How cash back systems can increase conversion and

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How cash back systems can increase conversion and
lower marketing costs
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What is cash back?

• consumers can sign up and become members for
  free. When they visit an online store through the
  cash back organization, they receive a discount
  on the products they buy.
• What makes this process so appealing for
  consumers is the fact that they get a discount on
  all of their purchases, including products that
  are already discounted. Other than a one-time
  sign-up at Refunder, they dont have to do
  anything else.

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Snowball effect

• The more companies join in, the more appealing
  the system becomes for consumers. And the more
  consumers who sign up, the more appealing we
  become for retailers. Once you reach a certain
  size, the effects just keep snowballing until
  they turn into a veritable avalanche. The system
  grows automatically because these two principles
  reinforce each other.

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Low marketing costs

• The average marketing costs of Nelly Fashion
  amount to 17 euros per purchase. The majority of
  this amount goes to Google Adwords. An order
  coming in through Refunder only costs them 6
  euros. The customers coming in through Google
  Adwords cost money for Nelly Fashion. The only
  reason they continue using it is because they
  hope those customers will visit the site directly
  in the future. The order they get through us
  actually make them money, says Dahlborg.

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Brand building

• In building a brand, Dahlborg has gained a lot of
  experience that he could apply to his new
  company. The pillars of said company are
  campaigns with people who work at Refunder,
  encouraging and provoking reviews, and utilizing
  bloggers.

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The benefits of cash back for online retailers

• the average order value of cash back shoppers is
  higher than that of other customers
• the percentage of returns is lower
• because of these three points, cash back
  platforms make for very cheap marketing tools
• discounts are relatively low, thus preventing
  brand erosion

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