The Value of Cashback and Coupon Affiliates
Most of us have heard the news this week that PayPal is set to acquire browser extension Honey in a $4 billion deal. This news was likely surprising to some.
According to TechCrunch, “Honey has flown under the radar to some extent since its founding in 2012.” For those unfamiliar with Honey, it’s a browser extension that automatically searches and applies coupons to your shopping cart.
How does Honey compare to other coupon affiliates?
While Honey performs a little differently than most affiliates, they still rely on making a commission off using merchant’s coupon codes.
According to Gizmodo, “Honey alerts online shoppers to potential deals like coupon codes on products they are viewing, as well as offers comparative pricing, sales alerts, and price history charts in the hopes of letting users know when they’re getting ripped off.”
Many merchants are still resistant to working with coupon affiliates. Perhaps this deal is an example of the value of coupons when it comes to online shopping.
What are some benefits of working with cashback or coupon affiliates?
Benefits of working with coupon or toolbar affiliates include reducing shopping cart abandonment, and creating a smooth process to encourage more transactions.
In fact, according to the TechCrunch article, coupons can help reduce shopping cart abandonment: “Originally only a web browser extension, Honey tracks sales and retailers’ promo codes, as a rival to RetailMeNot and others. What makes the extension so useful is that it automatically tries all the eligible promo codes for you during checkout then selects the one that provided the most savings and applies it on your behalf. This helps shoppers feel more comfortable with their purchases and reduces shopping cart abandonment.”
An article from Wired confirms answers the question about why stores would offer commissions to let consumers purchase items at a discount. The answer? It’s “for the same reason they pay credit card companies and payment processors like PayPal: to make your experience as smooth as possible, and to do everything to prevent you from abandoning your shopping cart, even if that means offering you a lower price.”
Other benefits of working with coupon publishers
Merchants may be unaware of the benefits of working with coupon publishers. Earlier in this post, we shared how coupon affiliates can reduce shopping cart abandonment. However, there are several more reasons why some may want to reconsider their stance on not working with coupon publisher.
An article from Entrepreneur on shopping in India states, “Affiliate marketing led by cashback and coupons is a win-win situation for everyone involved. Online customers can save money on their purchases, while e-commerce companies can improve key metrics such as sales/transactions and user acquisition. Publishers can also monetise their online traffic, driving revenue growth and profitability.”
How to work with more coupon affiliates
If you’re a merchant looking to partner with more coupon affiliates, FMTC’s premium merchant services can help. We offer avenues to target publishers through spotlight posts, deal alerts, publisher outreach, and more. View our Merchant or OPM Services site pages or email [email protected] for more information.