Arbitrage and Social Influence in Today's Digital Landscape with Swaypay’s Kaeya Majmundar
Today's influencer landscape is massive and reaches beyond Instagram. We caught up with Kaeya Majmundar, the cofounder of Swaypay, to learn more about how influencers can leverage unique cashback opportunities.
Arbitrage and Social Influence in Today's Digital Landscape with Swaypay’s Kaeya Majmundar
With Swaypay, everyone is an influencer. The fast-growing cashback app enables social media savvy shoppers to earn $$$ back on their purchases via TikTok posts.
The app lies at the intersection of fintech and social commerce. Swaypay rates a shopper's post based on performance and then issues cashback rewards; therefore, the percentage of savings is aligned with the shopper's degree of "sway" on TikTok. Users can even earn larger bounty rewards if their posts go viral. Partnering with brands such as Levi's, Urban Outfitters, and Dunkin, Swaypay is the easiest solution to TikTok marketing for everyone.
By helping brands funnel their marketing dollars from generalized marketing to a direct focus on social media savvy customers, Swaypay is positioned to forever change the relationship between brands and consumers. Consumers can be rewarded for their purchases, and brands can benefit from a more efficient and successful marketing strategy.
We caught up with Swaypay Cofounder Kaeya Majmundar to learn more about cashback incentives and the increasing relevance of social influencers.
Swaypay’s Origins: Aligning Incentives
Kaeya's personal experience launching and scaling a handful of DTC brands sparked the idea for Swaypay.
She realized that consumers have tremendous social capital. And, brands want to tap into that capital. But, the problem is there's no existing bridge between the two parties.
Thanks to Swaypay, consumers can now buy more of the products they love by doing what they already do—showing off their purchases on social media.
And on top of that, on the brand side, Swaypay unlocks a whole new way of targeted advertising. The app is extremely effective at attracting and retaining loyal customers. There are more than 10,000+ Swaypayers eager to earn cash back on their purchases.
“I knew there’d be tremendous value to unlock here if we could perfectly align both brand and shopper incentives. We’ve been obsessively architecting our product through that lens.”
Data-driven Growth Tactics
Swaypay's initiative to create the link between merchants and social media brings up unique conversations as it relates to social impact and engagement.
For every micro-influencer post, the platform sees an average number of 1,400 views, 55 likes, and 5 comments.
Plus, the Swaypay team actively tracks and records the quality of each post.
It’s not about how many followers a shopper has on TikTok; it’s about what kind of content the shopper is producing with the products.
The post’s likes, engagement rate, and comments are also analyzed by the team, along with the post’s performance in comparison to other Swaypayers.
In terms of the results, Swaypay sees a 13% lift in conversion rate, 10x cost savings (on CPM basis), and an average cost per post of $15.52.
On top of all that, if brands love what they're seeing, they can buy a Swaypayer's content and repurpose it as they please.
The Two Archetypes of Arbitrage
According to Kaeya, traditional ad spend will continue to grow, but brands won't rely on it.
With iOS regulations and third-party cookie tracking, consumers are now opting out of sharing for privacy reasons.
As a result, targeting and retargeting is now more expensive than ever before. Keeping that in mind, the emerging brands of today need to be testing out new tactics and creative channels (i.e. Swaypay).
In terms of the other kind of arbitrage—arbitraging talent—Kaeya says, "You have to be able to admit that everyone's talking about finding and hiring top-notch talent. Poaching people from Facebook doesn't always work. Sometimes those people aren't right for the job."
In tandem, not all companies are big enough to make the job a frothy opportunity or even bring equity into the conversation. So, founders need to go out and find overlooked talent that's still relatively underpriced for the current market.
They need to spot operators with potential and ambition and be ready to place big bets.
“To unlock arbitrage and new acquisition channels at scale, you need folks on your team who weren’t just trained in traditional marketing tactics.”
The Nexus of Fintech & Social Commerce
Kaeya's prediction for social commerce: the most frictionless and sticky products will be the crowned winners in the space.
More specifically, she sees the trend of embedding fintech and social into the same stack accelerating over the coming years.
Now, from a frictionless lens, payments can be integrated into a stack, making it super easy for consumers to transact and receive cash. And, from a stickiness lens, social has essentially become the central nervous system for almost every known consumer product out there.
When a consumer is on Instagram all day, it's not necessarily a choice they make. It's more a reflection of how the app was built paired with behavioral psychology.
Kaeya says, "The best form of loyalty is when you can't not use the product."
“Embedded fintech infrastructure reduces friction. Social drives stickiness. That’s a dangerous pair.”
- What to pledge
- How to improve
- Which tools will set you up for success
I think the most important thing brands can do in 2023 is to better manage their customer data—both ethically and effectively. There’s an opportunity for brands to know their customers better than ever before—a clear benefit for both the customer and the brand. When you manage your data correctly, you’ll create stronger and more personalized ads, creative, site experiences, and so much more.
This is a classic: Let the data guide you. Go where the buyers for your products are and communicate with them on a personal level (i.e. by persona and funnel position) and nurture those relationships (past, present, and future customers). It’s possible—all through data.
We recommend that Shopify brands analyze and update their websites using data-driven decisions. Using analytics tools such as heatmaps and scrollmaps can help brands better understand how customers are interacting with their store.
Store owners tend to make assumptions about the way customers interact with their website. Most never go back and analyze their design choices to find pain points or areas of opportunity. By using heatmaps and scrollmaps, they can see where real customers are clicking and concentrating their attention. Leveraging this data, brands can start to iterate on design and make their online store experience streamlined and intuitive.
Hotjar provides a simple way to implement heatmaps, scrollmaps, and recorded user sessions on your site, helping you acquire incredibly informative user data. Additionally, it gives you the ability to create on-site surveys, which allows you to obtain direct and often critical feedback from users about their experience.
