Just like the growth of ecommerce companies in India was fuelled by discounts, mobile wallet companies such as Paytm and MobiKwik grew on the back of cashbacks — sometimes as high as 100% of the transaction amount.
“Loyalty points are very different from cashbacks. As only a small part of the total accumulated points get used, the user comes back repeatedly… But, it would take some time for the user to get accustomed to the service,” said Sanchit Vir Gogia, Chief Analyst and CEO at Greyhound Research.
Supercash, according to Gogia, also reduces the customer acquisition cost. In the case of cashbacks, the probability of a customer dropping out after using a cashback is higher.
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Sanchit Vir Gogia: Sanchit is the Chief Futurist, Founder & CEO of Greyhound Knowledge Group, a Global Strategy & Transformation Research, Advisory & Consulting Group. He also serves as Chief Analyst & CEO of Greyhound Research, a Global, Award-Winning, Independent Technology & Innovation Research, Advisory & Consulting firm. To read more about him, click here.
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