consumers can sign up and become members for free. When they visit an online store through the cash back organization, they receive a discount on the products they buy.

1. How cash back systems can increase
conversion and lower marketing costs

2. What is cash back?
• consumers can sign up and become members for
free. When they visit an online store through the
cash back organization, they receive a discount
on the products they buy.
• What makes this process so appealing for
consumers is the fact that they get a discount on
all of their purchases, including products that are
already discounted. Other than a one-time sign-
up at Refunder, they don’t have to do anything
else.

3. Snowball effect:
• The more companies join in, the more
appealing the system becomes for consumers.
And the more consumers who sign up, the
more appealing we become for retailers. Once
you reach a certain size, the effects just keep
snowballing until they turn into a veritable
avalanche. The system grows automatically
because these two principles reinforce each
other.

4. Low marketing costs:
• The average marketing costs of Nelly Fashion
amount to 17 euros per purchase. The majority of
this amount goes to Google Adwords. An order
coming in through Refunder only costs them 6
euros. “The customers coming in through Google
Adwords cost money for Nelly Fashion. The only
reason they continue using it is because they
hope those customers will visit the site directly in
the future. The order they get through us actually
make them money,” says Dahlborg.

5. Brand building:
• In building a brand, Dahlborg has gained a lot
of experience that he could apply to his new
company. The pillars of said company are
campaigns with people who work at Refunder,
encouraging and provoking reviews, and
utilizing bloggers.

6. The benefits of cash back for online retailers:
• the average order value of cash back shoppers
is higher than that of other customers
• the percentage of returns is lower
• because of these three points, cash back
platforms make for very cheap marketing tools
• discounts are relatively low, thus preventing
brand erosion