Cashback — is known to be one of the most efficient and popular advertising mechanisms which brings benefits for both users and enterprises. The article tells about peculiar features and cost of cashback app development.

How does it work

Cashback — is the means of purchases stimulation and customers’ loyalty rewarding system suggesting a potential customer an opportunity of getting back a certain amount of money they spent while purchasing goods instead of offering the momentous discount. “Cash back” is an English term, which literally means – return of the funds. The system works according to the next algorithm:

1. The cashback service is integrated in the Store’s Partner’s Program.
2. Then, a cashback system focuses on attracting the potential customers thus making them to make an order right here and right now.
3. On the completion of such a deal, a store provides a reward for the customer via cashback system that shares its reward with the buyer.

Peculiar features of cashback services development

The scheme is potentially quite simple with the exception of one thing: the store needs to be assured that the cashback in particular plays the key role in customer-attraction game not the advertising campaign as an example. For this reason, while making the e- shopping, the cashback servers require their users to get connected to their websites using only their referral links. The link guarantees the creation of the cashback identifier that links the user’s account on the cashback server with the customer on the website of the store.

Failure of following such referral link, will mean the lack of the opportunity for the client to get the cashback unless the online store and the cashback service allow to link users’ accounts on their platforms to activate the algorithm automatically; that, in its turn, will lead to the extraction of a certain percentage out of all deals performed by this particular user in the favor of the cashback service. What is more, apart from linking the accounts, it is also possible to connect the credit card to the existing account. Frankly speaking, in both of the cases, the stores will share their profit with the cashback service only for the period of first few months motivating this by the fact that there is no guarantee that future purchases of the client will be made under the influence of the cashback service rather than the store itself.

This is the main feature to be taken into the account during the development of a cashback service application. However, it is not the only one. There are some crucial points to be kept in mind if you wish to have your app working properly and become in demand.

1. Assistance from the store side is required

To get the cashback mechanism function properly, it is necessary to establish the partner’s relationships with the store. It is important that the store should be obliged to provide the opportunity of tracing the attracted clients and their purchases on their platform (time, quantity and the price included) along with the protocol of data and funds transfer to the cashback app platform. The process is expensive and time-consuming. That is why marketplaces usually create APIs anyone can use to connect this functionality to their service.

Therefore, during the development of an app it is necassaty to look for those stores which possess such APIs for their further integration with one’s platform. If you think that it is easier to connect your service to the favorite shop, - just forget that.

2. The app should have its unique features

On the Internet, you can easily find dozens and even hundreds of the websites and applications offering the same services as yours. To make your app stand out from the crowd you have to work hard to add some unique valuable features.

Talking about the cashback service app, those feature can be:

• As we all know, today various platforms give the chances of getting the spent money back both for online and offline purchase. This option is normally realized via credit card connection, QR-code or barcode generation.
• Broader store listing. This is a unique valuable offer of the majority of former cashback services. Those services spent years to get their databases. You can do that as well. Just keep trying. The LetyShops success can be a great example of this approach.
• Peculiar niche/sub-niche orientation. Instead of fighting for the leading majority of shops to be included in your partner’s list, choose to pay attention to one particular group of goods. This can be children’s clothes aged under 7, video games, tourism, goods for pets, etc.

3. Automatic status tracking is needed

On the completion of a deal performed using a cashback link, a user has to wait to receive part of the money spent. First, the store is to confirm the cashback rights on purchase, stating the customer has done all the steps correctly. Then, some of the time is required to wait until the marketplace realizes the transfer of funds to the cashback service, as the money are credited on the internal balance of the user’s account on the cashback platform first. Then, a user can make the transfer to his bank card/account, which, as a rule, happens once per months/quarter.

During the development of your own app, it is vital for you to realize the functionality of your app that will trace all the operations and display the status of the cashback on the user’s interface. The studies show that this is the key of users’ attraction, especially if the push-notifications are available notifying any status changes.

4. Creation of the Partner’s Program

Rakuten, one of the most popular cashback services, is known to reward its clients on the attraction of new users to the platform. Thus, per each new user who will spend more than 25$ via Rakuten service, the up-liner will receive 25$ (plus 10$ will be credited to the referral). Moreover, the website can offer the Influencer Program awarding additional bonuses such as private parties invitations (travelling and accommodation included) and tips on how to increase your income.

If you think about creation of such functions in your app, the first thing to do is to activate the protection. The protective system must prevent from creation of multiple users registration. This is the so-called scammer protection. The optimal solution is OTP verification. Plus, it is still possible to make the IP checks and SMS-verification controls.

