How Merchant-Funded Rewards Work

So, you have been tasked with increasing member benefits without increasing cost. That proposition sounds impossible to do, right? What if I told you that not only could you do that, but you could also turn a profit at the same time? Merchant-funded rewards might just be the way to reach your goal.

Added Benefits

Merchants are all fighting for their piece of the online shopping pie. The commissions merchants are willing to pay range anywhere from 1% to over 50%.

“Online shoppers in the United States will spend $327 billion in 2016, up 45% from $226 billion this year and 62% from $202 billion in 2011,” according to a projection released in February by Forrester Research Inc.

This commission is now a benefit to your members and a profit center for you. You have the ability to share the commission with your members in the form of points or cash back. The portion you share with your members is considered the added benefit, while any portion you keep can be used to fund the program or taken as profit.

Reach Your Key Demographics

There are over 4,500 retailers participating in these programs. Shops include the top 100 online merchants to small mom and pop shops. Whatever your customers are looking for, there is something for every member. You choose what you want to offer and the merchants you want to include to reach your membership demographics to create a one-of-a-kind experience.

With the amount of money that is being spent online everyday in America, it is easy to see how returning some of that money to your members is a benefit—and how earning some for your company can be a win-win.

For more information on how to create a merchant-funded rewards program or to schedule a demo, please contact Kyle Tidwell at 469-706-3318 or ktidwell@dbg.com.

DBG Loyalty is a leading innovator in loyalty and rewards marketing. DBG was founded in 2002 because the industry was looking for a trusted technology leader who could develop and establish consumer loyalty programs. DBG has customer relationships which span from the time of inception.