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The Future of Customer Rewards: Card Linked Offers

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Every customer likes receiving a discount at the till.

Not surprisingly, businesses like customer rewards programs as well – they can be a way to drive loyalty, get repeat business, and ultimately increase customer retention.

But there’s one problem: creating a quality loyalty program has been traditionally quite expensive, especially for brick-and-mortar businesses. After all, most companies do not have the clout to market a proprietary rewards app like Starbucks, so how can customer rewards be tackled more cost effectively in the digital era?

Introducing Card Linked Offers

Today’s infographic comes from Mobi724 and it explains the concept of card linked offers (CLOs), as well as the benefits they confer to consumers, retailers, and even payment processors.

The Future of Customer Rewards: Card Linked Offers

As brick-and-mortar businesses look to the potential of the smartphone economy to help retain customers and increase store traffic, card linked offers (CLOs) present an interesting opportunity.

Card linked offers are relevant, personalized, and easy to redeem. Further, they ultimately create a flawless and convenient experience that can help increase brand loyalty and customer satisfaction.

How Card Linked Offers Work

Card-linked offers (CLOs) are a card-linking technology enabling operators to link a special offer or coupon to a consumer’s debit or credit card.

  1. Retailers and/or banks target a consumer with relevant ads
  2. The closer the recommendations are to the consumer’s preferences and geolocation in real time, the higher the chances are for redemption
  3. Offers can be redeemed with usage of the linked payment card at point of sale (POS)

Combined with the effective use of proximity marketing, CLOs can help reach customers at the right place and at the right time. In return, operators see an increase card usage and spending at participating stores, while creating a unique opportunity to actively engage customers.

A Booming Market

In recent years, CLOs have become one of the most widely used online-to-offline (O2O) technologies.

Card linked offers are already a multi-billion dollar market, and a recent industry survey found that transactions are growing at a rapid pace. Impressively, 62% of CLO users that responded to the survey saw their transactions increase by 100% or more in the last year.

What else is driving growth in this expanding market?

1. A Shift to Cashless
The world is embracing a cashless economy, as the popularity and convenience of using cards and mobile payment apps increases. CLOs are poised to benefit from more cashless retail transactions, which are growing at 20% per year.

2. Changing Consumer Behavior
Research shows that having an immediately gratifying rewards experience is more important to consumers than the monetary savings they get in the process. This creates a positive feedback loop with every experience.

Gauging Success

Truly successful card-linked offers must reach consumers where they are, provide personalized offers, and enable O2O – an online-to-offline redemption experience – for the customer.

If used correctly, card-linked offers can transform massive cost burdens and a lack of efficiency into new incremental revenue streams, providing a seamless user experience for all parties.

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Markets

Charted: What are Retail Investors Interested in Buying in 2023?

What key themes and strategies are retail investors looking at for the rest of 2023? Preview: AI is a popular choice.

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A cropped bar chart showing the various options retail investors picked as part of their strategy for the second half of 2023.

Charted: Retail Investors’ Top Picks for 2023

U.S. retail investors, enticed by a brief pause in the interest rate cycle, came roaring back in the early summer. But what are their investment priorities for the second half of 2023?

We visualized the data from Public’s 2023 Retail Investor Report, which surveyed 1,005 retail investors on their platform, asking “which investment strategy or themes are you interested in as part of your overall investment strategy?”

Survey respondents ticked all the options that applied to them, thus their response percentages do not sum to 100%.

Where Are Retail Investors Putting Their Money?

By far the most popular strategy for retail investors is dividend investing with 50% of the respondents selecting it as something they’re interested in.

Dividends can help supplement incomes and come with tax benefits (especially for lower income investors or if the dividend is paid out into a tax-deferred account), and can be a popular choice during more inflationary times.

Investment StrategyPercent of Respondents
Dividend Investing50%
Artificial Intelligence36%
Total Stock Market Index36%
Renewable Energy33%
Big Tech31%
Treasuries (T-Bills)31%
Electric Vehicles 27%
Large Cap26%
Small Cap24%
Emerging Markets23%
Real Estate23%
Gold & Precious Metals23%
Mid Cap19%
Inflation Protection13%
Commodities12%

Meanwhile, the hype around AI hasn’t faded, with 36% of the respondents saying they’d be interested in investing in the theme—including juggernaut chipmaker Nvidia. This is tied for second place with Total Stock Market Index investing.

Treasury Bills (30%) represent the safety anchoring of the portfolio but the ongoing climate crisis is also on investors’ minds with Renewable Energy (33%) and EVs (27%) scoring fairly high on the interest list.

Commodities and Inflation-Protection stocks on the other hand have fallen out of favor.

Come on Barbie, Let’s Go Party…

Another interesting takeaway pulled from the survey is how conversations about prevailing companies—or the buzz around them—are influencing trades. The platform found that public investors in Mattel increased 6.6 times after the success of the ‘Barbie’ movie.

Bud Light also saw a 1.5x increase in retail investors, despite receiving negative attention from their fans after the company did a beer promotion campaign with trans influencer Dylan Mulvaney.

Given the origin story of a large chunk of American retail investors revolves around GameStop and AMC, these insights aren’t new, but they do reveal a persisting trend.

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