Cashback Sites
Cashback, reward, or loyalty sites, such as Quidco and TopCashback, are websites that offer people incentives by rewarding the customers for the purchase through refunding them part of their cash back. The rewards will vary from site to site, but typically include collecting points, cash-back, or even making charitable donations.
They use the commission awarded to them by an Advertiser and share a portion of this commission with their users in the form of cash, redeemable points or gift cards.
Cashback Publishers tend to be very profitable in terms of ROI and can drive high conversion rates, as they reach audiences that are highly engaged and are actively looking for the best deals. The main force behind a loyalty or reward site or program incentivises customers to return and make repeat purchases.
The best way to engage with Cashback sites is to offer an exclusive deal, increase CPA or take out tenancy to increase the exposure to optimise within their platform.
Points to Consider:
The incentive for customers to make a purchase
Increased AOV – especially for retail
Repeated purchases = customer retention (especially important in the age of savvy price-conscious consumers that are prone to switching). Customers may be loyal to the cashback site, rather than the brand, but as a result, they keep buying from the brand. Repeat purchases can also be driven by offering a higher cashback percentage on a second purchase, within a timeframe (increased order frequency)
High conversion rate – customers are likely to have carried out their research before going to a cashback site
The lifetime value of net profit
