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RetailMeNot’s study titled “State of CashBack Offers” analysed the shopping behaviour of more than a thousand US consumers.
The results of their study found that one third of consumers said that they were willing to shop from a new brand if it presented a cashback offer. In addition, half of consumers said that they were willing to purchase if they could combine their coupon with a cash back offer, and 20% of respondents believed that they even spent more than they planned to as a result of a cashback offer.
Not surprisingly, consumers love these sites because they save more. This makes it a powerful incentive, especially when combined with coupons, giveaways and discounts.
In fact, RetailMeNot’s cashback model has resulted to an average 3.4 times increase in conversions, and 46% increase in average order value for its retailers.
The data proves that if you’re not in a cashback website, then you’re missing out on A LOT.
….but don’t just aim to offer the best deals with the highest cashback offer.
If there’s one mistake that online business owners make, it’s making deals that won’t result into sales.
You can offer cash in exchange for making an account in an online store, but that won’t get you sales.
For example—GM and Chrysler offered extremely generous cashback deals before their bankruptcy. They paid each customer $3,000 – $ 5,000 in cash back for buying a car. While this technique increased their sales, it’s not exactly an ideal sales model.
The moral of the story?
Do not offer a cashback deal to the point where you won’t profit.
Seriously – you can offer awesome deals and not go bankrupt.
You can research and understand consumer needs to determine how you can increase the value of your brand. You don’t always need to offer the highest % and the highest $. What’s important is that customers feel that they are getting their money’s worth.
Now, you might be thinking:
Okay, I’m in! What do I do?
You need to find a good cash back website first.
But you can’t just pick any ol’ site on the internet.
You can get started with the biggest websites such as Topcashback and Quidco. Both sites are famous for paying about 105% of the cashback it receives from retailers.
But you can also experiment by posting the same deal on different sites, and determining which site drives the most traffic to your online store.
Now, what are you waiting for?
Get in a cashback website right now.
Chris has been at the forefront of eCommerce and a pioneer of online retailing since the early 00s. A 5-time Drapers Award winner, Chris has extensive experience in developing fashion brands online.
Chris founded Cake in 2016. Based in Birmingham, with offices nationwide, Cake specialises in helping fashion brands understand their market online and then helps to develop appropriate strategical direction to achieve their plan, all backed by his 20 years of operating in the retail market.
