalize, we give our clients the ability to focus on their own user interface and user experience and save a lot of time required to implement a “cashback engine”. 

We help you empower your platform with the “Cashback Engine” through an API. Our API allows you to access the actual cashback data, including initiating purchases, statuses of those purchases, see the cashback amount, etc., with simple requests. The specific functions and data access via API are done according to certain conventions described in our API documentation.

Get in Touch

All you need is a reliable cashback-API-engine provider that will give you what you need to set your platform up and connect your users with thousands of stores. 

You do not have to look far because that’s what we do at Loyalize. All you need to do is contact us!

The post Discount or Coupon API versus Cashback API appeared first on Loyalize®.

Promoting job satisfaction among your employees by offering them desirable perks and benefits is a great way to encourage them to stay with you. Bonuses and rewards help keep your employees loyal to you because a happy workforce is more innovative and effective.

Therefore, companies are usually on the lookout for perks to encourage positive behaviors in the workplace. Perks and benefits come in many forms, and their effectiveness depends mainly on the industry, the company, its size, and its current position. In this article, we have listed five of them.

What Are Work Perks?

Perks are non-monetary, non-material rewards given to employees who receive these perks in addition to their salaries and wages. These intangible rewards are known by many different names and are used to attract and induce loyalty.

Employee satisfaction is inextricably linked to job satisfaction. Ignoring employee satisfaction will affect employee motivation, commitment, effectiveness, and productivity.

Employers need to fully recognize the hard work of their employees. And that is not easy to achieve. Sometimes comments like “well done” and “thank you” go unsaid. Such remarks can do a lot to boost self-confidence and self-esteem.

This recognition fosters an emotional bond between managers, team members, and the rest of the workforce, and keeps everyone involved, engaged, and inspired. Remember, however, that recognition should be balanced and given only in exceptional circumstances.

Best Ideas for Offering Work Perks

Employers can use a wide range of tools and strategies to win the loyalty of their employees. Here are five key benefits that can help a friendly team thrive.

1. Paid Leave

It’s easy for business owners to think of employees as just another part of the system. But in reality, people are not machines because they cannot work for extended periods without a break.

You are probably already familiar with the term “burnout.” It’s when people put their focus, time, and energy into a single task for too long until they have no energy left to keep going.

It can take quite a while for many people to recover from this and move on. Burnout can be the end of the line for those who lose interest in work and seek a new field of endeavor. And that’s the last thing business owners want because they need employees who are willing to keep working hard.

That’s why companies need to give their employees paid time off to care for their kids or family members. This can be either parental leave, paid vacation, or even time off to take care of their health. Employees can’t maintain their productivity and efficiency if they are tired, sick, or debilitated.

2. Insurance Plans

If you want dedicated & loyal employees, you must support them in every way. Employees who are concerned about their medical care cannot perform reasonably. A worried employee is an underperforming employee.

Insurance policies are a terrific way to show that you care about your employees. Here, you will pay a set amount to cover an employee’s medical expenses. These policies cover accidental injuries, disability, death, and amputation. Dental exams, biometric screenings, and other sorts of medical care fall under such policies.

If an employee becomes disabled or loses the ability to work, the company will pay the person’s salary. Depending on the employee’s needs and desires, a company may offer them short-term or long-term disability insurance. A short-term policy covers an employee for up to six months, while long-term insurance covers a worker’s entire career.

3. Childcare

Contrary to what some companies think, employees are not robots. They have families and personal lives to manage. That’s why you need to offer effective childcare options so they can focus on their work to the best of their ability.

Employers can offer a wide range of services and options to help employees care for their children. One way is to share the cost of child care through subsidies. Offering subsidies is an efficient and relatively affordable way to reduce child care costs.

Companies can pay the subsidies directly to employees with children and let them, as parents, decide how to spend the money. They can also contribute to the cost of a specific care center or even hire childcare specialists on behalf of parents.

Of course, companies that have adequate resources and infrastructure can provide on-site childcare facilities where parents can bring their loved ones to work and focus entirely on the job, knowing their children are safe and healthy.

If a company does not have the money for subsidies or the space for childcare facilities, they can at least offer flexible schedules for parents to take care of their children whenever they want. In other words, they can plan their work around their children rather than the other way around.

4. Stock Options

This is a business that grants its employees the option to purchase shares of the company’s stock at a predetermined price that is usually lower than the market price. This gives employees a sense of ownership in something they helped create. It makes them feel like they are a part of the organization.

