Secrets To Scaling Your Ecommerce Brand Ep 478: Coupon Codes Are Bankrupting Your DTC Brand - But There’s A Fix with Oren Charnoff, Fondue
Traditional discounts and coupon codes can be problematic for brands. Enter cashback offers, a game-changer for e-commerce. This new system allows shoppers to make full-price purchases and then claim a discount afterward, either in cash or store credit. Brands can discount more aggressively and still be profitable, while shoppers who choose store credit show they are not solely driven by price. This strategy adds margin and leads to a more frequent and profitable first purchase.
In this episode, Jordan West and Oren Charnoff, from Fondue uncover a new trend in cashback offers for shoppers and how it can be more profitable for retailers compared to traditional discounts.
Listen and learn in this episode!
Key takeaways from this episode:
- Pop-ups now offer cashback instead of just discounts
- Some shoppers don't claim the discount, while others choose between cash or site credit
- About three-quarters of shoppers claim nothing or take gift cards, which is more profitable
- Cashbacks prevent leakage or margin bleeding from coupon codes
- Cashback system more profitable for retailers
- Shoppers have 6 months to claim cashback, but most claim it within 11 minutes or 2 days
- Average liability period for cashback is around two weeks
- Coupon codes are problematic as the only way to offer discounts
- Shoppers connect with brands for reasons beyond price
- Cashback offers an alternative by allowing discounts after a full-price purchase
- Brands can discount more aggressively and still be profitable through cashback program
- Founder-led sales attract brands and contribute to success
- People care about people and like to contribute to their success
- Being a person can have a greater impact than being a company
- People follow individuals on social media, not necessarily companies.
Recommended App:
Fireflies
https://app.fireflies.ai/
Recommended Link:
Fondue
Postscript
Today’s Guest:
Oren Charnoff is Co-founder and CEO at Fondue, a Shopify app that is helping Ecommerce brands grow profitably. They work with the entire range of ecommerce from small DTC brands to publicly traded companies, and from electric scooters to astrology candles.Prior to starting Fondue, Oren was on the founding team at Hanaco Ventures - a now $1.5b venture fund investing in early and growth stage tech companies.
Connect and learn more about Oren and Fondue here:
Website: https://www.getfondue.com/
LinkedIn: https://www.linkedin.com/in/orencharnoff/
X: https://twitter.com/OCharnoff
Get 5 Offers for 2 Products (10 in total) along with 10 highly engaging tried and true creatives, 30 captivating headlines, descriptions, and ad texts sent to you for only $99. Go to https://www.upgrowthcommerce.com/offer and order now - this offer is only available for a limited time.