The cash-back incentive, called SpringBack, seems to be the first of its kind for multibrand, single-cart e-commerce sites. Spring began operations in 2014 with 150 brands. According to Katie Tobias, head of brand marketing, the company offers more than 2,000 brands. Essentially Spring acts as the host site for the brands. Spring handles the transactions, but the brands handle the fulfillment of orders.
According to Tobias, new offerings that became available in the fourth quarter include Alexander McQueen, Bobbi Brown and What Comes Around Goes Around. COS was added in the current first quarter.
Spring averaged more than one million monthly unique visitors in 2017. Sixty percent of the average daily visitors are repeat customers, while 40 percent of Spring’s domestic customers make another purchase within 90 days of a prior purchase.
Tobias acknowledged that the 4 percent cash back comes out of Spring’s profits from each order. She said the company chose to do the added-value program for its largely Millennial customer base because it provides “everyday transparent value” in lieu of relying on deep promotions to get her to shop.
“The 4 percent cash back is earned on every single purchase [and shows up as] pending cash on her account. After 60 days, it becomes available for her to claim,” Tobias said. She said 60 days was about the average time when returns are made “based on the typical behavior of our customer.”
Partner brands seem to like Spring’s ability to reach the younger consumer. Delphine Buchotte, chief marketing officer at Diane von Furstenberg, said, “Spring has proven to be a great partner to reach a younger customer.” And Annie Jou, director of North American E-commerce at Bobbi Brown, said, “Spring has consistently provided us with levers to bring our brand to the Millennial shopper on her terms — on her mobile device, with a personalized experience, and now with flexible rewards so she can spend however she likes.”