By giving employees a share of the company, their mentality changes from “just working for money” to “really caring about the company’s success.” They actually become owners of the company and treat it like one of the founders. They feel more connected to the cause and the other people in the company.

They will be more careful and innovative with the organization’s resources because they do not see the company as a third-party employer. In terms of human resource management, offering shares will improve employee retention because they will be more committed to its future, and will not immediately leave for another, better offer.

5. Cashback

Now let’s move on to another powerful employee perk: cashback. Who doesn’t need to save money on purchases from thousands of stores? Discounts are a great way to show your appreciation to your employees by allowing them to save money on various services and goods.

However, cashback works a little differently. The concept is similar to a discount, but employees receive cash when purchasing products/services from affiliated businesses instead of paying less money.

They pay the total price and receive cash to spend or save. It’s a straightforward, high-value perk that boosts your employees’ morale and attracts new ones.

So instead of receiving partial discounts on goods and services, workers receive cashback equal to a portion of their purchases at certain stores. In this way, they can shop as before, take their family and friends out to dinner, and receive free cash in the process.

For this reason, cashback perks are popular with employees in a variety of industries.

Loyalize offers a “cashback engine” that allows companies to connect their employees through their own platform with a variety of other businesses — nearly 6,500 retailers in the U.S. We provide an API that allows your platform to access actual cashback data, such as initiating purchases, tracking the status of those purchases, viewing the cashback amount, and so on.

Bottom Line

These five solutions are reliable strategies for improving employee satisfaction and productivity, but there’s nothing more motivating than cold, hard cash.

But you do not need to pay for it out of your own pocket. Just find a reliable provider that will give you what you need to connect your employees with thousands of other companies that offer cashback, track them, and provide you with all the necessary information from the first click, to the purchase.

That’s exactly what we do at Loyalize; do not hesitate to get in touch with us today!

The post Work Perks: Importance, Ideas, and Implementation Solutions appeared first on Loyalize®.

Investing in your employees’ overall job satisfaction by giving them desirable perks and benefits is a great strategy to encourage them to stay with you. Employee perks and rewards help employees remain loyal to you because a happy workforce is more innovative and effective — and less likely to apply to your competitors.

What you provide beyond the monthly salary can help you recruit more effectively. The right mix of extra benefits can make the difference between attracting the very best candidates to your team or losing them to companies with more appealing offers.

If you’re wondering what these employee perks are, keep reading to find five practical ways that can make your people super happy and ease your retention concerns.

1. Recognition

It’s more than obvious to point out the benefits of acknowledging a job well done, but sometimes comments like “good job” and “thank you” go unsaid. These two statements can go a long way in boosting confidence and self-esteem. Recognition fosters an emotional bond between team members, managers, and the rest of the team, keeping everyone involved, engaged, and inspired.

However, keep in mind that recognition should be balanced and given only in special circumstances. Praising someone too often or for small accomplishments can create division and develop a callous attitude toward other group members.

2. Great Work Culture

A pleasant workplace is one of the most effective ways to keep existing employees happy and attract new ones. When people are unsatisfied at work, they will eventually look for a new job. And, thanks to services like GlassDoor, if you have a lousy boss, everyone will know. Try to build a positive business culture if your company hasn’t already. Define and advocate principles that are vital to your business to attract like-minded talents

Even so, a great culture is more than just a set of values and goal statements. Strive to work in a supportive environment where members are friendly and collaborative. Every employee dreams of feeling happy to go to work each day.

In other words, “Do what you love, and you’ll never work a day in your life.”

3. Benefits vs Employee Perks

After salary, employee perks are the most critical factor for your staff. They want to be sure that they will not have to pay too much during their time at the hospital, save for the golden days, and take time off without too much hassle.

In most occupations, though, health insurance, 401(k) retirement plans, and stock options may constitute the standard benefits. Your business should focus on offering the best policies and plans available, but it’s the extras that will set you apart from the competition.

The best employee perks are the ones your staff wants the most and what you can afford. Here are some of them:

• Stock options: Giving your staff a share of the profits is an excellent strategy for retaining them and contributing to the country’s success.
• Fund employee training: Encouraging employees to learn new skills by covering a part of the tuition is a win-win scenario for both sides.
• Health & Wellness: Health equals productivity. Consider covering gym or health club memberships or purchasing fitness equipment for your employees. In addition to salary, essential perks for job applicants include health insurance for employees and their families.
• Retirement plans: A tax-advantaged 401(k) plan is one of the most common and popular employee perks globally and can effectively motivate existing employees and attract top talents. If you offer to match people’s contributions up to a certain amount, it will be a huge benefit for employees and will motivate them to stay loyal to your team all the way.