5. Getting positive feedback about your App

Unfortunately, there are a lot of scams nowadays in this sphere collecting money from cashback services without paying out to their users. Some of them pay only partially, others are known to steal confidential data, redirecting to some other store, scammer website (pretending to generate an error) or simply infect the user's device with malicious software.

These are the reasons why users beware of the new cashback platforms. That is why it is very important to provide the functionality for your app, which will prove your trustworthiness. The proofs to be implemented:

• Social acknowledgement. Create a dialogue window for your app and ask to rate it on the App Store or Google Play, give a few answering options of the type: “I like”, “Ask me to rate it later”, “Report a problem”. This dialogue window can appear on the exit tab or some other place.
• Usage of the Blockchain Technology. The development of the application is possible on the developed Blockchain basis (e.g. Ethereum or Tether) and smart-contracts with open source code to speak about your honesty. Many startups use this scheme nowadays in various spheres of business.
• Payout proofs. It is highly recommended to add the section, which the users can use to share their experiences, and information about their successful operations realized in frames of the cashback app. Participation should be voluntary and encouraged by an increased percentage of cashback or other bonuses.

The main and auxiliary functions of the cashback service App

While working on the development of an app, you should remember to realize the three user panels: for customers, for store representatives, and for the admins. If you think about the creation of MVP, the customers will need the fully-functionality for the registration, store-search and cash out options. The store, in their turn, will require to have cashback listing adding option for their platform, as well as analytical and marketing tools. The admin will need the application control tools.

If you are in the process of developing a fully functional application, the list of functions will be as follows:

Cashback service app development cost

To launch the cashback service app is possible be means of SaaS or resorting to custom development. If you choose to use the first option, you will have a boilerplate solution that will be difficult to stand out from hundreds of other competitors. So it's worth working on the creation of your SaaS app just for proof of concept or if you're targeting an empty niche. In addition, if you made up your mind to choose using SaaS, you will need to pay a fixed amount every month and / or give a percentage of income, which is unprofitable in the medium and long term.

Custom app development requires a start-up capital and time. But this is the only approach that allows you to create a unique design tailored to a particularly chosen niche. Unlike SaaS, where you’re obliged to pay for a bundle of features (even if you don't need some of them), the custom development presupposes your decision on which features to be implemented in your application.

The cost of the creation of an application from the scratch mainly depends on two factors: the complexity and location of the development company. The complexity of a project means a certain number of functions and the depth of their elaboration. All of us can assume that the more complex the application is - the more expensive will be its cost. Location is important because the hourly rate for developers can vary widely from country to country: the average hourly rate in the US is $ 95, Western Europe is $ 67, and Eastern Europe is $ 32.  This is the estimated cost of developing a cashback application, depending on its complexity and the location of a development company.

Cashback service app development cost

To launch the cashback service app is possible be means of SaaS or resorting to custom development. If you choose to use the first option, you will have a boilerplate solution that will be difficult to stand out from hundreds of other competitors. So it's worth working on the creation of your SaaS app just for proof of concept or if you're targeting an empty niche. In addition, if you made up your mind to choose using SaaS, you will need to pay a fixed amount every month and / or give a percentage of income, which is unprofitable in the medium and long term.

Custom cashback app development requires a start-up capital and time. But this is the only approach that allows you to create a unique design tailored to a particularly chosen niche. Unlike SaaS, where you’re obliged to pay for a bundle of features (even if you don't need some of them), the custom development presupposes your decision on which features to be implemented in your application.

The cost of creation of an application from the scratch mainly depends on two factors: the complexity and location of the developer company. The complexity of a project means a certain number of functions and the depth of their elaboration. All of us can assume that the more complex the application is - the more expensive will be its cost. Location is important because the hourly rate for developers can vary widely from country to country: the average hourly rate in the US is $ 95, Western Europe is $ 67, and Eastern Europe is $ 32.

Technological chart for developing a cashback application

Features and Costs of Own Cashback App Development key takeaways:

#1. How does it work
#2. Peculiar features of cashback services development
#3. 1. Assistance from the store side is required
#4. 2. The app should have its unique features
#5. 3. Automatic status tracking is needed
#6. 4. Creation of the Partner’s Program
#7. 5. Getting positive feedback about your App
#8. The main and auxiliary functions of the cashback service App
#9. Cashback service app development cost
#10. Cashback service app development cost
#11. Technological chart for developing a cashback application