We strive to make our service as easy, focused, flexible and cost effective as possible. We also strive to make it work for any sized distributor, from a single micro brewery to an international behemoth.
For each deal, you define your overall budget (along with who, when, where, what, how) and within that budget, you define your bid.
The bid is the cost you pay for each time your deal is offered. Initially, this bid is fixed to 5 cents, but you will be able to change that in the future. The bid is then used as one of the factors in recommending deals to consumers. Our goal is to maximize the redemption rate, so bid is certainly not the only factor. But a larger bid would likely mean the deal would be offered more (if consumers are interested in that product and fit the campaign goals).
The following things are applied to your budget:
- Bid – for each time your deal is offered to a consumer
- Reimbursement – for each validated transaction where a consumer used your deal, this amount is deducted from your budget and given to the store
- Reimbursement Fee – a small fee to cover the cost of validating transactions, making sure your dollars are going to selling your product
Let’s look at an example. Say you define an ACQUIRE campaign to get people trying your premium scotch, and give them a $5 off, with a 5 cent bid.
Over the course of a weekend, the deal was offered to 250 people. So at 5 cents each, that’s $12.50. If 30 people redeem your deal, that means $150 goes to the store. Then to validate that those 30 receipts are all valid will incur a small fee. To illustrate the process, let’s say that’s $3. So your total for the weekend would be $165.50 without any extra costs, fees or worries. And keep in mind that most of the cost was the deal you offered the consumer.
Compare that to the cost and time of offering a shelf sign with a coupon. The time to get the sign and coupons printed and arrange it with the store owner is certainly more – without even considering how you’re going to redeem those coupons or the reimbursement to the store.
Compare that to the cost and time of working out a deal with the store owner with the hope that their next order isn’t going to be lacking.
Your time to create an offer is negligible – you can do it while you’re waiting for the coffee to brew.
Taking care of validating receipts, reimbursing stores, etc. is all included – you don’t have to spend your valuable time on that – we have people to handle it.
But there is a time delay worth noting. When we offer your deal to a consumer who would be interested, we consider your budget. We do not instantly know if they have redeemed your deal. So we take a page from many other industries and manage your budget based on an expected redemption rate. We put that money aside for the store owner. This approach best manages your budget. We get as many deals out there as possible to sell your product within your budget constraints. However, depending on the deal, the redemption rate could be much higher or lower. With a higher than expected redemption rate, that could mean we go over your budget. You are responsible for covering the reimbursement cost to the store. With a lower than expected redemption rate, that means we can offer more deals (sell more) after we have validated reimbursements.
In cases where we sell more of your product than expected, you are responsible for the additional reimbursement cost (reimbursement to the store and reimbursement fee). Although it also means you’ve sold more product than expected – which is not a bad thing. Have you ever felt sorry for someone complaining that they’ve sold way more than they expected?