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Managing Cashback and
Reward Sites Effectively
Agenda
• Cashback Overview
• Reward Overview
• Cashback Case Study
• Reward Case Study
• Questions and Answers
James Little
Head of Affiliate Development



   James.Little@AffiliateFuture.co.uk
Back to Basics: What is Cashback?
Cashback sites Reward their Users with money
for buying from or registering with merchan...
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...
Understanding Cashback Sites
• All Cashback sites are different
• What the recession means to cashback
• Missed transactio...
Merchants: The Pros and Cons
Pros                        Cons
                            • Takes up your time
• High volu...
Merchants: Working with Cashback
• Seasonality Rates
• Importance of Competitive Pricing
• You can provide..
   • Voucher ...
The Future of Cashback
• More sites & Major Players
• Some consolidation / sell-outs
• Evolution – More product led offers...
Kevin Edwards
    Strategy Director,



kevin.edwards@affiliatewindow.com
Loyalty & Reward sites
• Long standing brand equity
• Offer sophisticated sites and loyal users
• Different mindset to cas...
Loyalty & Reward sites
• Selective partnerships
• Can offer multi-channel coverage, including
direct mail opportunities
• ...
Example Airmiles statement
Airmiles statement sales uplift
                                                  Minor
                                  ...
Loyalty – The Future
 • More brands entering space
 • Greater transparency on traffic value
 • Blurring the boundaries
 • ...
Mike Tomkins
Co-Founder, Top CashBack



    Miket@topcashback.co.uk
About Top Cashback
 • 100% Cashback model
 • No admin fees - free to use as a member or merchant
 • Almost 2,000 listed me...
Member Testimonial
 “Top CashBack is my first port of call when making any on-line
 purchase, from Ebay to energy, insuran...
Case Study

               Merchant Promotion Period
Clicks/Sales




                                           End
     ...
Merchant Testimonial

 “Top CashBack have been an excellent partner to IWOOT
 generating both incremental revenue and retu...
Maureen McDonagh
 Head – Nectar Extra



  m.mcdonagh@loyalty.co.uk
Nectar is the UK’s largest loyalty programme with over 50% of UK households

   16 major Points Issuing Partners          ...
More effective marketing at lower cost

 Points Update Mailings              Nectar.com                       Email




26...
Nectar eStores growth

• Launched in October 2005
• Over 280 retailers on eStores
• Amazon’s only UK reward partner
• Cont...
0
                 1000
                        2000
                               3000
                                 ...
Case study
 • Financial value of 7 x investment driven by:
     – Over 16% of customers shopping at
       Play.com via Ne...
Promotional opportunities                 DM examples:

 • Participate in a double / triple
   points campaign proven to l...
Any Questions?
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Managing casback and reward sites effectively

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Transcript of "Managing casback and reward sites effectively"

  1. 1. Managing Cashback and Reward Sites Effectively
  2. 2. Agenda • Cashback Overview • Reward Overview • Cashback Case Study • Reward Case Study • Questions and Answers
  3. 3. James Little Head of Affiliate Development James.Little@AffiliateFuture.co.uk
  4. 4. Back to Basics: What is Cashback? Cashback sites Reward their Users with money for buying from or registering with merchants. 1) Customer visits Cashback site 2) Customer sent to Merchant site Customer buys from Merchant Cashback site receives commission and pays to Customer
  5. 5. More big brands getting involved White labels Cashback providers provide an easy way for big brands to get involved
  6. 6. Cashback Site Popularity Recession Proof? Sales and Clicks show no sign of slowing down, despite current financial climate..
  7. 7. Understanding Cashback Sites • All Cashback sites are different • What the recession means to cashback • Missed transactions • Rebate engines • Make sure you keep the users
  8. 8. Merchants: The Pros and Cons Pros Cons • Takes up your time • High volume of traffic – Need to constantly monitor for • Able to drive lots of abuse – Processing missed transactions transactions • Quality of the users • Online Savvy – Do they really want the product? • Price Savvy – Cashback customers often stay Cashback customers • Incremental sales vs. • Concerns over cannibalisation of Competitors sales, rather than incremental sales • High conversion – helps • Customer calls & negative ‘seal the deal’ feedback – no Cashback received
  9. 9. Merchants: Working with Cashback • Seasonality Rates • Importance of Competitive Pricing • You can provide.. • Voucher Codes • Offers • Content (Email Creative?) • Competitions / Prizes • Set different policies and rates
  10. 10. 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
  11. 11. Kevin Edwards Strategy Director, kevin.edwards@affiliatewindow.com
  12. 12. 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.
  13. 13. 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
  14. 14. Example Airmiles statement
  15. 15. Airmiles statement sales uplift Minor commission increase saw sales more than double for ‘double Airmiles’ promotion compared to normal earn rate periods 1st Normal Earn 2nd Normal Earn Double Airmiles Rate Period rate Period
  16. 16. Loyalty – The Future • More brands entering space • Greater transparency on traffic value • Blurring the boundaries • Enhanced content, destination sites • Cross borders
  17. 17. Mike Tomkins Co-Founder, Top CashBack Miket@topcashback.co.uk
  18. 18. About Top Cashback • 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
  19. 19. Member Testimonial “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.” Louise Top Cashback Member West Yorkshire
  20. 20. Case Study Merchant Promotion Period Clicks/Sales End Start Time
  21. 21. Merchant Testimonial “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 Moskov Online Marketing Manager I Want One Of Those.com
  22. 22. Maureen McDonagh Head – Nectar Extra m.mcdonagh@loyalty.co.uk
  23. 23. Nectar is the UK’s largest loyalty programme with over 50% of UK households 16 major Points Issuing Partners Collectors Over 30 Rewards Suppliers 12 month active UK Households Database Plus over 280 online retailers on eStores including:
  24. 24. More effective marketing at lower cost Points Update Mailings Nectar.com Email 26M+ per annum / 9M variants ½ billion personalised offers 200M+ sent per annum Open rates around 95% Coalition mailings Sponsor channels Collector surveys 1.5M detailed surveys 30% response rates
  25. 25. 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 “eStores is a fantastic way of collecting points” “Nectar eStores is something which gives Nectar the edge over other loyalty cards” Source: Nectar monthly focus group – female aged 18 - 24
  26. 26. 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 Nectar eStores - Daily order volumes 11/04/2008 25/04/2008 09/05/2008 23/05/2008 06/06/2008 20/06/2008 Impact of triple points promotions on retailer A’s units sales
  27. 27. 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 QUOTATION FROM PLAY.COM: : “Nectar is a key partner for us • Over 80% of total Nectar eStores within our affiliate network. Nectar investment given back to Play.com eStores provides a shopping customers in Nectar rewards programme that is greatly valued by our customers, allowing them to • Total financial, brand and customer value benefit from both an ongoing loyalty reward and great deals at to Play.com worth almost 7x the total Play.com” investment
  28. 28. Promotional opportunities DM examples: • Participate in a double / triple points campaign proven to lift sales • Display media opportunities • 12 month email calendar • Constantly refreshed offers – voucher codes/deal of the day Email examples: • Solus page per retailer to display bespoke content and offers • Sponsorship of a category page • CPA based shopping comparison engine • Cross promotional opportunities
  29. 29. Any Questions?
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