Cashback

What cashback is

Unlike a discount, cashback does not lower today's bill; it gives the customer a reason to come back and spend what they earned. The business chooses the percentage, and the balance grows with every purchase. On a Rewardly cashback card the amount comes from the bill, either from a connected till or from staff entering the purchase, and with Storyous or Papaya POS the credit can be spent right at the till.

How it works for a café, salon or restaurant

• A café gives a small percentage on every order, which adds up for regulars who come daily.
• A salon uses cashback on services, so a costly appointment returns a credit worth coming back for.
• A restaurant prefers it to stamps, because bills vary and cashback grows with what each table spends.

Because the credit is money, customers grasp its value at once, which a points total rarely manages.

What to watch

Cashback is paid out of margin, so set the percentage from your own margins, not from what competitors offer. Decide whether credit may cover a whole bill or only part of it, and show customers clearly what they have, since a balance nobody sees brings nobody back.