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Coupon vs cashback API

We inherently love to be praised. Scientific studies show that rewards are associated with higher employee motivation to complete a task. Therefore, many entrepreneurs and business owners use this simple fact to build or increase the loyalty of their customers or employees.

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.


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 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!

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