Brands will be able to target promotions at different consumers for the first time using online supermarket comparison site MySupermarket.
The website’s new cashback programme will offer customers money back on specific products. But unlike with supermarket promotions, brand owners will now be able to decide how much cashback to offer customers. They will also be able to vary the amount according to brand loyalty and between retailers.
“Some brands might be running a promotion in Tesco and not want a double whammy,” said business development VP James Foord. “And if someone is incredibly loyal to a particular brand, we wouldn’t need to show them that cashback.”
Running different levels of cashback simultaneously would also allow brands to test what amount prompted customers to switch brands, Foord added. “You get to the point where you can work out that sweet spot of maximum effectiveness for minimum spend,” he said. “There are some products where you can gain just as much profitability on a small cashback as a bogof. This is a fairly safe environment to test out all these theories on promotional strategies.”
Earlier this year, MySupermarket launched ‘brand stores’ on its site, allowing brand owners to showcase a complete range in one place.
“This enables brands to have a direct relationship with the consumer,” Foord said. “At the store level they can’t pick out target markets as easily as they can online.”