Test various attribution models and analyze the impact on your business. At Fifty Six, we are always here to help our clients identify and optimize their approach—a critical step in any successful marketing strategy.
If I’ve said it once, I’ve said it a million times–Customer Lifetime Value. And even more importantly, Future Lifetime Value (FLTV). With the ever-growing importance of first-party data, it is crucial that brands take a good look at their CRM and FLTV metrics.
OrderlyEmails is our go-to tool for transactional emails. It helps us level up our brands’ email aesthetics with customizable, quick-to-implement Shopify templates.
Lately, I’ve been really interested in Smile.io’s loyalty platform. Their UX is fantastic for teams with low bandwidth!
Stop allocating budgets to low-hanging fruit that doesn’t move the needle on conversion. Think about what’s really going to improve your CX and the return of undertaking different initiatives—not just on what’s top on your list of bugbears on the site!
One of the best ways to understand your customer behavior is by using HotJar. Their heat-mapping and screen recording tools shine a light on where customers are navigating to and from on your site, where they're rage clicking and experiencing frustration, and where conversion is dropping off within real life customer journeys and flows!
Understanding your customers’ pain points via data and analytics , will allow you to work with your CRO/CX Agency to solve customer frustrations and improve conversion.
Rewind backs up all product, customer, and order data for Shopify sites—essential since Shopify itself doesn’t provide this solution. It's saved so many of our clients time and money from administrative accidents.
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33% of customer service inquiries are pre-sale questions. What does this mean? If you’re not investing in customer service, you’re missing out on revenue-generating opportunities.
The benefits of elevating your customer experience:
- 10% to 25% increase in AOV for customers who engage with live chat pre-purchase
- 21x higher conversion rate for customers who reach out via Live Chat or SMS compared to other site visitors
- 87% of customers who have a great customer experience will make another purchase
- 72% of customers share positive experiences with 6 or more individuals
Gorgias is our favorite Helpdesk platform. They can reduce costs by 35%, primarily by decreasing the average ticket handle time. Their machine learning algorithms are trained on millions of ecommerce-related interactions across Gorgias’ customer base and provide accurate, automated replies for the most common ecommerce inquiries. This helps our agents resolve tickets faster, which provides the customer a seamless experience.
Trust your agency! Agencies do the same things across multiple brands and niches, so we see the trends and have the practice and experience!
Don't be afraid of data and insights. If customers aren't clicking on your emails, try a new CTA. If your ads are driving good metrics at a small spend, start scaling. If your customers are complaining about a product, look into QA! If the data tells you something isn't working, let it go and try something else!
I'm supposed to say Tydo, right? 😉
Double down on differentiation. There will be a lot of headwinds this year and standing out from the crowd will set you apart.
A picture is worth 1,000 words. A video? Probably millions. In ecommerce that value translates into engagement, acquisition, and retention—everything you need to impact your bottom line.
At soona, we've seen the we've seen the impact of creative and the continuous split testing of it yield results. Our resolution is to challenge ourselves and double down on innovation and creative optionality so that each brand we work with can distinguish themselves in a crowded sea of D2C ecomm. We'd love to see our brands share this resolution and keep pushing the creative limits.
Klaviyo. We're using it to power our email and newsletter at soona too!
Optimize your returns strategy! This can lead to valuable customer insights, enhanced user experiences, and increased revenue and customer loyalty.
Brands need to dive deeper into understanding their customers to set themselves up for success. Conduct research to gain insights into customer needs, preferences, and behaviors. By doing so, you can develop targeted strategies that will enhance customer experience and boost overall retention.
Right now I would say Gorgias. Having a good customer service tool is crucial to building strong customer relationships.
Start paying heavy attention to data, specifically around retention. We see a lot of effort put towards acquisition with the assumption that once someone buys, they are your customer forever. Instead, get to know your customer, understand their needs, and analyze their behaviors once they are on-site and judge their sentiment after they have visited. Work with a retention focused and data-driven agency to implement tools that contribute to repeat business and customer delight. It will pay dividends.
When surveyed, about 80% of ecommerce merchants think that they are delivering a great experience to their customers. However, when the same customers are surveyed, only 8% of those customers think that they are getting a great experience from the merchant. Now, more than ever, retaining loyal customers is an essential part of any online business and you should spend time with your customers to judge their experience with your website and products and offer improvements based on that feedback.
Tydo's report cards are an essential tool, along with Klaviyo for email and SMS, Recharge for subscriptions and memberships, Okendo for reviews and surveys, Rebuy for AI driven collections and upsells, Loop for self service returns... each tool is great on their own, but their strength as the ultimate tool comes from when they are used together!
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Report Cards is a customized glimpse into your business, delivered to your inbox for free.
Report Cards consolidates all your key metrics across platforms for an at-a-glance pulse of your business.
Discover metrics for every team member so they can stay updated with the right data on a daily, weekly and monthly basis.
It's free because we believe everyone should have access to the basics.
Portfolio is a hub for analytics across multiple Shopify stores. The perfect tool for agencies.
See an aggregate view of all your data for all your stores in one place.
Make real time assessments on marketing initiatives across every storefront you manage.
Analyze the performance of one store versus another in seconds.
More about the project
Here at Tydo, we try to highlight DTC founders who run their business in various ways. And, that's because there's no "right" way to run a DTC brand.
This project illustrates exactly that. Whether it's how a founder supports their team or how they talk about mental health in the workplace, every founder has a different approach. How do they discover these different approaches? One way: reading. Discover the greatest books that have changed the way 15+ founders think about or operate their business.
You can also listen to these book picks on Spotify or Anchor.fm.