Different companies follow several marketing strategies to attract their customers. Implementation of marketing strategies helps every company to get more turnover. Offering Cashback and discounts are some attractive ways to catch more traffic and enhance revenues.
What do people understand by Cashback?
The prime aim of applying Cashback is to attract more customers. At present, many reputed brands, service providers, and even finance companies offer Cashback to their customers. Different online stores have also opted for Cashback in recent times to popularize their shopping centers.
The truth behind offering Cashback is to boost sales. This offer also helps to increase the brand awareness among the customers.
Different types of Cashbacks
You may have experienced cashback offers while you go shopping or opt for any service. However, people are not aware of different types of Cashbacks, and all can check below.
Credit card-related cashback
This type of Cashback is mainly offered by banks. Many banks follow this strategy for the credit card owners. Credit card owners can enjoy this benefit while they do any shopping using their credit cards. These cashbacks can help you to pay overdue bills and meet other expenses.
Debit card-related Cashback
Similar to credit card cashback, debit card holders can also opt for Cashback using the debit cards while they do shopping.
Cashback while online shopping
At present, the online store has become extremely popular, and many online store companies offer Cashback to their customers. You can have these Cashback in coupons, coins, etc.
Reward is one of the most popular forms of cashbacks. These cashbacks are not in the form of coins. Here, points are allotted to the customers depending on the shopping done. These points can be exchanged later, and customers can win some good prizes. However, customers need to make large transactions to get good rewards.
Cashback relating to motor vehicle
This Cashback is offered to the customers who purchase motorcycles. Motorcycle companies normally offer this Cashback in the form of various items like different electronic gadgets, etc.
Cashback relating to collaboration
This Cashback is an agreement between the parties.
This is also another popular type of Cashback. This Cashback is offered by property developers to their consumers when they buy any property like houses, shops, plots, apartments, etc. Consumers can enjoy the Cashback in the forms like TVs, air conditioners, cars, etc.
Cashback in domination
Parties enter into a mutual agreement and enjoy the Cashback. However, in this dominant cash back, only one party enjoys the benefits, whereas the other doesn’t enjoy much benefit.
Apart from those mentioned above, accommodation cashback and Cashback Lose-lose are the other two popular types of Cashbacks.
Advantages and disadvantages of Cashback
Cashback is no doubt one of the fastest ways to drive sales. These are some of the most effective ways to attract new customers. Many reputed companies offer Cashback once they need to clear old stocks. Many companies use Cashback for customer retention management. However, Cashback also comes with some limitations. Sometimes, customers may think that companies offer Cashback to sell the product with low quality.
What is the discount?
“Discount” is the deduction of a certain percent of the amount from the normal price. Different companies offer discounts at a certain percentage on the product’s cost for a certain period. Companies normally offer discounts on their product during any festive season or occasion.
Advantages of offering discounts
Customers always love to get Cashback as well as discounts. While you do shopping, you will be glad to notice that you can purchase your favorite brand at a discounted price. The probable advantages of offering a discount are mentioned below.
Attract more customers
The prime aim of offering discounts is to attract more customers. Every company always wants to have new customers besides their existing parties. Offering discounts can attract new customers, and it will help boost the revenue of an organization.
More traffic to online selling stores
At present, online shopping stores are getting extremely popular, and many online stores offer big discounts to attract more customers. It will help every online portal to get traffic from many customers. Offering discounts is also a good way for brand promotion.
Every company wants to boost their sales, and hence, they need to implement appropriate plans and offer to pay more focus on their sales. Once a company offers a discounted price on a product, it will help to attract more customers and automatically enhance the turnover.
More engagement of existing customers
Offering discounts is not just attracting new customers and enhance sales. It is also an effective policy of every company for more engagement of existing customers.
More brand popularity
Enhancing brand reputation also largely depends on offering discounts. Many companies offer lucrative discounts whenever they launch new products in the market. Once customers notice new brands with discounts, they immediately opt to purchase these products.
Related: Flat vs Upto Discount Explained
Cashback Vs Discount- check the differences
Discounts and cashback both are beneficial for customers. Both offers are helpful in attracting more customers. However, there are some basic differences between the cashback and discount offers.
Customers enjoy the benefit of cash after their purchase, and hence it can be less satisfactory than discounts. Customers can enjoy the benefits of discounts during their purchase.
Customers can use the Cashback on several products, whereas discounts are applied only to the products that they will purchase.
It has been noticed that long-term customers can enjoy the benefits of Cashback. At the same time, discounts are enjoyed by both existing and flying customers.
Cashback is extremely helpful in retaining existing customers. One-time customers mainly prefer discount offers.
Discounts are seasonal and it is mainly offered during various occasions. Cashback is not seasonal. Many companies offer Cashback in terms of rewards every time you purchase. So, it is a long-term process.
Cashback is great for enhancing future sales, whereas discount offers mainly focus on immediate sales.
Well, both cashback and discount impact the sales of a company and customers get immense benefits from both. Both marketing strategies are effective in boosting the turnover of the companies.