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Cashback and promo codes: the winning combo for your conversion rate


Do you know about cashback and promotional codes ? With cashback, the customer gets a post-purchase discount while the promo code comes before the end of the transaction.

Interesting fact: it is possible to to attract more and more customers to your site and boost the conversion rate.

Cashback: principle and advantages

Cashback is based on a partnership principle between an e-merchant and a site specialized in this sector.

How does cashback work?

For the customer, it will be enough to register on a cashback site to benefit from a directory of partner sites. To save money, the Internet user will have to search for the brands that interest him and the products he wants. If he finds what he is looking for, he clicks on the reference to be redirected to the partner site.

Once the purchase is made, a commission will be paid by the merchant to the cashback site and a part of this amount will be given back to the person who bought the product (it will be placed on his account created on the platform). Then, the client can ask for get your money back in the form of a bank transferby PayPal or, in some cases, gift certificates. He can also, if he wishes, give all or part of the amount to an association. It also aims toincrease the re-purchase rate.

Please note: refunds vary widely depending on the site and promotional offers. It can range from 0.5% to over 12%.


Why is the cashback concept interesting?

Cashback is based on a win-win principle.

Indeed, with each purchase of a product :

  • The cashback site recovers a more or less important commission;
  • The customer also benefits from a discount on the price;
  • The e-merchant benefits from a visibility boost and an increase in sales.

Obviously, you have understood that it is up to the e-merchant to finance this system. The commission will impact his profits with each purchase. However, this promotional and commercial partnership is an excellent way toto increase its notoriety as well as its sales volume and, therefore, its turnover.

In addition, studies show that Consumers are more likely to complete a purchase if they receive an attractive discount. This decreases your cart abandonment rate and increases your conversion rate.

Promocodes: principle and advantages

While cashback occurs after the purchase, coupon codes are coupons that must be registered at the time of the shopping cart.


How do the coupon codes work?

The principle of coupon codes is simple to understand. Indeed, here we are on a discount voucher in the form of a code to be filled in at a certain moment of the purchase process.

This code can be :

  • A percentage reduction;
  • A discount in euro ;
  • A free shipping offer;
  • An additional gift on the order.

Unlike cashback, which requires you to go through a partner site, you can share coupon codes with your users (prospects and old or new customers) by your own means.

Indeed, although there are a number of specialized coupon code sites, it is possible to submit your coupons in multiple ways :

  • Sending an email to your former customers;
  • Sending an email to people who put items in the shopping cart without finalizing the purchase process;
  • Share a promo code in your newsletter;
  • Offer the possibility for people referring acquaintances to obtain a promo code (and share it with their referrals);
  • Share a promo code on your social networks;
  • Coupons linked to a loyalty program;
  • Sending an SMS with a promo code;
  • Regular publication of new coupon codes on a dedicated page on your website;
  • Through influencers or bloggers.

To know: to maximize their performance, it is advisable to share coupon codes with a relatively close validity date. Indeed, by implying a notion of urgency, you encourage your users to perform the desired action as soon as possible.


Why are coupon codes interesting for e-tailers?

Just like cashback, coupon codes are an excellent way to boost your conversion rate. In fact, according to various studies on the subjectit turns out that coupon codes have a positive positive image among a large majority of Internet users (more than 90%). Moreover, 50% have already given up buying a product online if they did not find an associated promo code.

You understand the importance of coupon codes in e-commerce. The relative simplicity of finding this type of discount online can be a a real competitive advantage for you.

Much easier to set up than a cashback process, the promo code can greatly improve your conversion rate. improve your conversion rate.


How to use cashback and coupon codes together?

Did you know that promo codes and cashback are two two promotional techniques that can be used together.

Indeed, unless otherwise stated, a customer can benefit from a coupon code on the one hand and cashback on the other hand on the same product or service. The interest is toto encourage users to finalize their purchases as much as possible.

Because this type of practice is as effective in the prospecting phase as in the loyalty phase, you can, for example, exclusively target your new customers or people who have not purchased one of your products for a long time.

However, be careful to calculate your final margin and the profitability of the product(s) concerned. You can, for example, apply coupon codes and/or cashback on products to make your prospects want to know about you and then go through your site for all their future similar purchases.

Want to know more about the impact of coupon codes and cashback on your conversion rate? Contact us and let us help you set up this type of promotional campaign.


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