If you follow the news, you know that France is experiencing a a surge in inflation. Indeed, by following the consumer price index in France, we notice that the inflation rate was maintained at around 1% for many years before experiencing a real rise from the end of 2021 to reach 6% today.
Many French people are looking for solutions to try to limit this price increase as much as possible, which can be problematic for a certain part of the population.
In this context, we notice that cashback and coupon codes are becoming more and more popular.
Cashback and coupon codes to make real savings on your purchases
The principle of discount codes is old and known to all. In physical commerce, the promo code takes the form of a small ticket which, once given at the cash register, offers the right to make lower the price of the product concerned.
Obviously, the discount code has followed the emergence of internet commerce. The ticket has been transformed into a code to be indicated during the ordering process. The form differs, but the objective remains the same: save money before purchasing a product or service.
Cashback, on the other hand, is a little more recent and has exploded thanks to the internet. Its principle: instead of offering discounts on the purchase price before the order, we offer the possibility to the Internet user to take advantage of a deferred reimbursement of part of the order.
Lcashback requires the use of an intermediary : a cashback site. Internet users who want to save money on their purchases register for free and have access to a directory of partner merchants. Through the partner site, it will be possible toincrease its kitty and recover it directly on its bank accounts. Many cashback platforms exist such as Poulpeo or igraal
Here are the results of a study by the Syndicat National du Marketing à la Performance (SNMP)’s 2019 cashback study:
- +147% of cashback sites’ turnover in 3 years;
- 63% of cashback site members discover new e-merchants through this business lever;
- 75% of members believe that cashback is a sign of trust;
- 55% of the members see cashback as a decisive criterion for making a purchase;
- Cashback awareness is up 5 points since 2016 to a 60% awareness rate.
The popularity is such that cashback is making inroads into physical commerce. Some banks offer their customers the possibility of partial reimbursement using their bank card in partner stores. Cashback sites are also offering gift cards that can be used in retail stores.
The impact of cashback and coupon codes on purchasing power
With inflation skyrocketing and bankbooks struggling to keep up, it has become essential to take an interest in your purchasing power.
In this context, the possibilities of making short-term short-term savings through cashback and discount codes become real lifelines that can be used by all shoppers, online or in physical stores. Unlike the investments mentioned above, the impact on the portfolio and savings can be seen instantly. This tends to boosting people’s purchasing power who use them. Both for everyday references and to treat yourself (it is possible to get discount coupons and use cashback for more expensive references such as smartphones or household appliances).
Hence the increase in cashback and promotional codes.
What are the benefits of cashback and promo codes for merchants?
Offering customers a discount on the purchase price or a deferred refund (in the form of a commission to be paid to the partner site) is not done without compromising the margin.
However, rather than looking at the possible loss of sales, one should rather Instead of looking at the possible loss of business, we should be interested in the gains generated by this type of business leverage and see this system as a way to expand our customer base.
Indeed, as a company, if you register on reputable sites, you will have access to many prospects who might not normally be interested in your brand. As we mentioned earlier, more than 1 out of 2 buyers consider cashback as a decisive criterion for purchasing. Thus, by opting for this type of solution, you will gain visibility and notoriety.
However, be careful to choose the right partners and calculate your return on investment accurately in order not to sell at a loss. Do not try to inflate the prices of your items to compensate for the loss of vouchers and cashback. This can backfire.
Need help setting up an affiliate campaign using cashback and/or discount codes? You want to boost your visibility as well as your sales while enjoying an excellent ROI? Casaneo’ s experts are at your disposal to accompany and advise you.