Marketer Interest in Card-​Linked Promotions to Increase

In the era of big-​data, there are few institutions that possess more information about what consumers are purchasing each month than cardbasedpromotionbanks who issue debit and credit cards. These institutions are now partnering with marketers who want to target consumers with discounts and promotions based on their past purchase history. New research from Cardlytics shows that marketers see a solid ROI and great promise in these types of promotions.

The results of the 2013 State of CLM (Card-​Linked Marketing) Study show that most marketers (87%) like card-​based targeted promotions. They are generating more revenue (43%), reaching loyal customers (49%), and can target new customers (41%). About ¾ of marketers say that this strategy  is so effective they may cut back on newspaper (30%) and TV advertising (24%). These types of promotions are likely to peak at the same time as other big ad campaigns take place – during Christmas (66%) and back-​to-​school (57%). Marketers in this survey believe that consumers will be more receptive to promotions involving specific products like groceries, gas/​convenience, restaurants and apparel.

When tapping consumer data from purchase history records, marketers want to know about the seasonality of purchases, frequency of purchases made at specific stores,  and where consumers go after they make certain purchases. Kasey Byrne, Senior Vice President of Marketing, Cardlytics, notes that the strength of this type of system demonstrates that “marketers can reach a targeted audience while providing consumers with the best deals for saving money.”

Some analysts worry that consumers may protest the use of purchase history as a way to target advertising but operators note that they are taking steps to protect private information.

Have you used a card-​linked promotion? How did it work out for you?

Kathy Crosett
Kathy is the Vice President of Research for SalesFuel. She holds a Masters in Business Administration from the University of Vermont and oversees a staff of researchers, writers and content providers for SalesFuel. Previously, she was co-​owner of several small businesses in the health care services sector.