Webinar Recap: The SMS Files—Decoding CashBack's Revenue Growth Secrets
July 27, 2023
Reading Time: 5 minutes
We just wrapped our very first CashBack webinar and if you didn’t get to attend you might be wondering—what exactly is Fondue? They are on a mission to help merchants make more money, more efficiently. CashBack helps brands grow their email and SMS list sizes by over 30%, increase welcome series revenue by almost 40%, and increase contribution margin up to 5%.
We’ve been launching a lot of new things here at Postscript. We just launched our second product—SMS Sales—back in May, and now we’ve acquired Fondue. What this momentum is really about is bringing you more value and more ways to make money as efficiently as possible.
Watch the full recap below!
What We’ve Been Up To at Postscript [5:15]
With SMS marketing you can grow your SMS list and deliver relevant campaigns and automations that help you sell more stuff. We see brands drive a 34x ROI with our Postscript marketing product.
Next up is SMS Sales, where we pair expertly trained sales associates with best in class software to improve your SMS conversions by over 30%. And with SMS Sales we’re seeing GMV increases in the range of 5%-20%, which is a huge boost from a product that’s still in its early days!
Then there’s our Postscript Plus Team, who are our local textperts who work with you hand in hand to run and optimize your SMS program. We see shops realize up to 250% revenue growth when working with the Plus team.
And of course, the reason we’re here today is Fondue, our new CashBack solution. Brands who use CashBack typically see 20%-40% revenue increase on their welcome series and add up to 5% of contribution margins to their bottom line.
Add all this up together and that’s a pretty powerful picture.
The macro environment has gotten hard and you’ve told us you need to be thinking not just about top line revenue growth, but margins, efficiencies, and running a smart business.
Not only have we heard that from you but, we read through Shopify’s 2023 eCommerce trends report. What they found was that 73% of Shopify Plus brands reported their cash flow is constrained. That’s 3 out of every 4 shops feeling the macro pressures around cash flow and margins.
Because Fondue is the only solution out there that allows brands on Shopify to grow sales and increase margins by replacing traditional coupons with CashBack offers. For Postscript, this acquisition presented an amazing opportunity for us to give merchants another tool in a very challenging macroeconomic climate.
A Deep Dive into Fondue [10:00]
At Fondue, we want to replace all coupons with Cashback. We just don’t think they make sense financially for brands. But we do want to respect the fact that coupons do work for some brands and have for a long time.
So why CashBack? It’s effortless for merchants, effortless for the customer and all of these things mean the same thing to brands: trading profit for revenue.
We jumped into the market and one of the first things we noticed is that brands have become so conditioned to expect discounts as just the cost of doing business, they have lost sight of just how much money they’re losing.
Listen, discounts are great. But for the vast majority of DTC shops, people buy for brand affinity reasons and not price. A shopper doesn’t buy an $80 scented candle due to the 10% discount they can ge when they could buy a similar candle for $8 on amazon. They buy because they love your brand.
By over-using coupon codes, brands end up wasting money on shoppers who didn’t need it and don’t give enough to those who truly need it.
Why CashBack Works [13:50]
Let’s look at why this is so impactful to your business. CashBack can:
Redeem as cash
Redeem as gift card
Never be redeemed
Be more money for the merchant to reinvest to make bigger offers!
CashBack over coupons. Coupons are cool and all, but with Cashback, you get to give your customers double the incentive. You’ll see a 31% increase in SMS list growth rate—and actually a 34% in email list growth rate!
You’ll see on average a 37% bump is welcome series revenue and a staggering 5% increase in contribution gains!
While Fondue can do a lot with SMS and Postscript, our CashBack is capable of working with many more platforms and channels. Some of our top customers are on brands like Klaviyo and Attentive, and most merchants are using Cashback within email welcome series along with SMS welcome series.
Why We Start with the Welcome Series [23:00]
Let’s take a look at what it would look like to tactically get that welcome series up and running with a CashBack offer. Here’s an example of a merchant A/B testing period.
Live Demo [28:00]
Here’s what we can see as CashBack best practices.
Make the first version of your A/B test as similar to your existing welcome series as possible
Discount more aggressively
Test email & SMS at the same time. It should be a full funnel test
Let us build it for you, we’re the experts
There is a point of diminishing returns- identify when to stop A/B testing
Make the site credit offer more attractive than the prepaid Visa card offer
Obvi Case Study [33:00]
We’ve heard a lot of theory, and now we’re going to see it in practice.
The founders at Obvi, Ron and Ash, were wondering how they could continue to be competitive in an industry that’s offering huge discounts. They didn’t want to stop offering incentives because they didn’t want it to hurt their conversion rates nor their leads they were gathering via popups.
So they gave CashBack a try and saw incredible results. One of the only places Obvi is still offering discounts is with a buy more, save more landing page. They use CashBack just about everywhere else including their popup and welcome series.
Special Offer for the Community [36:00]
If you’re currently a Postscript customer and you add Fondue to your SMS Revenue Platform with Postscript, you’ll get 10% off your minimum spend for each month you have a cashback offer live in your welcome series.
That means if your minimum commitment on Postscript is $2,000 and you add Fondue’s CashBack, you’ll get $200 off your spend each month for the duration of your contract.
If you’re not a Postscript customer today, you can get in on this action as well by signing on with us and Fondue.
Live Q+A [37:00]
Hear what some of our attendees wanted to learn more about during our live question and answer section with Oren and Beller.
Thanks for joining us. And don't sleep on giving CashBack a try for rocket speed list growth for your SMS program.