In this episode, I have Oren (co-founder & CEO at Fondue) as my special guest, and we're diving into the world of coupons, discount codes, and cash-back offers in the realm of e-commerce. But here's the catch: Oren is here to introduce a new and improved way of approaching these promotions. We start off by acknowledging that while discounts can be effective, they don't necessarily work for every shopper. That's where cashback comes into play, and Fondue, a company that supports brands on Shopify, is leading the charge in this discussion. Specifically, we focus on the direct-to-consumer (DtoC) approach and the prevalence of brands resorting to discounts as part of their strategies. It becomes apparent that certain platforms and contexts lend themselves better to discounting, yielding higher conversion rates compared to non-discounted approaches. To provide clarity, imagine having a Shopify storefront equipped with a mechanism designed to capture customer emails, offering them discounts of 10% or 20% off for their first or returning orders. Now, while this is already a valuable feature, there's an even greater option available. By integrating the Fondue app, you can conduct an A/B test to measure the impact of offering discount codes versus cash-back offers. This means splitting your customer base in half, with one group receiving the discount code and the other group receiving the cash-back offer. The beauty of it is that Fondue allows you to easily edit the pop-up message for the A/B test. Tune in to this episode as Oren unveils this innovative alternative to traditional discounting strategies, offering a fresh perspective on how to optimize conversions and enhance the overall shopping experience for your customers
[00:00 - 04:36] The Concept of Cashback as a Coupon Code Alternative
[04:36 - 11:03] The Mechanics of Cashback and its Implementation
The Origin Story of Fondue
[11:03 - 20:00] The Impact of Cashback on Customer Behavior
[20:00 - 25:28] The Benefits of Cashback over Discounting
Connect with Oren!
LinkedIn: https://www.linkedin.com/in/orencharnoff/?originalSubdomain=il
Let's get connected!
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