Microsoft offers rebates to search engine users

Microsoft has introduced a cashback scheme in its Live Search service in an attempt to increase repeat use of the service. Cashback is a already a familiar buzzword to UK consumers, unfortunately with at least two different meanings. Microsoft has now implemented a cashback scheme for Live Search, under which US residents receive rebates for certain purchases they make via the portal. Depending on its success on home ground, Microsoft may decide to extend the scheme to other countries. The idea behind this Cashback program apparently comes from the Jellyfish.com shopping platform, a recent Microsoft acquisition.

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Microsoft are counting on the rebate system to improve their site user retention rates. The cashback discount is not subtracted from the purchase price at the time of purchase by the online shop, but rather credited to a Microsoft Cashback account that users have to create before they make their first purchase. Repayments are delayed by 60 days from purchase to guard against customers returning their purchases but keeping the rebate. Accumulated rebates may be claimed as soon as a customers account is in credit by more than $5. Like PayPal, withdrawals are not automatic, but must be initiated by account owner, at which time the repayment method may be specified as by cheque, PayPal or bank transfer.

Cashback schemes rely on the apparent simplicity of their sales proposition – buy using our scheme and we give you money – to attract customers. The internal mechanics of the scheme, such as how the vendor benefits or the real benefits, if any, to the customer, are often hidden.

(trk)