structured report
TRANSCRIPT
From Awareness to Retention: Understanding the importance of brand awareness on consumer
buying behaviour to drive consumer engagement at
TopCashback.Name: Mayur Odedra
Student Number: 129053279
Course: BSc Business and International Relations
This report aims to improve customer engagement through an increased number of website purchases, by leveraging a higher level of brand awareness.Word Count: 5,495 (5,271 words, 224 images)
Executive Summary
This report aims to highlight the importance of brand awareness through understanding the customer
decision-making process of users, showcased in various theoretical frameworks. This analysis of why
brand awareness is important will subsequently answer how this information can increase customer
engagement in practice with four solutions. Therefore, achieving customer retention is a goal alongside
meaningful brand awareness; whereby users know and choose TopCashback over rivals.
The report begins by breaking down brand awareness in various aspects to signify the different
dimensions to the concept. This break down will be reinforced with a literature review for each aspect
and a consequent discussion to how the points link to TopCashback in order to solidify the significance
of the issue.
Academic theories will be used throughout in order critically reflect on the advantages and
disadvantages of the theory applied. In addition to this, the customer decision making process will be
applied to TopCashback to crystallise the process the consumer goes through with respect to the ideas
of brand awareness.
Moving on from this, the report will gain context specific coverage of the cashback industry and hence
TopCashback with theories of mental accounting and the repurchase effect which will equally highlight
the importance of existing consumers in customer engagement and the idea of repeat purchases. The
end point of this understanding is to provide a linkage of how the above seeks to improve customer
engagement through four solutions;
Faster cashback payments
Boosting word of mouth communications
Clearing cache
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Personalising emails to improve the customer journey
The report additionally evaluates the usefulness of theories and how they fit with online shopping habits
of cashback users. It will conclude by highlighting the solutions and analysis to be accurate and
applicable to TopCashback ‘s problem of improving brand awareness and subsequently improving
consumer engagement.
Acknowledgements
I would like to take this opportunity to thank, Steven Tipping, Graham Jenner, Das Singh, Ben Middlemas
and acknowledge all TopCashback employees whom supported me throughout the development of this
project. Thank you.
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Table of Contents
1. Introduction: Cashback Landscape 6
1.1 Industry Importance 6
1.2 TopCashback Overview 6
1.3 Research Objectives 6
2. Methodology7
2.1 Secondary Research 7
3. Literature Review and Discussion 7
3.1 Literature Review: Nodes 7
3.1.1 Significance of Nodes for TopCashback 8
3.2 Literature Review: Depth and Breadth 9
3.2.1 Significance of Breadth for TopCashback 9
3.3 Literature Review: Brand Awareness as a decision aid 10
3.3.1 Significance of Time Spent Online for TopCashback 11
3.3.2 Significance of Page Visits for TopCashback 13
3.4 Literature Review: Perceived Quality14
3.4.1 Significance of Perceived Quality for TopCashback 14
4. Consumer Decision making process applied to TopCashback16
4.1 Need Recognition 16
4.2 Information Search 16
4.2.1 High & Low Involvement Situations 17
4.2.2 Consideration Set 17
4.3 Service Evaluation 18
4.4 Purchase 18
4.5 Post Purchase 19
4.6 Problems 19
5. Analysis Supporting Solutions 20
5.1 Mental Accounting 20
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6. Solutions for Brand Awareness and Engagement 21
6.1 Pay cashback faster 21
6.1.1 Can this work for TopCashback? 22
6.2 Boost word-of-mouth communication 23
6.3 How clearing cache helps 24
6.4 Personalising emails 25
6.4.1 Why this works 25
7. Conclusion 26
8. Glossary 27
9. References 28
10. Appendices 33
10.1 Process of cashback 33
10.2 Amount of cashback 34
10.3 Illustration of nodes 35
10.4 Brand recall link to engaged time on website 36
10.5 Average time a user spends on TopCashback 37
10.6 Market share compared to Quidco 38
10.7 Visit share compared to Quidco 38
10.8 Cashback rates as the most important feature 39
10.9 Highest cashback guarantee 40
11 Kotler’s customer decision making process 41
11.1 Three mosaic profiles 41
11.2 Consideration Set applied to TopCashback 42
11.3 Habit formation of men and women 43
11.4 Demographic breakdown 44
11.5 Detailed member demographic breakdown 44
11.6 TopCashback vs Quidco 45
11.7 Maslow’s Hierarchy of Needs 47
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11.8 Reasons not to use TopCashback 48
11.9 New customer decision making 49
12 Breakdown of Mental Accounting 49
12.1 Why faster cashback rates increase retention 50
12.2 Cashback payments from banks 51
12.3 Influence of word-of-mouth 52
12.4 Honest Mum and TopCashback 53
12.5 Smarter Profiling 54
12.6 Email personalisation 54
12.7 Data to highlight personalisation 55
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1. Introduction: Cashback Landscape
1.1 Industry Importance
Data from (Tradedoubler, 2015), based on 8 million online sales across the continent helps in
understanding the role of cashback. Data highlighted 93% of UK purchases that start on cashback
websites also end on these websites.
