Planning to build your own affiliate business with cashback software?
You are not alone. The global cashback market size is $8 billion, with $200 billion worth of transactions processed every year, and it is growing.
Everyone wants to take a chunk out of it. You will find 100s of online platforms for cashback.
But what about in-store cashback?
There aren’t many options there. In this article, we are going to discuss the three type of in-store cashbacks that you can offer. Not just that, we’ll discuss how each works, what are the pros and cons and which would be the best choice for you.
So, let’s start!
Types of InStore Cashback Solutions #
➣ Receipt scanning #
How it works?
It is really simple: the customer makes a purchase at the store, scans the receipt, and earns a cashback. Irrespective of the merchant, the cashback software will provide cashback based on the items mentioned in the receipt.
So, it’s not a regular cashback model where the merchants pay you a commission, and you pay a part of it to the customer. Instead, you monetize the data that you have. Since, the customer is scanning the receipt, you will know which items are bought from which store during which time of the year. You can use this data and monetize it by selling it to other companies.
For example, if a customer bought Nike shoes a year ago and scanned the receipt to earn a cashback, you have the data that it’s been a year, and now the customer is going to need a new pair of shoes. What you can do is you can share this data with competitors, let’s say, Adidas or New Balance.
These companies can retarget their ads to these customers since you have all the info, including name, number, location, and more. And they will pay you for this highly personalized data, which can give them more conversions.
So, this model is really efficient for data collection and monetization, so what’s the catch here?
Let’s talk about the pros and cons of these cashback models.
Pros
- You will be sitting on a pile of data.
- You can monetize it and generate more revenue than the regular cashback model.
- Customers can earn cashback on any merchant, irrespective of your partnership with them.
Cons
- Chances of fake receipt creation since there is no verification from the store end
- You need capital first to invest and collect data.
- You can not start generating revenue instantly, unlike cashback apps, because you will need time and customers to collect data to monetize it.
- It might not be the best fit in regions like the EU and the US, where data collection laws are very strict.
- You have to implement technology like AI, ML, and computer vision to scan those receipts and put data in an organized manner.
Examples
1. Ibotta
Ibotta allows users to earn cashback by taking pictures of their receipts from grocery stores, retail stores, and other participating merchants. Users can browse offers in the app, purchase the items, and then scan their receipts to receive cashback. The cashback is credited to the user’s Ibotta account and can be withdrawn via PayPal, Venmo, or gift cards.
2. Fetch Rewards
Fetch Rewards users can scan their grocery receipts to earn points for every purchase. The app automatically finds and applies eligible offers from partnered brands. Points accumulate in the user’s account and can be redeemed for gift cards from a variety of retailers.
3. Receipt Hog
Receipt Hog rewards users for uploading receipts from any store. Users earn coins for each receipt they scan, which can be redeemed for cash through PayPal or Amazon gift cards. Additionally, users can participate in surveys and other activities to earn more rewards.
4. Shopkick
Shopkick users earn points (called “kicks”) by scanning receipts from purchases made at partnered stores. Users can browse offers in the app, make qualifying purchases, and scan the receipts to earn kicks. These points can be redeemed for gift cards to various retailers.
Is it the right time to develop receipt-scanning cashback software?
Well, there are many platforms already in this space, and with all the competition, it will be really tough to break the ground. Customers are used to using apps that already have a lot of credibility, and it is going to take you longer than expected to grab the market share. Also, the chances of fraud are very high since there is no data verification.
Unless you have a lot of capital in hand to market your app and time to spend on collecting the data, it’s not the best choice for developing receipt-scanning cashback software.
➣ CLO – Card linked offers #
How it works?
In CLO cashback apps, the customer earns money by spending money on a card. Customers will earn cashback at participating merchants. Customer links their Visa or MasterCard with your app, and card providers will share the transaction data with your app to provide cashback.
Here, the business model is like the regular cashback model. You earn a commission for bringing customers to the platform, and you pay a part of it to the customer over and above the card offers.
So, the customers can get benefits from both ends, the regular discount, cashback from your app, and rewards on card spend.
With such offers, brands get more exposure with their campaigns and get more conversions. By building a CLO platform, you are providing brands with a platform to share their campaigns with the masses.
A shopping center named Intu saw a 47% increase in average customer transactions because of card-linked offers.
Pros
- Easy to use, no extra step included to earn cashback
- Get offers from Visa and Mastercard, reducing your efforts to find partnerships
- Brands get a chance for moment marketing for quick conversions with offers and you can earn more commissions
Cons
- Dependency on intermediaries for cashback approval and disbursal
- You can only operate in regions allowing open banking, like EU and Europe
- High deposits and fees for maintenance charged by card providers(Sometimes exceeding $10,000 a month)
Is it the right time to develop CLO cashback software?
CLO is still a good choice for many affiliate businesses. It is noteworthy that such a system has a lot of dependencies. You will be dependent on networks for commission approval and payments. Also, the tech involved is advanced and takes time to implement. Its approval process can take time as well. So, if you are ready to pay high deposits and data handling fees to card providers, you can opt for CLO cashback solutions.
