Strategise Your Campaign Setup 🎯
How to Fund Your Cashback Campaign 💸
Funding your cashback campaign is an investment in customer engagement and loyalty. Unlike traditional advertising, cashback campaigns directly reward customers who make a purchase, building a stronger relationship and increasing the likelihood of repeat business. Cashback can be tailored to suit your business goals, helping you reach high-intent customers and track campaign effectiveness.
Cashback campaigns are typically part of your marketing strategy, as they incentivise purchasing behaviour, rewarding actual customers who engage with your brand. This focus ensures that your marketing budget goes directly toward encouraging real transactions.
Examples of Cashback Funding Strategies:
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For Online Stores: E-commerce businesses may choose to offer a percentage of each sale as cashback, helping to increase sales and improve customer loyalty.
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For Food & Beverage: Restaurants or cafes can create time-specific cashback (e.g., lunch hours), encouraging visits during slower periods to increase revenue.
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For High-Ticket Retailers: Businesses with higher-value products may offer cashback on orders over a specific amount, helping to increase the average cart value.
If you use Hello Clever real-time payments, you don’t need to send us any funds in advance. Cashback rewards are extracted directly from customer payments, making it easier to manage and control your cashback campaign budget.
With a funded cashback campaign, you can drive tangible customer actions, creating a more meaningful engagement experience while controlling spending based on campaign specifics.
1. Have a Default "Always On" Campaign
An Always On campaign provides continuous incentives, helping build customer loyalty and ensuring your brand stays top-of-mind. This type of campaign acts as a baseline that runs in the background, creating a steady flow of engagement.
Example:
- Campaign: "Daily Cashback"
- Details: 5% cashback on all orders, always active.
- Goal: Keep customers engaged with a consistent, low-percentage cashback, encouraging frequent purchases.
Analysis: With a low-percentage cashback, the cost per transaction remains minimal, but the consistent reward builds long-term loyalty. This strategy is a cost-effective way to increase repeat business without major spending, as the regular cashback encourages more frequent purchases.
Your "Always On" campaign can be simple and low-percentage. Use this as a foundational incentive and layer additional campaigns for specific events or promotions on top.
2. Reward More for PayID to Reduce Card Fees
To encourage customers to use PayID instead of card payments, you can set up two separate campaigns, one offering a higher cashback rate for PayID transactions and another for card payments. This approach can help reduce card transaction fees, increasing cost efficiency for your business.
Example:
- Campaigns:
- PayID Bonus: 5% cashback for PayID transactions.
- Card Cashback: 3% cashback for card transactions.
- Goal: Incentivise customers to choose PayID over card payments, reducing your processing costs.
Analysis: By offering higher rewards for PayID, merchants can reduce costly card fees over time. Although there is a slight difference in cashback rewards, the lower transaction fees with PayID balance this out. Long-term, this approach can lower operating costs while maintaining a high level of customer satisfaction.
Set up two distinct campaigns to differentiate rewards for PayID and card payments effectively. This allows you to maintain control over transaction costs while still offering a reward for all payment types.
3. Use Tiers to Increase Cart Value
Tiered cashback encourages customers to spend more to receive a higher cashback percentage. This is an effective way to increase the average order size.
Example:
- Campaign: "Big Spender Bonus"
- Details:
- 5% cashback for orders over $75
- 12% cashback for orders over $150
- Goal: Motivate customers to increase their purchase amounts to reach higher cashback rewards.
Analysis: Offering higher cashback for larger cart values encourages customers to spend more on each transaction, increasing revenue per purchase. Although higher-value rewards are given, they only apply when customers meet specific spending thresholds, helping to balance reward spending with revenue gains.
4. Set Up Limits to Control Budget
Setting a cap on cashback helps you control costs while still offering incentives. You can set limits per transaction or per user to avoid excessive cashback payouts.
Example:
- Campaign: "Big Cashback Days"
- Details: 10% cashback on all orders with a $20 maximum cashback per transaction.
- Goal: Attract high engagement without exceeding your cashback budget.
Analysis: Limits prevent excessive spending while still making the cashback offer appealing. By capping the cashback amount, merchants ensure that the overall campaign remains within budget. This strategy supports predictable spending with high customer engagement and manageable costs.
5. Weekend or Time-Specific Cashback Campaigns
Creating time-bound offers like weekend or lunch/dinner cashback can drive sales during slow periods or specific times of day.
Example 1:
- Campaign: "Weekend Delight"
- Details: 8% cashback on all orders placed from Friday evening to Sunday night.
- Goal: Boost sales during weekends when customer engagement may be higher.
Example 2:
- Campaign: "Lunch Break Bonus"
- Details: 5% cashback on all orders placed between 12 PM and 2 PM daily.
- Goal: Encourage lunchtime sales by offering cashback during common break hours, ideal for restaurants or cafes.
Analysis: Time-specific campaigns encourage spending during targeted hours without requiring an all-day cashback incentive. This limits reward payouts to specific times while helping merchants fill off-peak periods. Long-term, this strategy increases revenue predictability and makes optimal use of daily customer flow.
Time-specific cashback campaigns can create a sense of urgency, encouraging customers to make purchases during targeted periods.
6. Seasonal or Holiday Cashback
Offer higher cashback during holidays or seasonal events to attract more customers. Seasonal campaigns can align with consumer purchasing patterns and increase sales.
Example:
- Campaign: "Holiday Special Cashback"
- Details: 12% cashback on all purchases throughout December.
- Goal: Take advantage of holiday shopping trends and increase customer spending during peak periods.
Analysis: While the cashback percentage is higher, seasonal campaigns are time-limited and often coincide with naturally increased spending patterns. This means the additional cashback doesn’t require a year-round commitment but leverages peak sales periods. The added boost during these times can significantly impact overall revenue, providing a positive ROI.
By implementing these strategies, you can create more effective cashback campaigns that align with your business goals and maximise customer engagement.