Thus once users begin to use cashback websites, they tend to follow up until a transaction is complete.
Huang (2012) argues the more a brand is recognised online, the higher the possibility for it to be chosen
over rivals and increase its profit potential. Therefore, a higher rate of awareness for TopCashback
within the industry would help in achieving an increase in profit.
1.2 TopCashback Overview
TopCashback is an online cashback company which operates in four primary areas; UK, USA, China and
India through a cashback website. Cashback according to (Papworth, 2015) can be defined as the
process of rewarding members for website usage, by offering a certain amount of money to a consumer
after they make a purchase through the website, illustrated in (Appendix 10.1). The amount of cashback
received depends on the offer, shown in (Appendix 10.2).
1.3 Research Objectives
The report’s objectives are two part as follows:
To examine the role of brand awareness in consumer buying at TopCashback and
To leverage this knowledge by providing solutions in enhancing engagement of users
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2. Methodology
Extensive research has previously been conducted by TopCashback, which has led to the following
supporting this project:
2.1 Secondary Research
In-house research from TopCashback alongside existing literature in the cashback industry will
assess the practicality of theories and solutions outlined. Under this secondary data, multiple
methods such as interviews with cashback users have been used to provide clout to the project
with an emphasis on an accurate portrayal of cashback users buying behaviour.
3. Literature Review and Discussion: Why Brand Awareness
matters and the significance for TopCashback
3.1 Literature Review: Nodes
Relevant to the idea of brand awareness is how consumers formulate opinions of brands and store
knowledge. Kotler & Keller (2014) outline the associative network memory model to be the most widely
accepted view of long term memory structure in the form of nodes and links. Nodes store information
and differ in degree of strength with some nodes having a bigger influence on consumers than others.
From this it may be assumed the more unique a node is, the higher the chance for memory retrieval
from a consumer’s perspective. Romaniuk & Gallard (2007) contest this in their study finding consumers
did not think that the brand they purchased from had more unique characteristics than other
considered brands. This illustrates that although consumers do need to differentiate brands, this can be
done subtly.
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3.1.1 Significance of Nodes for TopCashback
The previous point is therefore especially important for TopCashback. As the cashback industry is
condensed without major differences between rivals it is critical for TopCashback to stand out and
highlight the positive nodes in the sequence of thoughts a consumer may enter when considering the
company during the decision making stage.
As revealed by (Appendix 10.3), the brand name triggers a thought pattern. Although there are not only
two thinking processes this model does accommodate the two extreme scenarios, whereby a consumer
is for and against using the website. Favourable brand associations occur when consumers perceive a
brand to have benefits that satisfy their problems. The problem here is saving money on everyday items
and more.
Favourable brand associations for the company include the newly designed hummingbird logo.
Figure 3.1.1
For the consumer, the brand logo is one of the most important associations (Epley & Gilovich, 2006). The
point being, TopCashback have already started to tackle brand awareness through changing its brand
image. Mortimer (2015) comments the change in TopCashback’s logo compliments the change in
audience and consequent shift from an outdated profit driven mentality with the previous £ logo.
The even split of male and female users on the website is highlighted in the contrast of green and pink in
the hummingbird. Members have commented on the change of the website by highlighting themes such
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as the company’s newfound professional look and the logo epitomising the company’s cashback
generosity (TopCashback, 2015). This suggests a positive step in the associative network model, which is
solidified with member insight to validate the power brand associations have.
3.2 Literature Review: Depth and Breadth
Brand awareness can further be broken down in terms of depth and breadth. Depth reflects how easily
consumers can recall or recognise the brand (Kotler & Keller, 2014). This definition however has its limits
which leads to the more encompassing definition of breadth. Breadth refers to the range of purchase
situations whereby the brand comes to mind (BrandHook, 2016) which enables users to purchase.
3.2.1 Significance of Breadth for TopCashback
The latter is important for TopCashback as it links to integrating the idea of cashback into online
shopping habits. Tipping (2014) Engagement and Retention manager of TopCashback UK, found this to
be problematic for the industry and TopCashback. When consumers look for the best money saving
deals online, 34% of people forget to use cashback websites completely. 25% of consumers use
cashback sites for research but do not purchase through them.
Figure 3.2.1 (Tipping, 2014)
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Tipping (2014) puts forward the reason for the latter is due to cashback websites not always providing
the best complete deal. Point being, awareness renders meaningless if in buying situations users
continue to forget to use TopCashback, reinforcing the second aim of the report.
