Fondue, DTC’s First and Only CashBack Solution, is Now a Postscript Company
July 11, 2023
Reading Time: 3 minutes
Coupons are cool but, have you heard about CashBack? Postscript is deeply committed to the mission of making SMS the #1 revenue channel for Shopify merchants and is constantly innovating on ways to make that mission a reality. And we’ve got some exciting news on how we’re helping brands maximize revenue from SMS. We’re proud to announce our recent acquisition of Fondue!
Fondue CashBack allows merchants to incentivize purchases without taking the losses of traditional discounting strategies, increasing the efficiency ROI of their overall SMS strategy.
Fondue was one of our more widely anticipated integrations with Postscript over the past year and they have had rapid growth in the D2C market over the last 9 months. In that time they’ve brought on over 100 customers including —influential brands like Obvi, and True Classics. With that much traction so fast, it was an easy “yes” to bring Fondue into the Postscript family. We’re thrilled to welcome CEO and Co-founder Oren Charnoff, COO and Co-founder Abraham Lucey and CTO and Co-founder Will Herlands to the team.
“Postscript is a company with a similar customer base and has a similar obsession with the Welcome Series that we do,” says Charnoff. “They’re also an extremely focused company and their broader mission to make SMS the #1 revenue channel matches our broader vision to make CashBack the number one discount of choice.”
What Does Fondue Do?
Fondue replaces traditional coupon codes with a CashBack incentive. Traditional popups offer a 10% or 15% discount on a first-time purchase, but Fondue gives you the flexibility to offer 20%, 25% or even 30% CashBack in the form of a store gift card or Visa pre-paid card.
Fondue is the only smart coupon alternative that maximizes welcome series revenue, drives list growth across channels, and creates consistent repeat purchases by offering shoppers freedom of choice for their post-purchase incentives.
All merchants know the type of hit coupon codes can take. They’re hard to track, hard to measure and they train customers to always be on the lookout for a code floating around. And some brands give up to 30% of revenue towards those discounts.
Brands who replace traditional coupons with CashBack can earn a 31% increase to email/SMS subscriber list growth and a 37% increase in welcome series revenue.
When you install Fondue, you’ll A/B test every spot where you normally use coupons—from a popup offer to a welcome series automation—to see exactly what CashBack offer performs best. We love giving our customers more options to see what works best for their customers and their bottom line.
"Offering CashBack has a higher perceived value. We went from offering 15% discount to 25%-30% CashBack. As a customer, you feel like you’re getting more value out of it, says Ron Shah, CEO of Obvi. “When it comes to the backend and financial side, you’re giving so much value but you’re really adding back to your bottom line substantially. It’s very rare to see a win-win on both the customer and merchant side and this is the example of that."
Here’s How it Works
List growth is always top of mind for merchants, whether for SMS or for email. And as brands continue to look for ways to become more efficient and increase their profitability using these channels, a welcome series is clutch.
Here’s what the journey for a new customer looks like using Fondue. They’ll be prompted to sign up with their phone number and/or email address to receive the CashBack offer.
And once they’ve added an item to cart, they’ll see the CashBack applied there too.
And once a customer checks out, they’ll be able to easily click a link and choose their CashBack reward—whether in the form of a store gift card or a Visa pre-paid card. It’s that easy. We dive more into why this is so powerful here.
How Fondue’s CashBack works with Postscript’s SMS
Automations make some serious cash for our customers. Looking at Postscript data from the last 12 months, automations accounted for over $278M in attributed revenue. And Welcome Series are the top overall revenue earners within the automation category. Unlike campaigns, a Welcome Series automation can be a “set it and enjoy it”—especially when it’s using Fondue and Postscript together.
Let’s walk through how Fondue and CashBack fit with Postscript and SMS:
Acquisition. Use an A/B test on your popup for a traditional 10% off with a coupon code vs. 20% CashBack and see what kind of results you get. Most brands doing this are seeing an average of 31% lift in list growth.
Engagement. Once someone signs up, make sure to follow up with a Welcome Series automation, reminding them to use their CashBack before it expires via text. A Cashback leads to higher engagement of up to 35% increase in SMS click-through-rates.
Conversion. When using Fondue CashBack in a welcome series offer, merchants saw an average revenue increase of 37%. This can be done over SMS and email to drive them to purchase.
Retention. When customers select a store gift card for their CashBack option, they end up spending more than 2.5x the amount of the gift card—meaning they come back to purchase at least one more time—which is a huge retention win and leads to a 25% boost in customer lifetime value.
The combination of CashBack and SMS marketing is going to help Postscript customers make more money than anywhere else, but also make it more efficient.
We know that in the post-pandemic world, there’s challenges ahead for merchants, especially as we look towards BFCM. But there is nothing else on the market that can give you up to 5 points of contribution margin back on your P&L simply by turning it on. Plus, customers freaking love it. And earning extra cheddar is always a good thing.
Get in touch to give Fondue a whirl. We’ll give you 10% off your SMS marketing spend when you sign up for Fondue.
Senior Manager of Content and Community
Laura is the Senior Content Marketing Manager at Postscript. She has spent the past decade working in ecommerce. When she isn't writing about her favorite topic (marketing) or listening to podcasts about her other favorite topic (ecommerce), she's hanging out with her two sons on an island off the coast of Maine.