Question 1

What is the main advantage of using cashback offers over discounts?

Accepted Answer

The main advantage is improved profitability. With cashback, a percentage of customers won't redeem the offer, meaning your effective discount rate is much lower, which directly boosts your bottom line.

Question 2

How does cashback affect customer behavior?

Accepted Answer

Cashback encourages repeat purchases and increases customer lifetime value. It makes customers feel like they are earning something back, which builds a stronger, more loyal relationship with your brand compared to a one-time discount.

Question 3

Is it difficult to implement a cashback system for an e-commerce store?

Accepted Answer

It's simpler than you might think. Platforms like Fondue are designed to integrate with major e-commerce systems like Shopify, making it easy to replace traditional discount codes with cashback offers without a complex technical setup.