Transcript Cashback Partnerships

Loyalty and incentive coming of age
Lee Griffin - Head of Publisher Services, TradeDoubler
Duncan Jennings - Managing Director, eConversions
Richard Yendall - Chairman, The Loyalty Association
Paul Nikkel - Co-Founder, Quidco
2
Users drive the market
Tough times, savvy users & partnerships
We’ve come a long way
Development, best practice &the future
Cashback Partnerships
Community, technology &promotions
Questions for the panel
3
Growth & Trends
Sales (£ m)
Growth
2007
£300
122%
2008
£720
140%
2009
£1,440
100%
4
£1,600
£1.4bn
£1,400
£1,200
£1,000
£800
£720m
£600
£400
£200
£0
£300m
£135m
2006
2007
2008
2009
5
Going mainstream?
Who Said This?
“We see cashback as an
important opportunity to deliver
additional value”
Bill Gates, Microsoft
“Loyalty schemes, vouchers and cashback
have become very important. It's an issue that
has to be addressed.“
Bruce Fair, Kelkoo UK MD
7
• October 2007 purchase Jellyfish (comparison/loyatly)
• May 2008 launches Live Search Cashback in the USA
• 10 million product offers, 700 merchants
“Cashback has done very well in the US and we
will be looking to roll it out in other markets;
the UK will be next”
Chris Dobson, Microsoft VP of global sales
Who’s next?
10
Myth-Busting... Loyalty is not the villain
Overwriting – Loyalty <1%, less than other categories
Starting point of the majority of attributed sales
Return visits are frequent - key to the impulse/browser?
Last click or contribution? Not an easy call...
11
Economy at 60-year low, says Darling.
And it will get worse
28th August 2008
Retail sales slump surpasses
1990s recession
28th August 2008
Boom is now bust after 16 yrs
23 August 2008
Inflation doubles in just six months as
millions of families face soaring food bills
13th August 2008
 Everyone is becoming more cautious with their money
 The web has always been known as the place to save
money
 Press, credit crunch, inflation & recession are taking this to
the next level
 In tough times people still spend but they need a nudge /
elbow
With the economy slowing and prices rising, everyone is on
the lookout for a bargain. Vouchers have become a popular
way of promoting discounts, particularly around Christmas
time. In fact, they have become so popular that price
sensitive shoppers are looking for them in increasing
numbers.
Robin Goad – Research Director Hitwise
Flexible – Advertisers can restrict codes by time, product, category etc
 Ramp up sales – “40% off!”
 Increase basket values – “Save £5 when you spend over £75”
 Clear distressed stock – “Get Water World for only £1”
 Push higher margin products “10% off Caribbean All Inclusive Holidays”
 Voucher Codes satisfy the deal hunting desire without killing your margin
 VoucherCodes.co.uk launched in “BETA” August 2008
 We’re building long term relationships with advertisers to promote only
valid, working codes
 Advertiser / Network login allowing instant code suspension and flagging
 Working with networks and merchants on technology for real exclusive
codes, customer targeting and more
If you’ve got a voucher code or deal you’d like us to promote or if you’d
like to find out more about how voucher codes could help grow your sales
contact me:
[email protected]
Tel: 020 7566 9849
“We’ve come a long way”
Richard Yendall
Chairman, The Loyalty Association
CEO Rpoints & Cashback Kings
21
Development of Loyalty
Growth
Innovation
Diversity
Publicity
“A new way to
make money”
Doing it well
Network and merchant buy-in
Make loyalty model work
Standards and best practice
The Loyalty Association
Where are we heading?
Diversification
Consolidation
Bigger
brands
Offline
Mobile
Combo sites
“Cashback Partnerships”
Paul Nikkel
Co-Founder, Quidco
25
Cashback Community
• Cashback has come of age and is now recognised as a
unique channel. The opportunities for merchants to engage with
members and attract them into their "community" (as customers) is
huge.
• Cashback is not monolithic
Many sites with their own branding, model and demographic.
Effectively managed relationships capitilize on community brand equity
but do not bleed equity.
• Cashback members have brand loyalty to their
community. Learn it to leverage it.
• Find and use the promotional tools
available in the community.
Email shots on Greasypalm, forums on Rpoints, Savvy Tips and
blog on Quidco. Talk to us and your account managers!
• Good communities are viral–good
cashback is viral.
The big cashback communities today have grown almost
entirely from WoM. Highly connected, highly influential
consumers.
Technical Enhancements
• Manual validation put in place for increased merchant
security and ability of validate off-line information
• Cookie checkers to ensure that cookies are being
accepted by the member’s browser at point of purchase,
resulting in fewer untracked sales and less work for merchants
• Enquiries XML data exchange, click-tracking and approval
process implemented to improve data integrity. Fast, accurate
resolution results in decreased manual resources needed from
merchants, decreased call-centre contact, increased purchase
confidence and satisfaction.
Promotional Activities
• Leveraging exposure for different needs
ie. Increase sales during seasonal peak or increase traffic
volume and brand/site awareness
• Case Study #1: HMV
Goal: Expose traffic to a newly branded site
Placements: Savvy Tips and Blog
Case Study #2: Merchant “X”
Case Study #3: TalkTalk
Case Study #4: Merchant “V”
Case Study #5: Hotels.com
Questions for the panel
Duncan Jennings - Managing Director, eConversions
Richard Yendall - Chairman, The Loyalty Association
Paul Nikkel - Co-Founder, Quidco
Lee Griffin - Head of Publisher Services, TradeDoubler
37