Etini
Valued Contributor
In these days where cashbacks are used as incentives to draw customers to a business, some businesses have been able to create what I call an unfair advantage because they have cashback programs. So how can a small business stay competitive by implementing cashbacks into their sales offers.
The first thing to consider when implementing cashbacks is the structure of the cashback program. The percentage of the should be low enough not to affect your profitability in a big way. Normally, a cashback percentage of between 1% to 3% of all purchases should be enough to attract a customer and keep the business profitable.
Another way to stimulate sales is to tier your cashback program. Offer higher percentages up to 5% for people that are buying in bulk. It might look huge but it is spread. You would turnover quickly with that.
With these two tips, you can stimulate sales with the use of cashbacks.
The first thing to consider when implementing cashbacks is the structure of the cashback program. The percentage of the should be low enough not to affect your profitability in a big way. Normally, a cashback percentage of between 1% to 3% of all purchases should be enough to attract a customer and keep the business profitable.
Another way to stimulate sales is to tier your cashback program. Offer higher percentages up to 5% for people that are buying in bulk. It might look huge but it is spread. You would turnover quickly with that.
With these two tips, you can stimulate sales with the use of cashbacks.
