managing casback and reward sites effectively
TRANSCRIPT
Managing Cashback and Reward Sites Effectively
Agenda• Cashback Overview• Reward Overview• Cashback Case Study• Reward Case Study• Questions and Answers
Back to Basics: What is Cashback?Cashback sites Reward their Users with money for buying from or registering with merchants.
1) Customer visits Cashback site2) Customer sent to Merchant site
Customer buys from Merchant
Cashback site receives commission and pays to Customer
More big brands getting involved
White labels Cashback providers provide an easy way for big brands to get involved
Cashback Site Popularity
Recession Proof? Sales and Clicks show no sign of slowing down, despite current financial climate..
Understanding Cashback Sites• All Cashback sites are different• What the recession means to cashback• Missed transactions• Rebate engines• Make sure you keep the users
Pros• High volume of traffic • Able to drive lots of
transactions• Online Savvy• Price Savvy• Incremental sales vs.
Competitors• High conversion – helps
‘seal the deal’
Cons• Takes up your time
– Need to constantly monitor for abuse
– Processing missed transactions
• Quality of the users– Do they really want the product?– Cashback customers often stay
Cashback customers
• Concerns over cannibalisation of sales, rather than incremental sales
• Customer calls & negative feedback – no Cashback received
Merchants: The Pros and Cons
• Seasonality Rates• Importance of Competitive Pricing• You can provide.. • Voucher Codes• Offers• Content (Email Creative?)• Competitions / Prizes• Set different policies and rates
Merchants: Working with Cashback
The Future of Cashback• More sites & Major Players• Some consolidation / sell-outs• Evolution – More product led offers?• Better Protection for merchants • More incremental sales, less cannibalisation• Closer relationship with merchants
Loyalty & Reward sites• Long standing brand equity• Offer sophisticated sites and loyal users• Different mindset to cashback• Different demographic to cashback• Data collection; user segmentation• ‘Value add’ competitions, engaged content etc.
Loyalty & Reward sites• Selective partnerships• Can offer multi-channel coverage, including
direct mail opportunities• Minor commission tweaks disproportionately
raise perception of a promotion’s added value• Annual marketing calendar provides affinity
opportunities
Example Airmiles statement
Airmiles statement sales uplift Minor commission increase saw sales more than double for ‘double Airmiles’ promotion compared to normal earn rate periods1st Normal Earn
Rate Period2nd Normal Earn
rate PeriodDouble Airmiles
Loyalty – The Future
• More brands entering space• Greater transparency on traffic value• Blurring the boundaries• Enhanced content, destination sites• Cross borders
• 100% Cashback model• No admin fees - free to use as a member or merchant• Almost 2,000 listed merchants• Amongst the largest member bases of UK cashback websites• Extra Incentives• ‘Fair Play’ policy• Significant promotional platform
About Top Cashback
“Top CashBack is my first port of call when making any on-line purchase, from Ebay to energy, insurance to interiors.” “I got a great cashback deal on my Prudential car insurance, making it by far the most competitive quote for a very comprehensive policy. I even got free breakdown cover!” “The no-fees approach works really well for me and I will continue to use and recommend TopCashBack.”
LouiseTop Cashback MemberWest Yorkshire
Member Testimonial
Time
Clicks/Sales
Merchant Promotion Period
Start End
Case Study
“Top CashBack have been an excellent partner to IWOOT generating both incremental revenue and returning customers.”
“They actively liaise with us to promote our latest offers while keeping focus on the customer, helping actively when dealing with queries and requests.”
“Top marks to Top CashBack!”
Julian MoskovOnline Marketing Manager I Want One Of Those.com
Merchant Testimonial
Nectar is the UK’s largest loyalty programme with over 50% of UK households
16 major Points Issuing Partners Over 30 Rewards Suppliers
Plus over 280 online retailers on eStores including:
Collectors
12 month active UK Households
Database
More effective marketing at lower cost
Points Update Mailings
26M+ per annum / 9M variantsOpen rates around 95%
Nectar.com
½ billion personalised offers
Coalition mailings
200M+ sent per annum
Collector surveysSponsor channels
30% response rates 1.5M detailed surveys
Nectar eStores growth
• Launched in October 2005
• Over 280 retailers on eStores
• Amazon’s only UK reward partner
• Continual Multi-Variant Testing
• Improve dataset within the Comparison Shopping Engine
• Increased ATF from 2.8 to 5.9 in the last 4 months
• Launch of Twitter in February
• Excellent customer feedback
Source: Nectar monthly focus group – female aged 18 - 24
“Nectar eStores is something which gives Nectar the edge over other loyalty cards”
“eStores is a fantastic way of collecting points”
Impact of triple points promotions on retailer A’s units sales
Nectar eStores - Daily order volumes
0
1000
2000
3000
4000
5000
6000
12/10/2007
26/10/2007
09/11/2007
23/11/2007
07/12/2007
21/12/2007
04/01/2008
18/01/2008
01/02/2008
15/02/2008
29/02/2008
14/03/2008
28/03/2008
11/04/2008
25/04/2008
09/05/2008
23/05/2008
06/06/2008
20/06/2008
Case study• Financial value of 7 x investment driven by:
– Over 16% of customers shopping at Play.com via Nectar eStores were acquired by Nectar eStores
– Incremental growth in shopping frequency of 3.2%
– Incremental retention of 33%– Incremental ATV
• Total media value of Nectar communications valued at more than 4x total investment in Nectar eStores
• Over 80% of total Nectar eStores investment given back to Play.com customers in Nectar rewards
• Total financial, brand and customer value to Play.com worth almost 7x the total investment
:“Nectar is a key partner for us within our affiliate network. Nectar eStores provides a shopping programme that is greatly valued by our customers, allowing them to benefit from both an ongoing loyalty reward and great deals at Play.com”
QUOTATION FROM PLAY.COM:
• Participate in a double / triplepoints campaign proven to lift sales
• Display media opportunities
• 12 month email calendar
• Constantly refreshed offers – voucher codes/deal of the day
• Solus page per retailer to display bespoke content and offers
• Sponsorship of a category page
• CPA based shopping comparison engine
• Cross promotional opportunities
Promotional opportunities
Email examples:
DM examples:
Any Questions?