Your business must have the financial means and capacity to provide additional employee perks. Try to come up with several effective perks to show prospective hires that your organization values their contribution.

4. Thinking Out of the Box

In addition to providing employee wage-based benefits, there are so many ways to boost your people’s morale that will cost you little to nothing. Here are some of them:

• Paid time off: There are few employee perks sweeter than Paid time off for employees. It’s a great approach to avoid employee stress during vacation, sickness, or bereavement. Two weeks is an ordinary paid time off for new talents, but not many candidates can pass up on three weeks or more.
• Flexible work schedules: Employees dream of having the chance to choose their own timetable. This normally involves a shorter workweek (e.g., four 8-hour workdays) or flextime, where members work from 10 a.m. to 7 p.m. instead of 8 a.m. to 5 p.m. These days, workers are pushing for schedules to split their workday into non-consecutive periods — for instance, 8 a.m. to 12 p.m and 4 p.m. to 7 p.m. — to handle their work and social activities.
• Discounts: People love receiving exclusive offers and discounts. In fact, discounts on major purchases like vehicles, houses, and phones are super popular employee perks in today’s market. Even if these purchases are out of your price range, think about what you can afford. Even a discount at the local cafe might be a popular perk.
• Paid parental leave: People want to be sure that while caring for a newborn, they are still getting paid and can pursue their career ambitions. This is one of the widely popular employee perks. So, it’s no surprise that companies with paid parental leave are among the top choices for talented hires who plan on having kids in the future.

5. Employee Perks

Last but not least, let’s turn to such employee perks as cashback and rewards. Who doesn’t enjoy saving money on purchases? Discounts are a terrific way to show your appreciation to your employees by giving them the opportunity to save money on a variety of goods and services.

Cashback, however, works a little differently. The concept is similar to a discount, except that instead of paying less money, employees receive cash when they purchase goods from affiliated businesses.
They pay the total price but receive cash that they can save or spend. Cashback, which is basically an additional source of income, is a hassle-free, high-value perk that can significantly boost your people’s morale and attract new hires.

So, instead of getting a percentage discount on goods and services, workers receive cashback as a proportion of their purchases with certain stores. In other words, they can continue their routine shopping as before and take their family and friends out for dinner, and receive free cash.

Bottom Line

In many ways, the current market is complex and stressful, but at times like these, we get creative and figure out how to get by with less. Perhaps we focus so much on employee output that we forget there’s a human side to the story.

Yes, pay is essential, but it’s even more necessary to go to work satisfied every day, meet your coworkers, and find ways to improve someone else’s life. That’s what you can do by offering these employee perks.

While you should pursue all five strategies, there’s nothing more motivating than offering people cold, hard cash. Even better, you do not have to pay for it out of your pocket. All you need is a reliable API provider to set you up, link you to thousands of stores, and have them pay your people cash every time they make a purchase.

You don’t need to look very hard because that’s what we do at Loyalize. All you need to do is contact us now and let us show you how we can take your employee perks to a whole new level.

The post Employee Perks or Motivating Beyond Salary and Benefits appeared first on Loyalize®.

But in recent years, almost all businesses have become aware of this fact and have tried different methods to increase their customer retention rate. That’s how loyalty programs have emerged and made cashback rewards a hot topic.

Of course, you may be wondering how cashback can help you boost your customers’ loyalty. That’s exactly what we’re going to find out in this article. But first, let’s see what cashback is and how it can benefit your business.

What Is Cashback?

Before turning to the benefits of cashback, let’s first explain it in general terms. Cashback is the reward you give every time customers purchase and spend money. Most typically, you reward them by re-paying to them a percentage of the money they spend.

The exact rate varies with each business, and some may even provide additional offers. Plus, you may set specific days and times of day to offer extra cashback, meaning that your customers will get a higher percentage of cashback if they make a purchase during those periods. This is not just for people who visit brick-and-mortar stores. This may easily apply to online purchases as well. You may see real-life examples of both in this earlier blog post of ours.

Many businesses sign up for APIs like Loyalize offers to can cover thousands of online stores. The API will handle the rest and even provide reports on every customer’s shopping activity.

Three Benefits of Cashback

Now you know what cashback is and how customers can get it. But, you still don’t know why you should offer cashback and how it can help you build a loyal customer base. Here’s why.