Figure 3.2.2 (Tipping, 2014)
For example, if ASOS have 20% off with a student code, these codes cannot always be used in
conjunction with TopCashback. For this reason, consumers prioritise the code to outweigh the benefits
of cashback, due to it being a better overall deal. This is symptomatic of an overall problem within the
cashback industry.
Nonetheless, the figure of 34% symbolises a sizeable proportion of opportunities missed to convert
online shoppers who forget to use cashback completely due to a lack of awareness. As for the online
codes, on the rare occasion TopCashback cannot agree on getting the codes on the website, this issue
extends from the problem solely being brand awareness related to that of an industry issue.
3.3 Literature Review: Brand Awareness as a decision aid
Consumers may use brand awareness as a decision heuristic (Macdonald and Sharp,2000) which is a
reminder that influences consumers to choose the brand. This reinforces the role familiarity plays for
the consumer as intuitively consumers believe familiar brands to be trustworthy (Ha, 2004). Petty &
Cacioppo (1986) further solidify motivation to be a factor within the decision process.
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This supports the idea that consumers lack the motivation to decipher between brands. Echoing (Hoyer,
1984), consumers aim to minimise the efforts of decision-making in terms of time spent, and cognitive
effort by choosing brands they are familiar with. This is vocalised in the finding from (Pradhita 2016)
whom found well-known brands in low involvement scenarios to require less effort when being chosen,
which compliments the idea of habitual buying later provided.
3.3.1 Significance of Time Spent Online for TopCashback
Linking on to the above points, the idea of online time spent can be used to decipher the role minimal
efforts and time play for an online website.
26/12/2015
02/01/2016
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05/03/2016
12/03/2016
0:00:000:00:430:01:260:02:090:02:520:03:360:04:190:05:020:04:06
0:03:28
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0:04:09
0:04:20
0:04:25
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Average Time Spent on www.topcashback-.co.uk
Date range
Ave
rage
tim
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visi
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n To
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Cash
back
Figure 3.3.1
Contently (2014) highlights looking at times spent online is an often overlooked aspect of customer
engagement. It was found visitors who access the website for three minutes returned twice as often as
those who stayed on the website for one minute. In a separate analysis (Contently, 2014) pinpointed the
longer a consumer is engaged with site content which in this case may be deals on the front page, the
better the brand recall illustrated in (Appendix 10.4); which compliments the depth definition of brand
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awareness. This links to (Bertini, 2015) findings for an unnamed cashback company. Consumers were
found to know within the first 2 minutes of being on a cashback website whether they would purchase
from the website or not.
The point being, TopCashback’s length of average time a consumer spends is relatively high at 3.6
minutes (Appendix 10.5) which should in theory tackle the problem. On the other hand, it may be true
that awareness led consumers to the website and they spend longer than average on the website,
however this does not translate to purchases or purchase intention. Tipping (2014) alludes to how this
point makes the issue of translating brand awareness to retention difficult, as in some cases users move
on to use websites such as Quidco and purchase from rivals instead, even when aware of TopCashback.
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3.3.2 Significance of Page Visits for TopCashback
As the cashback and rewards industry is not conventionally reflected through in-store shopping
habits, the idea of online page visits may help in assessing the importance of awareness for
engagement within the industry.
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Figure 3.3.2, (Experian Marketing Services, 2016)
The above signifies rivals with higher page visits. Tipping, (2014) argues even if a user’s visits or signs up
to TopCashback, this will not guarantee website usage. However, (Cothrel, 2000) crystallises if a brand
has more page visits, it is more likely to be considered during the decision making period.
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This is especially the case when the motivation to search for alternatives is low. Wilson (1992) found the
purchase intention of consumers to be higher in situations when the brand is top-of-the-mind (Aaker,
2009), whereby cashback as a concept is epitomised by one brand. For this reason, the idea of
personalising emails will be one of the solutions as it provides a direct means of users accessing the
website through deals that are relevant to their online shopping habits.
3.4 Literature Review: Perceived Quality
Brand awareness can impact the perceived quality of a brand. (Macdonald, 2000) outlines knowing a
brand can impact the post-purchase evaluation and feelings a consumer has. This will link to one of the
solutions provided later in the report; emphasising word of mouth communication to evoke a sense of
trust from consumers.
Perceived quality is processed in the consumer’s mind through cognitive rationalising (Bawa & Kansal,
2008). Let us begin with the initial awareness of a brand. If a consumer is familiar with a brand they may
conclude the company is spending a lot on advertising. If it does spend a lot on advertising, it must mean
the company is profitable (Macdonald, 2000). If this is true, this may extend to the assumption that
other consumers like and use the brand and are happy with the service, which could drive motivation to
join the website and raise awareness through rationalising.
3.4.1 Significance of Perceived Quality for TopCashback
TopCashback’s brand awareness was lower than that of its rival Quidco when last measured. The
diagram illustrates the significance of the issue in relation to competitors.
