The difference between cashbacks and discounts is in the ultimate goal of its use.
Traditional discount promotion allows increased sales in the short term. But if you strive to gain more sales in the long-term, you should choose another strategy.
Why are discounts worse than cashbacks?
First of all, remember that discounts hurt your brand value. By offering a discount, you devalue your brand and products so you should not stay focused on this promotional tool.
If you run the right, we mean cashback promotions or use your promotions strategically, they will increase your long-term profitability. Moreover, you will increase your sales and revenue without devaluing or hurting your brand.
So if you want to build long-term relationships with your customers you should choose a cashback campaign and prolong your client’s lifetime at your company.