1. Cashback Is Cheaper Than OTHER Rewards

Businesses can use a wide range of programs and plans to offer rewards. For them, this is a critical factor because they know that an increase of 5% in customer retention increases profits by 25% to 95%.

A typical loyalty program will see your business give something away when customers spend a specific amount of money or even make a certain number of visits. What is that something? Often, it’s a non-monetary reward like a free meal, free haircut, or a free oil change. It ultimately depends on your industry.

But, offering these non-monetary rewards can usually cost you more than a straight cashback reward. For example, if you offer 5% cashback on every purchase, which is very generous, it would mean 25 cents on a $5 purchase. Also, if on top of that, you offer cashback on purchases placed elsewhere (i.e. with other/non-competing merchants), it becomes even more interesting to the user.

2. Cashback Can Replace Discounts

Offering discounts is undoubtedly one of the most effective strategies to bring in new customers and keep them long-term. But, the problem with discounts is that they eat away at your profit margin to the point that you’re no longer making any real money.

With cashback, you no longer need to give discounts. Instead of 30% discounts on your products and services, you can offer 15% cashback.

Discounts only make customers lose a little less money, while cashback makes them gain money on their purchases. Clients will pay you in full, and in return, you will send monthly cashback (or semi-monthly in the case of Loyalize). That will significantly increase your cash flow and create incentives for customers to keep coming back.

3. Cashback Can Create Loyalty

We human beings inherently love to receive things, and we also love to give something in return. This act of reciprocity is a foundation of modern marketing strategies.

That’s why people never forget about a business that rewards them with cash for a purchase or even a visit to its store at certain times of the year. Anticipating a monetary reward will keep them coming back and spending even more to get a bigger prize.

But beyond that, why can cashback foster loyalty more than other forms of incentives? When you hear loyalty programs, you may immediately think of point systems, such as frequent flyer miles in airlines or special clubs. The issue with such programs is that you don’t know when you will receive the reward.

On the other hand, money is instant gratification; it’s easy, practical, and everyone loves it. That is a powerful attraction that most shoppers find hard to resist.

How Cashback REWARDS Foster Loyalty?

Not everyone responds to rewards in the same way. Additionally, people’s reaction largely depends on various factors such as context, emotions, habit, and many others. A shopping experience can influence people’s emotions in a way that either keeps them loyal or loses them forever.

It’s a well-known fact that customers feel uncomfortable when spending money on goods and services. In many cases, people don’t want to part ways with their hard-earned money based on a matter of impulse.

Defining Value

Gaining value is the ultimate reason that drives people to buy. But, today, the value goes beyond receiving a product or service in exchange for your money. With the occurrence of several financial crises and the pandemic over the last decade, businesses have started to define value from a different perspective.

For instance, the current pandemic crisis and its impact on people’s livelihood have significantly shifted people’s needs so much that the real value for businesses is now helping customers protect their money.

It’s almost certain that people will feel stressed about financial matters long after the pandemic is over. That’s why taking away their financial stress, offering more convenience, and giving them some of their money back can be a real value. In these times, nothing more than cashback can create a satisfying end to the shopping experience.

Plus, cashback is one of the few rewards that don’t require shoppers to jump through hoops to get it.

Cashback REWARDS: A Significant Value

With customers concerned about budgeting, cold hard cash is the most helpful vehicle to create delightful shopping experiences. Businesses today are leveraging neobanks, financial institutions, and APIs to incorporate cashback rewards into the shopping experience to stay at the top of wallets.

The impact of monetary incentives such as cashback on increasing sales through rewards (36%) is considerably bigger than offering discounts (28%). Even better, you don’t have to do much yourself. All you need to do is sign up with a reliable API like Loyalize and attract loyal customers by offering rewards in thousands of online stores.

Bottom Line

Delayed gratification, complex loyalty programs, and score systems are some factors that have given cashback such a strong boost. People more than ever gravitate towards businesses that help with their budgets. So, there’s no doubt about the effectiveness of cashback. But what if you, as a business, expanded beyond cashback on your own products or services, and fueled your loyalty initiatives with an ability to accumulate cashback on myriads of other purchases they routinely make? Undoubtedly, this would make your customers even happier.

You need a reliable provider that (after a smooth setup) can provide accurate, insightful user reports, and extend your cashback piece to thousands of stores.

To our knowledge, there is no other API-driven solution that can make the above possible but our own.

You really don’t have to look very far because Loyalize meets all of the above criteria. So, contact us now to learn more about our technology and how we can be the cashback solution for your business.

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