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Figure 3.4.1, Source: (Tipping, 2014)
This sheds light on how the perceived quality of Quidco may be higher, which has led to the brand being
perceived as the UK‘s cashback market leader (Christie, 2015) and having a higher amount of market
share alongside page visits (Appendix 10.6) (Appendix 10.7). TopCashback outperformed Quidco on
every other variable including best cashback rates offered which was found to be the most important
variable (Appendix 10.8) and hence a brand strength. However, this is meaningless as the brand cannot
engage consumers solely through rates. Awareness enables this strength in rates to be visible to online
shoppers. Without awareness, consumers may not know about this and brand strengths such as the
cashback guarantee (Appendix 10.9).
Perceived Quality closely links to brand goodness according to (Aaker, 2009). This goodness is what
consumers use to measure if a brand is worth their time and effort which consequently impacts
engagement on the website. TopCashback users are happy with the cashback rates provided, which can
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be categorised as the actual quality. This however is only partially beneficial, as the perceived quality
which is strongly associated to brand awareness (Aaker, 2009), needs to be aligned to the actual quality;
the cashback rates, for the consumer to believe in the brand and ultimately purchase. This process
would vocalise the transition from simply knowing a brand, to wanting to purchase from a brand.
4. The Consumer Decision Making Process applied to
TopCashback
Hebert (2011) outlines brand awareness to occur three times within Kotler’s (2010) consumer decision
making process (Appendix 11). Therefore, information search, evaluation of alternatives and post
purchase evaluation will be focused on whilst giving an overview of the whole process.
4.1 Need Recognition
Online discount shopping is most likely to be recognised by savvy shopper’s which fit three Mosaic
profiles (Experian, 2016). These are outlined in (Appendix 11.1). A higher level of brand awareness can
act as an incentive in persuading users to obtain the best deal by joining the website (Macdonald, 2000).
Furthermore, (Jenner, 2012) Head of UK Partnerships at TopCashback found 25% of consumers use
cashback websites to give them ideas on products and services to purchase. For example, pushing
exciting rates on TV’s in May before major sporting events such as Euro 2016, could help in creating a
perceived problem of needing a better TV and in turn place TopCashback in the need recognition stage
for a consumer.
4.2 Information Search
At this stage the consumer begins to formulate opinions of the brand. This reflects the importance of
nodes previously, which reinforces the role perception has for consumers. Thus it is important for
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TopCashback to influence these perceptions to work as an advantage, for consumers looking for the
best discounts online, and be perceived as top-of-the-mind in the market.
4.2.1 High & Low Involvement Situations
TopCashback offers a variety of products thus the decision making may be different depending on the
items, examined below.
4.2.2 Consideration Set
The first process assumes consumers to be rational when looking at the benefits of a brand in high
involvement situations (Howard and Sheth, 1969). A consideration set reflects the number of brands,
typically four or five, a consumer contemplates choosing (Krishnamurthy, 2001). Without brand
awareness occurring, no other communication effects can occur (Rossiter & Percy, 1987). This is because
a consumer must be first made aware of a brand before consideration starts. This consideration is
related to awareness as it can lead a brand to be seriously considered when making a purchase, which is
different from a consumer being aware of a brand (Krishnamurthy, 2001).
Furthermore, a brand that is not considered due to low brand awareness is unlikely to be chosen when
rivals in the same industry have higher awareness rates (Baker, 1986). This is due to consumers limiting
efforts in seeking information when they have identified brands which fit the criteria they are looking
for. If we relate this back to figure 3.4.1, it is possible to create a mock scenario (Appendix 11.2) of how
decision making for a consumer would be involving TopCashback.
4.2.3 Habitual Buying
This lens highlights consumers to give much less thought and choice to what they are buying compared
to the consideration set. Choices are based on word of mouth and brand expectations (BrandHook,
2016). From this lens, buying becomes habitual especially when we look at (Appendix 11.3), in the way
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the habit formation of women, 59% of TopCashback’s user base tend to buy based on habit between the
ages 45-54 which makes up roughly 29% of TopCashback users (Appendix 11.4) (Appendix 11.5). This
lens argues the brain to work on auto-pilot for some users (BrandHook, 2016) and provides an
alternative view of how shoppers may use cashback websites once strong brand awareness has formed.
4.3 Service Evaluation
Numerous cashback sites are readily available for consumers to use which enhances the role service
evaluation. For example, a user can compare how fast they were paid through TopCashback and
compare this to rivals. Likewise, users can infer if they encountered an issue with cashback tracking and
which company they feel dealt with the issue best. TopCashback have arguably taken a step ahead of its
main rival Quidco with the infographic outlined in (Appendix 11.6). (Appendix 11.7) additionally
highlights how motivation (Maslow, 1943) may be increased and influence consumers during this stage
with TopCashback’s unique selling point of the option to give a proportion of cashback to charity.
