How to use Cashback to Improve Customer Loyalty in WooCommerce Stores?
This article is for all E-commerce websites using WooCommerce as their backend and for those who are seeking ways to improve their customers' loyalty. First, let’s talk about what’s Cashback and why e-commerces should use it to improve their customers’ loyalty.
WooCommerce is an open-source e-commerce plugin for WordPress. It is designed for small to large-sized online merchants using WordPress. Launched on September 27, 2011, the plugin quickly became popular for its simplicity to install and customize and free base product. (Wikipedia)
What’s Cashback?
In the stores which have the cashback program, when you buy something, you get a percentage of the amount it cost paid back to you. This means cashback is a way of getting money off things you buy as a reward or incentive.
The goal of this is to improve the repeat customer rate and loyalty of customers. As you know, repeat customers are easier to sell to so cashback is a great and easy way to increase this rate and loyalty.
According to RjMetrics, repeat customers spend 300 percent more money.
Cashback = Total Amount (TM) * Cashback Percentage
For example, if your cashback percentage is 3% and you spend $300, you will get Cashback Reward = 300* 0.03 = $9.
Why Should We Have That?
Cashbacks are an amazing way for shoppers to make money they wouldn’t otherwise make and they are a great opportunity for businesses to increase sales and grow. Also, since they require consumers to provide data to process the claim, cashback can provide businesses with valuable consumer-related insights.
When your customers have even a few dollars in their wallets in your store, it’s 5x more likely they will buy from you again and not your competitors.
How Can We Have That?
With Formaloo Customer Analytics, you can determine your customers’ health score. Based on analyzing the patterns of every one of your customers, Formaloo Customer Analytics provides you with the exact right amount of cash-back which you should provide for each customer to grow customer loyalty & engagement, without losing your profits.
In summary, with Formaloo Customer Analytics, your customers will order more, more frequently.
Integrating Formaloo CDP with WooCommerce
Integrating Formaloo CDP with your WooCommerce online store is easy. We’ve developed a one-click WordPress plugin that makes it possible to import your previous orders and customers to Formaloo CDP in just one click and provide you with insightful actions.
Step 1: Activating Formaloo’s WooCommerce plugin
- Go to your WordPress administration (usually located under /wp-admin)
- Go to plugins and click “Add New”. Search for Formaloo.
- Install the plugin and click “Activate”.
- Enter your API token and API secret using the instructions explained (you can find them within the Settings page of the plugin).
- Click “Connect”.
Formaloo will start tracking data from your WooCommerce store from now on. We’ll sync your customers and orders list hourly with your Formaloo CDP account which you can see in your Formaloo CDP dashboard here.
Step 2: Make use of the Cashback Feature
- Go to the “Cashback for WooCommerce” page of the plugin.
- Choose Your Cashback Range using two input fields with the logic below:
I want to give my customers between $x to $y cashback at most. - Click “Calculate”.
From now, we’ll calculate each customer’s proper amount of cashback within the range you’ve chosen based on their activity and will show them real-time on their profile page on the Formaloo CDP dashboard.
Go to the Formaloo CDP dashboard and choose “Customers”; You can now see all the customers imported from the plugin and click on each of them to see the insights created by Formaloo (including the amount of cashback calculated).
Summary
From young children to mature adults, cashback promotions are understood by and accessible to all types of audiences, which allows them to be applied to almost all markets.
The days of blind and one-shoe-fit-all marketing campaigns are over. Blind discount codes will destroy your profit margin and decrease your customers’ loyalty.
Using the cashback feature, you can reduce your marketing and customer retention expenses by thousands of dollars per month with high-speed and high income.
Thank you for reading this story, I would love to hear your feedback and your experiences regarding it. If you want to contact me or ask me any questions, here is my LinkedIn, I would be happy to hear from you.
