Pay Per Revenue Marketing: Light a Fire under Sales, Customer Loyalty and ROI

Pay Per Revenue Marketing: Light a Fire under Sales, Customer Loyalty and ROI

To impress your clients right off the bat in the new year, why not run some online advertising campaigns that will inject new life into conversions, bolster existing customer loyalty and wildly improve ROI? Yes, we are talking about Pay Per Revenue marketing, also referred to as cashback advertising.

Here’s what happens in a nutshell. Businesses run ads that promise their customers cash back with a full-price purchase on certain promotional items. The ads drive customers to a site to buy. Businesses need only pay for the service if they make a sale. Businesses are happy, their customers are happy, and we make it happen.

Set Local Businesses Apart from Their Competition

Businesses that offer cashback rewards set themselves apart from their competition who are not making such offers. Many types of businesses may benefit. However, particularly good candidates include

• Businesses that get a big percentage of their sales during major holidays and sales promotions
• Services businesses such as beauty salons and food service businesses where small, repeating purchases are the norm

Pay Per Revenue marketing can generate a more stable income flow for such businesses. Sales and discounts may bring in sales in the short term, but a Pay Per Revenue model can increase profits long term.

Retain Brand Value that Discounting Erodes

The occasional sale can send a ripple of excitement across a local businesses customer base and bring in some cash. But when merchandise is discounted too often, it starts to lose value in the eyes of customers. And once a brand is devalued, sales start to slip and growth plummets.

Unlike discounting, Pay Per Revenue programs enable businesses to offer their customers increased value without devaluing their brand with constant discounts.

Reward Loyal, Returning Customers

If you are always offering discounts, you aren’t building customer loyalty. You are just making sales to people who will turn their backs on you as soon as a competitor offers a lower price.

Cashback promotions on the other hand, reward your existing customers for their loyalty rather than attracting those just looking for the next sale. This is particularly true if you offer increasing rewards on a tier system.

Encourage Larger Purchases

When a business develops a cashback program, it encourages customers to spend more money per transaction in order to receive a reward.  Cashback programs can further increase customer loyalty by offering spending level tiers.

This may work in a variety of ways, but one way is that a customer gets additional cash back if they spend a set amount over the course of a time period such as a calendar year.

Another possibility is increasing the cashback percentage based on the total cart size or the total amount of promotional items purchased.

Either way, unlike discounts, your Pay Per Revenue program will increase customer loyalty.  Customers are much more to shop with you if they know you offer attractive cashback promotions.

How Does Pay Per Revenue Marketing Work?

Pay Per Revenue advertising can work in various ways.

Cashback Sites

Cashback sites is one way to go. Cashback sites offer cashback promotions from various vendors often by way of a portal. Cashback sites advertise a brand’s product, and the brand company pays the cashback site a commission when the site sends a paying customer to the store’s website or brick and mortar location.

But you don’t need to rely on cashback sites for your Pay Per Revenue program. There is another way.

A Wide Variety of Websites and Networks

Rather than forcing customers to go to a cashback site, you can advertise cashback offers on a wide variety of websites and networks.

Here’s how Umbrella offers white label Pay Per Revenue services:

• Umbrella places local businesses cashback ads on hundreds of the most popular websites and apps.
• Their customer links the credit card they want to use to purchase goods eligible for cashback.
• A customer then makes a purchase either online or in-store with the linked card.
• Umbrella tracks the sales through partnerships with credit cards and publishers.
• The business can track all transactions via an online dashboard.
• The business collects 100% of the payment.
• The business pays Umbrella no more than 15% in total for cashback and a small commission. For example, if we generate $50,000 in sales for the business, we will not take more than $7500 for the entire campaign including the cashback we provide to the businesses customers.
• Umbrella pays the businesses customer the cashback.
• What this means is that Umbrella guarantees 500% ROI!

Umbrella’s Method is Completely Transparent

Umbrella will provide you with a dashboard where you can track online and offline sales. The business can see all the details of each transaction Umbrella’s Pay Per Revenue marketing service generates for them.

Could I Do It on My Own?

Could you run a Pay Per Revenue marketing program on your own? Theoretically, yes you could.

But there a are a lot of detailed moving parts that take time to set up. You would need to develop partnerships with major credit card companies as well as website publishers and networks. If your promotions are being run across national boundaries, the complexities increase.

We can help!

You don’t need to enact a Pay Per Revenue marketing program all on your own. Contact us for a free consultation to discuss how you can get an ROI of 500% using Pay Per Revenue services.

Setup your FREE consultation here

 

Brought to you by

Gisela Beckermann

Tel: (415) 275-3304 (leave a message)

Email: gisela@theartegroup.com

 

 

[Article by Deborah Kurfiss of the Umbrella team]