However, users have questioned the reliability of TopCashback tracking cashback claims and in terms of
engaging, did not find the consumer experience enjoyable to use compared to other websites (Appendix
11.8).
4.4 Purchase
At this stage the consumer goes through with the purchase at TopCashback. An important area here is
the follow up the company has to engage the consumers through emailing users for instance about
deals they may be interested in.
However, disputing Kotler’s model, TopCashback may only enter the process at this stage. This is due to
consumers already knowing what they want to purchase and looking at cashback websites as a means of
benefitting from an existing purchase via gaining a cashback reward. Consumers know which brand they
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want to purchase from and choose a cashback website based on this. This goes against the finding from
the TopCashback survey which found 47% of respondents to say cashback was more important than the
brand, which led to 52% using brands they had not initially considered (Jenner, 2012). This would place
TopCashback in the ‘Information Search’ stage instead.
4.5 Post Purchase
Arguably customer retention starts after the consumer has transacted and begins to post feelings about
the brand online (Magento, 2015). Thus robust positioning to align the positive aspects of the website is
needed during this stage. What consumers say about TopCashback is instrumental and if positive can
develop brand loyalty, which is a derivative of strong brand awareness (Kotler, 2010).
4.6 Problems
Although the above depicts the strength of brand awareness at subsequent stages, theoretically it is not
without problems. Traditional theories have looked at the decision making process as a sequential series
shown above. However, (Court, 2009) highlights the consumer journey to be cyclical in nature (Appendix
11.9), due to elements such as the internet, which makes sense given TopCashback operate online.
Court (2009) conducted a study to find these differences and found two main points to solidify the new
customer journey. Firstly, the brand consideration is reduced from the beginning not increased as
Kotler’s model suggests. This is due to the amount of online choices consumers face when looking to
save money online. Consumers only consider brands that have made it through the barrage of
messages. Therefore, brand awareness arguably matters now more than ever with brands who are
initially considered being three times more likely to be purchased from (Court, 2009). However, brands
are also more likely to be added after active consideration, as brands have the potential to interrupt the
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decision making process due to the vast amount of cashback websites having one goal, engaging and
retaining consumers.
Point being, customer engagement can still be achieved this way however as stated, initial consideration
is favourable given the uncertainty in the amount of websites that users consider after the initial stage
(Court, 2009). Secondly, customers are more empowered in this model. Information is pulled according
to internet reviews hence consumer driven marketing is key. This links to Yoon (2002) point of brand
awareness being influential to a consumers perceived trust of a website through mediums such as brand
experiences. This links to the solution of word-of-mouth communication which reiterates consumers
relying on peers for accurate representations of brands and the subsequent decrease in brands being
the sole information providers (BrandHook, 2016).
5. Analysis Supporting Solutions
Before moving on to solutions it is helpful to outline the model of mental accounting (Appendix 12). This
model compliments the cognitive theory on decision-making explained and reiterates decision aids
consumers employ when making decisions. We have pinpointed decision-making theories and a critique
of these is that they may not be applicable to the cashback industry. For this reason, using this model is
useful, as it offers context specific case of decision making within the cashback industry.
5.1 Mental Accounting
Bertini (2015) highlights this theory to play a major role in cashback companies. Mental accounting
refers to how consumers code, categorise and evaluate financial outcomes of choices (Thaler, 1985).
Cashback can be seen as fungible to users of TopCashback. This means consumers do not label this form
of income.
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Therefore, cashback is spent without much concern as labelled forms of income. Subsequently it can be
inferred that cashback has no context. Once users are presented with a promised saving of cashback,
this promotes further purchases, known as the repurchase effect (Bertini, 2015). Another solution,
faster payments in this sense would intensify the repurchase process whereby consumers engage by
actively searching for deals and willing to spend more at a faster rate.
6. Solutions for Brand Awareness and Engagement
With respect to theories outlined, the focus will be on how awareness if already existing can translate to
further brand awareness and subsequently customer reengagement in the form of purchases.
6.1 Pay cashback faster
Tipping (2014) found through a cashback survey that guaranteeing faster payment speeds would entice
loyal members of websites such as Quidco and persuade members not users of TopCashback (Appendix
12.1). Patel (2014) argues online websites operate under an instant rewards mentality. For
TopCashback, if consumers cannot obtain cashback fast enough, it discourages users to spend time on
the website. It may also increase suspicions of consumers not yet members, extend to the assumption
they will not receive cashback. As a result, engagement can fall and only a small selection of patient
users continue to use TopCashback.
Moreover, the introduction of banks offering cashback has meant this rival can pay instantaneously
(Appendix 12.2) compared to TopCashback who rely on affiliate networks to approve cashback claims.
However, TopCashback has already enticed companies such as Debenhams and M&S to take part in the
faster paying scheme, whereby users obtain cashback faster with certain merchants.
