We work with three variables that each brand establishes based on its current average ticket, recurrence and the objective it wants to achieve with the program:
1. Cashback percentage: this is the percentage of cashback that is accumulated for each purchase made.
2. Reward threshold: this is the cashback threshold that must be accumulated for the user to receive it.
3. Maximum cashback per transaction: this is the maximum cashback that can be accumulated on a purchase. That is, the limit that can be accumulated on each of the purchases made.
To understand it, it is easier to see it with an example:
- Cashback percentage: 10%
- Reward threshold: 10€.
- Maximum cashback per transaction: £5
If a customer spends £50 on your brand, he will accumulate 10% - i.e. £5. He will not receive this cashback until he reaches the £10 threshold.
Therefore, he will have to spend at least another €50 to accumulate another €5. In this way, you will accumulate a total of €10, thus reaching the reward threshold.
At that point - and once the return period has passed - the customer will receive his €10 reward.