Cash Back Rewards Calculator

Cash back creates store credit that customers can only spend with your brand, guaranteeing return visits. Unlike discounts that reduce margins immediately, store credit is redeemed at full price, protecting your profitability while building customer loyalty and increasing lifetime value by 17%.

Most successful stores offer between 5-10% cash back. Lower percentages (3-5%) work well for high-margin products, while competitive categories may benefit from 8-12%. The calculator helps you model different scenarios to find the sweet spot that balances customer incentive with profitability.

Data from 200+ Shopify stores shows that 68% of customers redeem store credit within 30 days, with the average redemption happening in 21 days. This creates a predictable cycle of repeat purchases, unlike traditional loyalty programs where points often go unredeemed or expire unused.

Absolutely! If you're planning to launch a cash back rewards program, use industry benchmarks for average order value and projected monthly orders. The calculator helps you forecast your rewards investment and budget accordingly before implementing the program with Redeemly.

No. Store credit is redeemed at full retail price, maintaining your margins. Traditional discounts immediately reduce revenue by 10-30%, while cash back costs the same but drives guaranteed repeat purchases with 17% higher repeat purchase rates. The net effect is higher customer lifetime value and protected margins on redemption orders.

Redeemly is a native Shopify app that integrates seamlessly with your store's checkout, customer accounts, and order system. Setup takes less than 5 minutes with no coding required. Over 7,000 merchants use our apps, with 200+ stores actively using Redeemly to drive repeat purchases.