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Persuading more merchants is therefore instrumental. However, Jenner (2012) echoes this issue relies
on changing the stigma of merchants currently not on the website looking at cashback websites as
simply a converter of traffic. After a consumer has found a deal, these merchants assume cashback
websites only enter the process during the purchasing stage. This is however disputed in the decision
making process outlined prior.
6.1.1 Can this work for TopCashback?
Disputing the idea of faster payments, (Bertini, 2015) found irrespective of the time lapse in receiving
cashback, consumers still look at future spending under the principles of mental accounting which
encourages spending.
From this angle, the size of cashback may be the stimulus for engagement. Bertini (2015) argue cashback
payment is seen as a windfall gain under the principles of mental accounting. Arguably, these windfall
gains are trivial when assessing one’s lifetime wealth. In other words, small payments of cashback the
consumer receives is more likely to be spent quickly and encourage overall spending.
If a consumer is only anticipating a small amount e.g. £1.50 from purchase it may have little impact on
influencing spending compared to £50 cashback. This reinforces (Bertini, 2015) findings of purchase
likelihood increasing with the size of the cashback offered.
However, (Epley, 2006) disputes this, this to be dependent on how wealth is perceived. Different income
groups may have the tendency to look at wealth differently as purchasing powers are different. It was
found lower income groups looks at wealth in terms of absolute wealth (Epley, 2006). This means any
increase in income hence cashback, results in an increase in absolute wealth. Given this mentality, for
lower income groups it’s not always the case that small windfall gains lead to more spending as lower
disposable income earners are responsive with cashback and save in smaller amounts.
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Looking at TopCashback’s user base in (Appendix 11.5), the website is mostly used by high disposable
income earners therefore Epley’s argument may not apply as much as Bertini’s. The repurchase effect
thus depends on consumer demographics, wealth and mental accounting principles.
6.2 Boost word-of-mouth communication
Tipping (2014) argues a sizeable proportion of users to be aware of the TopCashback but unaware of the
key features TopCashback offer. This renders the awareness meaningless as consumers do not purchase
and can be seen as lack of engagement. The online community plays a major role in amplifying word of
mouth communications so other online shoppers are aware of the experiences (Appendix 12.3) with the
TopCashback. This closely links to the idea of enhancing perceived quality outlined prior. There has been
a targeted effort for the female user base of TopCashback through the promotions of the Honest Mum
campaign (Appendix 12.4) which depicts the ease of using TopCashback with an emphasis on key
features such as the cashback guarantee, and tell-a-friend campaign. The latter aims to credit both the
friend and sender with cashback and makes cashback an experience.
As customer engagement arguably starts when conversion is complete (Magento, 2015), the feedback of
information from users is important for both existing and new users when deciding if they trust the
website to purchase. Linking to the idea of motivation, hearing positive aspects about the brand
facilitates in reducing shopping efforts for users who are not motivated enough to decipher between
brands. This solution also tackles the symptomatic problem of the industry which is validating the idea of
cashback, which has been often labelled with connotations such as ‘spam’ (Aaron, 2005).
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Marton and Booth (1997) propose awareness to be consistently reshaping as a result of consumers
experiences with a brand. Thus, positive shopping experiences from existing users is important when
looking to boost awareness and retention given the role would-of-mouth communications has.
6.3 How clearing cache helps
Likewise, TopCashback could aim to promote customer loyalty, through vocalising an idea which no rival
in the industry has put efforts into pushing. Visiting more than one cashback websites albeit unknown,
has an impact on the cookie trail (Williams, 2014). In other words, visiting more than one cashback
website such as Wowcher or Quidco has the potential to confuse the cookie trail and lead to cashback
not tracking (MoneyDashboard, 2015). This is a common problem for cashback claims (Tipping, 2014).
For this reason, users are advised to clear their cache before a transaction which is often overlooked due
to ingrained online shopping habits, linked to a lack of patience users have when looking to earn money
back (MoneyDashboard, 2015). Marketing efforts could focus on the benefits of using one cashback
website; TopCashback, in order to avoid the stress of having cashback not tracking. This could filter
through to word of mouth communications reiterating this message and placing the perceived quality of
TopCashback to be better than current rival Quidco. This forms a market leading image which
(Ranaweera, 2003) states is powerful when aiming to increase retention. Many members are unaware
of this simple fix which could fix countless transactions occurring daily. Furthermore, implementing this
may be favourable with consumers, as consumers increasingly respect the anticipation of problems
(BrandHook, 2016).
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6.4 Personalising emails
Finally, looking at my placement role provides a methodical way of tackling consumer retention and
reinforcing brand awareness as it aims to increase time spent and page visits on TopCashback explained
prior. Ranaweera (2003) poses looking at what satisfies consumers is key in understanding how to
engage users when online. From an email marketing perspective, engagement is linked to
personalisation of messages (Hamirani, 2016). Coupled with the fact this is TopCashback primary means
of communication, makes it one of the key drivers for consistently engaging users in the form of
newsletters and individual merchant emails. The open rate metric reinforces the percentage of users
aware of the brand whom choose to engage with the messages sent.
