Marketing with cashback sites is becoming more popular than ever in the insurance industry. If you have not yet experimented with this form of marketing, you may be unsure how to get started and how to make the most of it.
Here are some ideas to get you started so that you too can take advantage of all of the potential benefits.
Overview of cashback
Cashback marketing is a way of providing customers with discounts to tempt them to buy your insurance products. It involves a cashback website (such as TopCashback or Quidco) signing up to your affiliate programme, and customers will then visit the website and click through to your site.
If the customer makes a purchase, the cashback site earns a commission on the sale. This commission is then passed onto customer as a cashback bonus.
Some sites give customers all the money back that they make on the commission, and others give a portion of it. Customers therefore get to enjoy a discount and the cashback company gets access to useful data on customers’ shopping habits.
Effective marketing technique for insurers
Using cashback sites can be a very effective marketing technique for insurance businesses. This is because there is not a great deal of product differentiation in the market, and using a cashback site can help you to stand out and provide you with an advantage over your competition.
Do your sums
When starting out with this form of marketing, it is important to work out your sums carefully so that you know how much you are prepared to give away. You do not want to go giving away huge amounts of commission if you cannot afford it, but you do want to make the cashback offer attractive, so it is all about finding the right balance.
Benefits of cashback
The main benefit about using cashback to market your insurance products is that these websites are very popular with consumers. After all, everyone loves a discount, and if you can encourage more people to buy your products then it could be well worth the discount that you provide on each sale.
Be careful about devaluing your brand
One possible negative of cashback is that it is could be seen to devalue your brand. One way to make this work, is to only use it strategically at certain times of the year and choose one partner to work with at different times. In this way you are managing your brand so it is not the first place customers look for your products.
Give it a test run
The only way to know for sure whether this type of marketing works for you is to try it out. Give it a go for a period of time, perhaps a few weeks or months, and then review how it has gone.
Did it lead to more business? If so, was it worth the extra business even with the discounts? Once you can answer these questions you will know whether it is a long-term marketing tactic for your business.
A word of caution
From experience we have also found that with insurance products offers it might be prudent to delay cashback payment on monthly premium activity as this is a potential area of fraud, where a customer simply buys a product on a monthly direct debit basis but gets a larger commission in month 1, then cancels the product.
In this case it might be worth making it clear that cashback is paid in month 3. We are not saying the cashback sites are a bed of fraudulent activity, it can and does happen.
That being said, cashback marketing can still be a great way to drive traffic and sales as long as you know ahead of time what the potential risks are and mitigate them as much as possible.
Experiment cashback for your business
Marketing using cashback sites may be effective for your business, the best way to find out is to test, but do ensure your calculations are correct first.
If you want to experiment with cashback as a way to market your business, give it a go and see what happens, then you will be able to work out how successful it can be for your business.