In Voucherify, you can use a loyalty program campaign to build a cashback program. In a typical cashback program, we need to define the logic between money spent and % of the money that will be given back to the customer, e.g., 1% cashback, 3% cashback, 10% cashback, etc.
So let's keep the above logic in mind and focus in this article on how to build a 1% cashback program.
While creating earning rules, it is up to you for which actions you want to reward your customers and how many points they will obtain. In our case, we are going to reward our customers for every dollar spent with one loyalty point.
In the rewards catalog you can define rewards that the customers can get in exchange of their points. In our case, we will use the pay with points reward type to allow conversion points into money and define conversion rate as one loyalty point will be equal to one cent:
Please keep in mind that in our case the loyalty points balance should be divided by one hundred to get the cashback balance. For example, if a customer has 150 points it means that the customer has $1.50 cashback, 500 points = $5 etc. Based on that you can make that additional calculation to display to the customer their cashback balance instead of loyalty points balance.
Having in mind the rule that was set (1 loyalty point = $0.01), you might wish to:
- Modify your earning rules depending on the percentage of cashback you want your customers to receive:
- 1% cashback will be equal to $1 = 1 loyalty point
- 3% cashback will be equal to $1 = 3 loyalty points
- 10% cashback will be equal to $1 = 10 loyalty points
Based on that, you may, for example, make some offers to give higher cashback in specific periods (e.g., 2% cashback in December, etc.) or promote some products to provide higher cashback (e.g., 5% cashback for purchasing Product A, etc.).
- 1 loyalty point = $0.01 - the customer will be able to use any amount of points and get cashback starting from one cent,
- 10 loyalty points = $0.10 - the customer will be able to use the minimum of 10 points and its multiples (20, 30, 40, etc.) and get cashback starting from 10 cents,
- 100 loyalty points = $1 - the customer will be able to use the minimum of 100 points and its multiples (200, 300, 400, etc.) and get cashback starting from $1.
Based on that, you can define the minimum points balance and points ranges that can be exchanged into money.
In addition, if you decide to define loyalty tiers inside of your loyalty program e.g., Bronze, Silver, Gold, you can:
- Override earning rules for each tier individually (earning rules mapping). Having in mind the earning rule we have created earlier, you can reward your customers from Silver and Gold tiers with higher dollar spent to point acquired ratio, e.g., Silver tier customers will receive 2 loyalty points for each dollar spent, and Gold customers will receive 3 loyalty points for each dollar spent.
- Override conversion rate of the pay with points reward for each tier individually (rewards mapping). This way you can compensate your Silver and Gold customers with better conversion rate, for example, Silver customers will get $0.02 for each loyalty point and Gold customers will get $0.03 for each loyalty point.
- If you only have one pay with points reward type and the customer wants to use all the gathered points, in the request you do not have to send any details regarding points, only customer and order’s details
- If the customer wishes a specific amount of points to be used eg. 500 points for $5 cashback, it is mandatory to pass this information in the API call request
- If you have more than one pay with points reward type, it is mandatory to pass information in the API call request with the reward id that you want to be used. Both of the above mentioned scenarios are still valid in this case - you can either use the entire point balance or a specific amount