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.”
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