Examples
1. Dosh
Dosh users link their credit or debit cards to the app. When they make purchases at participating merchants, cashback is automatically credited to their Dosh account. The cashback can be transferred to a bank account, PayPal, or donated to charity.
2. Rakuten
Rakuten’s CLO program allows users to link their credit or debit cards to their Rakuten account. When users shop at participating brick-and-mortar stores and restaurants, they automatically earn cashback, which is added to their Rakuten account and paid out quarterly via check or PayPal.
3. Cardlytics
Cardlytics partners with banks to provide cashback offers directly through users’ banking apps. Users link their bank accounts or credit cards, and when they make purchases at participating merchants, cashback is automatically credited to their account. Users can view and activate offers through their bank’s app or website.
4. Rewards Network
Rewards Network provides a CLO platform primarily for dining rewards programs. Users link their credit or debit cards to their rewards account, and when they dine at participating restaurants, they automatically earn rewards points or cashback. These rewards can be redeemed for various benefits, including discounts on future meals.
Superback Online & Local Store Cashback System: QR code-based Tracking #
How it works?
Superback has changed the cashback experience with a solution that benefits both consumers and businesses. Our solution enables businesses to integrate cashback offers for both online and in-store purchases, enhancing customer engagement and increasing visibility.
We have designed the platform by keeping both the retailer and user convenience in mind. They can follow the simple process mentioned below to setup a store and offer cashback.
Retailer Onboarding with Superback
Retailers first register their business on the SuperBack platform. They create their cashback offers for in-store outlets. Once these offers are submitted, they are approved by the admin. After approval, these offers are available for users to discover.
Retailers have access to a vendor portal where they can manage their offers and track performance statistics. They also set the cashback amount for each outlet and offer, ensuring each offer is verified before becoming publicly available.
User Journey with Superback
Users begin by discovering nearby in-store cashback offers (on list as well as map view) through the app or website. Users also get an option to make online purchases on retailer online stores(If any), or they visit a participating retailer store, make their purchase, and show a QR code during billing.
The retailer then scans this QR code to verify the user and record the sale(If the retailer has multiple outlets, they can handle multiple offers using the Outlet app). Cashback is instantly calculated and credited to the user’s account. After the return period, this cashback is confirmed and ready to be withdrawn.
The Cashback Process with Superback
Users shop at partner stores and present their QR code at checkout. The retailer verifies the purchase by scanning the QR code and recording the transaction through the app. Cashback is immediately credited to the user’s account, though it is marked as pending until the return period is over. Once this period is over, the cashback is confirmed, and users can withdraw their confirmed cashback through the app with ease.
Unique Features of Superback
- Dynamic Cashback Management: Cashback starts as ‘pending’ to account for possible cancellations or returns. For services like dining, settings can be adjusted for immediate confirmation.
- Enhanced Brand Visibility: Stores display a Superback QR code at checkout, boosting branding and encouraging new user sign-ups directly at the point of sale.
- Local Store Integration: Local outlets and stores can seamlessly integrate their business with Superback. Using the seller panel, they can create and add their business with just a few clicks.
- Latest Offers with Superback: Stores can easily add promotional offers and discounts for each outlet and specific products they wish to highlight. This allows businesses to effectively target their marketing efforts and attract more customers by showcasing attractive deals on the Superback platform.
- Online stores: For online cashback, it works like every other cashback platform. The customer makes a purchase through a link and gets a cashback.
This combination of both online and offline cashback system provides retailers a convenience to see all their transactions in one platform.
What sets Superback apart from traditional receipt scanning and card-linked offers is its direct profitability for businesses and users. With Superback, every purchase verified by the retailer directly translates to cashback earnings. It ensures a mutually beneficial relationship between businesses and their customers.
Pros
- Easy and quick verification
- No chance of fraud
- Full customization based on your unique requirements
- Less capital requirement
- More sustainable
- This opportunity for the store to convert more customers offline and build loyalty.
Cons
- Manual entry of sale and verification by store
Is it the right time to develop QR-based cashback software?
We discussed three models and out of those, Superback’s dynamic software for both online and offline stores is the most reliable cashback software you can offer to your customers. With the flexibility to choose both data monetization and affiliate earning models, you can sustain for a longer period of time and stay ahead of your competition. It is also one of the affordable models since you have to pay a one-time setup fee, and you are good to go. No hidden fees, no monthly subscription charges.
Planning to build your own in-store cashback platform? #
Connect with our team at EnactOn. Our Superback cashback solutions can help you grow your business while being sustainable. With more than a decade of experience in building cashback solutions, our team of experts can consult and deliver solutions based on your custom requirements. We make sure that our cashback solutions meet the highest standard of technology and are perfectly aligned with the industry trends.
Contact our team today, and we’ll connect with you within 24 working hours.
