Slowly but surely, cashback is gaining popularity all around the world. If you’re feeling out of the loop, “cashback” refers to websites that reimburse a percentage of your online purchases. They, therefore, act as business facilitators for e-commerce sites. By forming partnerships with cashback sites, brands are guaranteed a steady stream of visitors that they can turn into customers. Linked to performance-based advertising, the underlying strategy is an attractive one, as some of the commercial pressure falls to the cashback sites themselves.
Trusted intermediaries to help establish your brand
Appearing on cashback sites is a good way for businesses to diversify their sales channels. These websites represent useful intermediaries for promoting brands and offers, especially when they are not well known to the general public. There are clear advantages in terms of confidence: not only do cashback sites build brand awareness, but they also help create strong relationships with your customers.
What’s more, they offer an opportunity to generate more backlinks and optimize your SEO using trusted websites. If you don’t exist on Google, you don’t exist online. Getting into cashback is a good way to boost your profile. Customer review shared content, and links to offers can all have a positive impact on your SEO strategy.
Finally, you can reach a new target audience: active buyers looking for good deals and new products. Cashback sites often have a very active online community who are likely to share your offers on digital platforms. A great way to communicate cheaply and increase the power of your brand.
Boost your conversion rate with cashback
If marketers are driven by a single obsession, it’s improving their conversion rate. This can lead to heavy investments in promotional activities with limited results. What sets cashback apart is the ability to control the exclusivity of the offers. Buying via a cashback site means taking advantage of an exclusive deal, and because everything is centralized in one place, it requires less effort to attract more customers.
Visitors interested in cashback understand the purchasing mechanics and are more likely to buy online than a regular visitor. Since this condition has already been met, you can improve your conversion rate for a small additional cost. The reimbursed portion of each purchase will not eat into your cash flow, and cashback will bring you new customers who would not necessarily be drawn to you organically.
Focus on exclusivity
In order for cashback to work, you must separate out your offers. By offering exclusive promotions via this channel, you can retain more potential buyers. This is a good opportunity to sell off surplus stock or your current range in anticipation of new products. You can also use the appeal of exclusivity to offer a reduced number of products via cashback and facilitate cross-selling. As well as boosting your average basket size, you are able to delegate some of the commercial pressure to the platforms themselves. This is the principle behind performance-based sales: if you sell, you earn a little less per unit, but you are selling in volume. Conversely, if you do not find a buyer, you have not lost any money from marketing investments.
Because the offer is presented by a third party service, the act of buying is not the same as a traditional purchase from a behavioral point of view. By acting as an intermediary, the cashback site creates a sense of trust for shoppers. Good deals are (supposed to be) filtered and approved, and the legitimacy of the brand is reinforced by the feeling of exclusivity. It’s the perfect way to diversify your online income.
Online sellers should not underestimate the potential benefits of selling on cashback sites. In terms of increasing awareness, selling inventory, boosting conversion rates, reaching new customers and promoting cross-selling, cashback offers many advantages at a negligible cost. Look into indirect channels to improve your online sales!