Wegert (2014) comments this metric to be key in analysing awareness form an email perspective,
especially for existing users. The reason is these users have the power to spread the positive experiences
online with TopCashback and therefore and influence word of mouth communication and hence spark
brand awareness to begin with which will funnel down to increased engagement.
One form of personalisation the company has implemented is smarter profiling explained in (Appendix
12.5)
6.4.1 Why this works
Engagement form this lens can be measured through open rates and click through rates. During my
placement, we have implemented tests of personalisation, albeit on few occasions and inconsistently.
For the most part this has been due to a traditional style of email messaging the company has opted for.
However, when personalisation has been used it has been successful.
For example, on an email I created we used a split test to analyse the impact of personalisation. Shown
in (Appendix 12.6) the open rate and corresponding click through rate was higher for the email which
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was personalised with the members first name. Although some members do not offer their personal
information, evidence suggests the more personalised, the more engaged and likely a user is to
purchase. This may influence the word of mouth process if users are happy with the personalisation and
share this online which may enable users to be more receptive to giving personal information to
TopCashback.
Personalisation extends from just the use of the name and the following could be implemented:
Personalised (not just first name, ‘For you’, ‘your bonus offer’)
Create urgency e.g. ‘limited time’, ‘ending soon’
Be invitational rather than using imperatives
Highlighting the clout of the first point is shown in (Appendix 12.7). Between the two emails in the USA
the simple addition of ‘Your’ in the second subject line led to almost a 3% increase in open rate, which is
significant given the amount of users whom received the email. Point being, consistently following the 3-
point rule may help in achieving higher rates of retention and positive shopping experiences for users. If
this previous but sparse data is any indication to how engagement may increase provided the brand
awareness acts as an incentive to for user to join our emailing list, engaging users may be a few simple
solutions away.
Hamirani (2016) outlines 86% of consumers to say personalisation plays a role in their purchasing
decision. Given consumers have vocalised this, if TopCashback continues to use a one size fits all
approach to emails and not account for individual differences, they will continue to miss out on creating
valuable, long-term consumer relationships.
7. Conclusion
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In summary, the solutions provided tackle the issue of consumer engagement with respect to brand
awareness and the impact this has on a consumer’s decision with reference to the research objectives
outlined. This seeks to place TopCashback top of mind for consumers. The idea of faster payments
compliments the context specific idea of mental accounting applied to the industry. The impact of word-
of-mouth reiterates the role perceived quality has on a consumer’s decision. Personalising emails
reinforces the role of brand awareness as a decision aid, by producing relevant content in order to gain
more page visits. The theory and solutions are intrinsically linked to boosting brand awareness and
keeping consumers engaged in an industry where using different brands has become the norm
(BrandHook 2016).
8. Glossary
Due to ambiguity of terms, the following definitions will be used.
Brand Awareness: The ability of a consumer to recall or recognise a brand (Hoyer, 1984)
and the extent to which the qualities the TopCashback comes into the consumer’s mind
during the decision making process (BrandHook, 2016)
Consumer buying behaviour: The total sum of a consumer’s attitudes, preferences,
intentions, and ultimately decisions when choosing a brand (Grimsley, 2016).
Customer engagement: The extent consumers use the website in terms of purchasing,
repurchasing, posting testimonials and interacting with TopCashback. Engagement aims
to optimise website usage for existing users and additionally attract new users with
TopCashback’s website features (Van Doorn, 2010).
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10. Appendices
Appendix 10.1: Process of cashback
(TopCashback, 2016)
Additionally, the website summarise that the company essentially gets paid to advertise a retailer given
the company can send a paying customer to the website.
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Appendix 10.2: Amount of cashback
(TopCashback, 2016)
So if a user who had already signed up was to click through from the ‘Get Cashback Now’ button to
Clarks website, they would be eligible for cashback from TopCashback. Assume the user did this and
subsequently spent £85 on the Clarks website. This would mean they are entitled to £6.25 cashback.
Calculation: £85 x 0.0735 = £6.25 (1dp)
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Appendix 10.3: Illustration of nodes
Appendix 10.4: Brand recall link to engaged time on website
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(Contently, 2014)
Brand recall which is one aspect of brand awareness can be increased by engaging consumers on the
website with features such as ease
Appendix 10.5: Average time a user spends on TopCashback
(Experian, 2016)
Average time spent on the past 3+ months = 42.8/12 = 3.6 minutes
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Appendix 10.6: Market Share compared to Quidco as a
percentage of all industries
(Experian, 2016)
Appendix 10.7: Visit share compared to Qudico
(Experian, 2016)
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Appendix 10.8: Cashback rates as the most important feature
(Tipping, 2014)
Existing awareness may have resulted from a recommendation or marketing stimuluses such as an
advertisement. The motivation to join however revolves around the cashback rates offered. But, this
form of retention although important (Ranaweera, 2003) renders meaningless if TopCashback cannot
convert awareness to usage. This is further illustrated below.
