Check it Out: Wait 6 Weeks No More
If you purchased $350 worth of baby supplies last month, for example, you could be sent via email a $50 rebate offer from Babies"R"Us. Participating retailers pay a commission to Offermatic each time a consumer buys one of their discounted products. Merchants don't pay for leads or impressions. National brands including Wal-Mart, Best Buy, Gap, Amazon.com and Home Depot are participating Offermatic merchants.
Conversion Rates Improve
Merchants benefit because better targeting equates to better results. Offermatic's solution enables retailers to use permission-based targeting of consumers based on their purchase histories. Beta testing of Offermatic's platform with top retailers yielded a 14.5 percent conversion rate on its offers, a dramatic improvement over average conversion rates of .5 percent to 1 percent via other channels.
Offermatic's solution affords merchants the opportunity to use hypertargeting, improving conversion rates by 10 times to 100 times over existing online or offline targeting methods. And as a result of accurate targeting, participating retailers cut down on wasteful marketing spending. Those savings can then be shifted to the customer offer or deal.
My feelings on Offermatic's service are conflicted. From a consumer's perspective, I'm leery about handing over my credit information to a third-party provider of any kind. Sure, I like getting great deals, but at what risk? That's the tightrope that Offermatic is going to have to balance to be successful. Conversely, from a retailer's perspective, I see little to no risk involved. Yes, you pay a commission when a customer makes a purchase, but you may not have ever gotten your message in front of that customer without Offermatic's data. No customers come free these days, especially highly targeted ones.