Cashback Strategy Calculator
Optimize your cashback percentage based on profit margins, transaction volume, and customer acquisition costs. Make data-driven decisions to maximize profitability and customer loyalty.
Your average cost to acquire a new customer through ads, marketing, etc.
Cashback Strategy
Neutral Impact
Adjust the parameters to see the impact of your cashback strategy on profitability and customer acquisition.
Profit Margin Analysis
Your 35% profit margin allows for a maximum sustainable cashback rate of approximately 24.5% while maintaining profitability.
Customer Acquisition Efficiency
Cashback CAC of Ksh 0 vs Traditional CAC of Ksh 300. ✅ More cost-effective than traditional marketing!
Volume Impact
With 20% uplift, you'll process 100 additional transactions monthly. This represents Ksh 0 in additional revenue.
Customer Pays
Customer makes a purchase at your store using M-PESA
Instant Cashback
Customer receives instant cashback to their M-PESA wallet
You Benefit
Increased sales, customer loyalty, and valuable transaction data
Ready to Implement Your Cashback Strategy?
Join thousands of merchants already earning more with Faraja Cashback
Profit Margin Alignment
Keep cashback rate below 70% of your profit margin for sustainability
Customer Lifetime Value
Higher cashback rates are justified for customers with high repeat purchase potential
Competitive Positioning
Research competitor offerings and position your cashback strategically
Start Conservative
Begin with a lower rate and increase based on performance data
Monitor & Adjust
Regularly review performance and adjust rates based on results
A/B Testing
Test different rates with customer segments to optimize ROI