Tuesday, August 28, 2012

Closing the Loop: Red Flag Deals new Cashback program

There are very few consumer ecosystems that are able to provide closed loop environments.  Most websites aggregate content and refer traffic without completing transactions.   Amazon led the way with having a full service and has been able to offer a whole new level of customized buying experiences and tailored offers / recommendations for consumers.

Companies like Mountain Equipment Co-op have had the opportunity, but have never capitalized on it.  Now Red Flag Deals is offering it's own rewards program that appears to have similar merits of Amazon, and it's a brilliant move.

They are historically strong as a forum for people to share deals (almost 14,000,000 posts) and a way for service providers to promote offerings traffic was referred to host sites, but now they can complete the transaction.

Users need to register, buy from partner retailers and collect cash back on a quarterly basis.  The terms and conditions are straight forward - and the learning opportunity for retailers is immense as all aspects of the transaction will happen on their site.

They have always been able to track browsing behaviour and referral path, but now they will be understand the full consumer path to purchase
What led them to purchase?
If they didn't complete, what was the last item viewed before abandoning?
What other items were viewed?

This will also provide them with new services to companies looking to test products will increase their leverage with suppliers.

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