The Adtraction Blog

Cashback sites for increased customer loyalty

Customer loyalty in modern retail can be challenging. According to a 2016 article by Forbes, one way to handle decreasing loyalty is to work with cashback sites which have proven to increase customer lifetime value by up to 30%. Ready to learn more about how they work and how you can work with them?

How do cashback sites work?

Cashback sites are incentive programs operated by a variety of companies where the consumer is paid back a percentage or fixed amount when purchasing. Consumers are registered with their own account which enables the programme to track the amounts that are to be paid back. Refunds are based on the commission level of the cashback site, and on average, half of their commission is paid back to customers.

Feedback indicates that typical cashback consumers appreciate online savings, access multiple points of reference and are loyal to their cashback concept of choice.

OK, so what are the advantages of working with cashback sites?

  • Cashback sites are popular and have large customer databases.
  • Cashback site customers are loyal to the concept they have committed to.
  • Detailed customer databases that allow the sites to work strategically with customer segmentation and optimise their sendouts.
  • They work through a variety of channels in order to reach customers. Newsletters, social channels and even apps allow them to reach out to their target groups.
  • Most cashback sites work actively with recruitment, often through TV commercials, influencers, podcasts and similar.

How can I work with cashback sites and what are cashback pushes?

A common strategy when working with cashback sites is to work with cashback pushes. During a cashback push, you increase the commission for a specific cashback site incentivising increased exposure. How exposure increases differs from program to program, but promotions through newsletters, websites and social channels are common.

Our experience is that traffic drastically increases during cashback pushes compared to other weeks. In certain cases, we see increases of up to 300% in comparison to normal weeks. At the same time, conversion rates commonly increase also for other weeks than when a push is present. In the long run, the increased conversion rates provide stability and predictability for the advertiser.

What works best during a cashback push?

Specifically what will work best during a cashback push can depend on a variety of factors; the site, the advertiser and season. However, we have noted down a few key takeaways you can consider for your next cashback push:

  • Push products that are easy to shop spontaneously
  • Push products that are not too expensive
  • Push products you are certain about having in stock

Lastly, how frequent should cashback pushes be done?

We generally recommend to do a cashback push every week. Pushes should ideally be spread across different cashback sites, as it can defeat it’s own end to be pushed too often on only one site. When doing pushes through an affiliate network, plans and commission level will be managed by the network.

Interested in knowing more or working with cashback sites? Reach out to your local account manager or get in touch with us if you are not already an advertiser at Adtraction.

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