How Cashback Programs Affect Average Purchase Amount
Cashback programs significantly affect the average purchase amount, and often outperform traditional loyalty programs like points-based or tier-based systems. Here’s how they compare in terms of their impact on consumer spending behavior, especially focusing on average order value (AOV):
1. Immediate Value Drives Bigger Carts
Cashback programs provide real monetary returns, which creates a perceived discount:
- “I’m getting $10 back on this $100, so it’s like I’m only paying $90.”
- This justifies larger purchases or adding more items.
Effect: Increased average order value (AOV) due to the “return on spend” feeling.
2. Spend Thresholds Encourage Upsell
Many cashback platforms (like eeceee.com) offer:
- Bonus cashback at certain thresholds
- Or tiered percentage rates based on order size
This prompts users to:
- Spend a little more to hit a better cashback rate
- Bundle purchases for maximum return
Result: Average purchase size often increases by 12–25% depending on the category.
3. Psychological Anchoring
With cashback, buyers anchor value to savings rather than just price:
- Traditional loyalty points feel abstract.
- Cashback is concrete and bankable.
“Why not spend a little more now — I’ll get a bigger cashback.”
This boosts purchase confidence, leading to more expensive or additional items.
Comparison to Other Loyalty Programs
Program Type | Perceived Value | Redemption Delay | Impact on AOV |
Cashback | 💰 High | Low (Instant/Fast) | 🚀 High |
Points-Based Rewards | 🎯 Medium | High | 🟨 Medium |
Tiered Membership | 🏅 Medium/High | Medium/Long-Term | 🟧 Medium |
Discount Coupons | 🧾 High | Instant | ✅ High |
Punch Cards (e.g. Buy 9, get 10th free) | 👟 Low/Medium | Very Long-Term | 🔻 Low |
Why Cashback (especially Eeceee’s model) Performs Best:
- Tangible value: Real dollars back.
- Double cashback model: Encourages both larger and repeat purchases.
- Trustworthy: No mental math or complex reward systems.
Real-World Insight:
According to industry data:
- Cashback increases AOV by ~18% on average
- Points-based loyalty programs: ~7–10%
- Tiered programs (e.g., memberships): ~12–15%
Eeceee.com, with its double cashback, may increase AOV even more due to the dual-motivation (earn now + later).