1. Managing Cashback and
Reward Sites Effectively

2. Agenda
• Cashback Overview
• Reward Overview
• Cashback Case Study
• Reward Case Study
• Questions and Answers

3. James Little
Head of Affiliate Development
James.Little@AffiliateFuture.co.uk

4. Back to Basics: What is Cashback?
Cashback sites Reward their Users with money
for buying from or registering with merchants.
1) Customer visits Cashback site
2) Customer sent to Merchant site
Customer buys
from Merchant
Cashback site receives
commission and pays
to Customer

5. More big brands getting involved
White labels Cashback providers provide an easy way for big brands to get involved

6. Cashback Site Popularity
Recession Proof? Sales and Clicks show no sign of slowing
down, despite current financial climate..

7. Understanding Cashback Sites
• All Cashback sites are different
• What the recession means to cashback
• Missed transactions
• Rebate engines
• Make sure you keep the users

8. Merchants: The Pros and Cons
Pros Cons
• Takes up your time
• High volume of traffic
– Need to constantly monitor for
• Able to drive lots of abuse
– Processing missed transactions
transactions
• Quality of the users
• Online Savvy – Do they really want the product?
• Price Savvy – Cashback customers often stay
Cashback customers
• Incremental sales vs. • Concerns over cannibalisation of
Competitors sales, rather than incremental
sales
• High conversion – helps
• Customer calls & negative
‘seal the deal’ feedback – no Cashback received

9. Merchants: Working with Cashback
• Seasonality Rates
• Importance of Competitive Pricing
• You can provide..
• Voucher Codes
• Offers
• Content (Email Creative?)
• Competitions / Prizes
• Set different policies and rates

10. The Future of Cashback
• More sites & Major Players
• Some consolidation / sell-outs
• Evolution – More product led offers?
• Better Protection for merchants
• More incremental sales, less cannibalisation
• Closer relationship with merchants

11. Kevin Edwards
Strategy Director,
kevin.edwards@affiliatewindow.com

12. Loyalty & Reward sites
• Long standing brand equity
• Offer sophisticated sites and loyal users
• Different mindset to cashback
• Different demographic to cashback
• Data collection; user segmentation
• ‘Value add’ competitions, engaged content etc.

13. Loyalty & Reward sites
• Selective partnerships
• Can offer multi-channel coverage, including
direct mail opportunities
• Minor commission tweaks disproportionately
raise perception of a promotion’s added value
• Annual marketing calendar provides affinity
opportunities

14. Example Airmiles statement

15. Airmiles statement sales uplift
Minor
commission
increase saw
sales more than
double for
‘double Airmiles’
promotion
compared to
normal earn rate
periods
1st Normal Earn 2nd Normal Earn Double Airmiles
Rate Period rate Period

16. Loyalty – The Future
• More brands entering space
• Greater transparency on traffic value
• Blurring the boundaries
• Enhanced content, destination sites
• Cross borders

17. Mike Tomkins
Co-Founder, Top CashBack
Miket@topcashback.co.uk

18. About Top Cashback
• 100% Cashback model
• No admin fees - free to use as a member or merchant
• Almost 2,000 listed merchants
• Amongst the largest member bases of UK cashback websites
• Extra Incentives
• ‘Fair Play’ policy
• Significant promotional platform

19. Member Testimonial
“Top CashBack is my first port of call when making any on-line
purchase, from Ebay to energy, insurance to interiors.”
“I got a great cashback deal on my Prudential car
insurance, making it by far the most competitive quote for a very
comprehensive policy. I even got free breakdown cover!”
“The no-fees approach works really well for me and I will continue
to use and recommend TopCashBack.”
Louise
Top Cashback Member
West Yorkshire

20. Case Study
Merchant Promotion Period
Clicks/Sales
End
Start
Time

21. Merchant Testimonial
“Top CashBack have been an excellent partner to IWOOT
generating both incremental revenue and returning customers.”
“They actively liaise with us to promote our latest offers while
keeping focus on the customer, helping actively when dealing
with queries and requests.”
“Top marks to Top CashBack!”
Julian Moskov
Online Marketing Manager
I Want One Of Those.com

22. Maureen McDonagh
Head – Nectar Extra
m.mcdonagh@loyalty.co.uk

23. Nectar is the UK’s largest loyalty programme with over 50% of UK households
16 major Points Issuing Partners Collectors Over 30 Rewards Suppliers
12 month active UK
Households
Database
Plus over 280 online retailers on eStores
including:

24. More effective marketing at lower cost
Points Update Mailings Nectar.com Email
26M+ per annum / 9M variants
½ billion personalised offers 200M+ sent per annum
Open rates around 95%
Coalition mailings Sponsor channels Collector surveys
1.5M detailed surveys
30% response rates

25. Nectar eStores growth
• Launched in October 2005
• Over 280 retailers on eStores
• Amazon’s only UK reward partner
• Continual Multi-Variant Testing
• Improve dataset within the Comparison Shopping Engine
• Increased ATF from 2.8 to 5.9 in the last 4 months
• Launch of Twitter in February
• Excellent customer feedback
“eStores is a fantastic way of collecting points”
“Nectar eStores is something which gives Nectar the
edge over other loyalty cards”
Source: Nectar monthly focus group – female aged 18 - 24

26. 0
1000
2000
3000
4000
5000
6000
12/10/2007
26/10/2007
09/11/2007
23/11/2007
07/12/2007
21/12/2007
04/01/2008
18/01/2008
01/02/2008
15/02/2008
29/02/2008
14/03/2008
28/03/2008
Nectar eStores - Daily order volumes
11/04/2008
25/04/2008
09/05/2008
23/05/2008
06/06/2008
20/06/2008
Impact of triple points promotions on retailer A’s units sales

27. Case study
• Financial value of 7 x investment driven by:
– Over 16% of customers shopping at
Play.com via Nectar eStores were acquired
by Nectar eStores
– Incremental growth in shopping frequency
of 3.2%
– Incremental retention of 33%
– Incremental ATV
• Total media value of Nectar
communications valued at more than 4x
total investment in Nectar eStores QUOTATION FROM PLAY.COM:
:
“Nectar is a key partner for us
• Over 80% of total Nectar eStores within our affiliate network. Nectar
investment given back to Play.com eStores provides a shopping
customers in Nectar rewards programme that is greatly valued by
our customers, allowing them to
• Total financial, brand and customer value benefit from both an ongoing
loyalty reward and great deals at
to Play.com worth almost 7x the total
Play.com”
investment

28. Promotional opportunities DM examples:
• Participate in a double / triple
points campaign proven to lift sales
• Display media opportunities
• 12 month email calendar
• Constantly refreshed offers –
voucher codes/deal of the day Email examples:
• Solus page per retailer to display
bespoke content and offers
• Sponsorship of a category page
• CPA based shopping comparison
engine
• Cross promotional opportunities

29. Any Questions?