Engagement Funnel for TopCashback
(Tipping, 2016)
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Shown above is the current level of awareness and the usage of members who are aware. The gap of
16% of users who are aware but do not go on to use the website, symbolises the issues in converting
brand awareness to meaningful brand awareness.
Appendix 10.9: Highest cashback guarantee
Source: https://www.topcashback.co.uk/blog/highest-cashback-guarantee/view/
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Appendix 11: Kotler’s Customer Decision Making Process
(Kotler, 2010)
Appendix 11.1: Three Mosaic profiles
Mosaic Type AttributesAffluent Working Families 12% more likely to visit than average
consumer (Experian, 2015). Earn £40k to
£100k, both parents and young children. Look
for savings on all items.
Older Suburban Dwellers 8% more likely to visit (Experian, 2015). Earn
£30k to £80k. Tastes are unpretentious. Look
for savings on mainstream brands.
Young House Buyers 6% more likely to visit (Experian 2015). Young
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singles and couples. Internet primarily used
to search for deals.
(Experian, 2016)
Appendix 11.2: The consideration set applied to TopCashback
This for the sake of argument is all the cashback companies which operate in the industry.
Total set – TopCashback, Quidco, Wowchering, Greasypalm
This is the amount of brands a user has heard of and can either recall or recognise one or more aspects
of the brand.
Awareness set – Quidco, TopCashback, Wowchering
This is the stage where the user considers their options. Time is taken whereby users rationalise
thoughts and attempt to process large volume of information from competing brands.
Choice set – Quidco, TopCashback
The decision is the finale stage of the consideration set theory, whereby the users has made their
decision of which brand to pick. At this point we can reflect that brand awareness had a role in
mediating TopCashback from the awareness set to the choice set. As the report is two part in it’s aim, if
this is suitable the ultimate challenge is to take TopCashback from the choice set to decision as a result
of undeniable brand awareness.
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Decision - Qudico
Appendix 11.3: Habit formation of men and women in online
shopping
(BrandHook, 2016)
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Appendix 11.4: Demographic breakdown
(Tipping, 2014)
Appendix 11.5: Detailed member demographic breakdown
(Tipping, 2014)
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Appendix 11.6: TopCashback vs Quidco
(TopCashback, 2016)
Additionally, for members the highlighted point may build upon (Maslow, 1943) hierarchy of needs.
Through the idea that using the website will not only save the consumer money but also consumers
have the option to pay some of that cashback to charities, which may impact the decision to choose
TopCashback’s service over rivals.
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(TopCashback, 2016)
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Appendix 11.7: Maslow (1943) Hierachy of Needs
(Maslow, 1943)
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Appendix 11.8: Reasons for not using TopCashback
(Tipping, 2014)
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Appenidx 11.9: A new way to look at consumer decision making
(Court, 2009)
Appendix 12: Breakdown of Mental Accounting
In which of the two scenarios would you be more likely to go through with the purchase:
1) You have bought a ticket to Alton Towers online. As you enter you realise you forgot to print out
the ticket. You decide to buy another at the gate.
2) You decide to buy a ticket at the gate. As you arrive you realise you have somehow lost £60
before entering. You decide to buy the ticket anyway.
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Most people would choose scenario 2. In both scenarios you would have lost £60. In the first case
you may have already allocated the £60 in your mind mentally. Buying another ticket may exceed
your mental budget for Alton Towers. In the second scenario, the money you lost had no context, so
you had not yet exceeded your mental budget.
Source: (Kotler & Keller, 2014)
Appendix 12.1: Why faster cashback rates increase retention
(Tipping, 2014)
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Appendix 12.2: Cashback payments from banks
(Tipping, 2014)
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Appendix 12.3: Influence of word-of-mouth
(Court, 2009)
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Appendix 12.4: Honest Mum and TopCashback
Source: https://www.topcashback.co.uk/blog/honest-mum-how-does-topcashback-work/view/
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Appendix 12.5: Smarter profiling
For example, this email I created was sent to users who had shown an interest in the car hire category
and user recently booking a holiday instead of a random selection of members who just clicked on the
merchant. Through this smarter profiling and targeting of members, the likeliness of open rates and
subsequent purchases are higher.
Appendix 12.6: One of the few times an email included a first
name
Personalisation with a first name.
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No personalisation.
Appendix 12.7: Data to highlight personalisation engages users
(Experian, 2016)
This email was for US users. If this data is anything to go by, more personal emails in the UK could
increase open and click through rates and hence engagement.
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