Some credit card companies have programs where retailers can offer special deals to customers who use their credit card to make the purchase. For example, last year, Twitter and American Express launched a program where retailers on Twitter could let people buy items from the special directly from Twitter. Card-linked marketing can also take the form deals offered to customers based on the purchase history with the card. Many business owners have shied away from such programs, but a new study suggests that customers like them and so should marketers.
The main issue with card-linked marketing programs are that they are often cumbersome for the retailer and the consumer to set up (though it’s very easy after the initial setup). Additionally, there’s the question of whether or consumers like it when card issuers use purchase data to deliver relevant ads to consumers through customers’ mobile and online banking applications. New data from Cardltyics and Haris Poll suggests that it’s worth the effort because a sizable portion of consumers like card-linked marketing campaigns.
Cardlytics commissioned Harris Poll to do a study of 2,000 consumer to see how they felt about card-linked deals and specials. The study showed a relatively positive sentiment when it comes to these kinds of programs and deals.
Nearly two out of three (64%) people surveyed said they believe card-linked marketing would be helpful to them. A little more than half (51%) suggested it would help them stretch their money a bit further. About one in three (32%) said card-linked marketing would give them new choices on where to shop. About the same amount (31%) said it would let them shop their favorite brands/retailers even more and give them the opportunity to make purchases they’ve been saving for.
“Very rarely do you get a majority of Americans saying they want any kind of marketing, but in the case of card-linked marketing, it is clearly a win-win-win,” said Kasey Byrne, Senior Marketing Advisor for Cardlytics in a blog post on the research. “Consumers see Card-Linked Marketing as a valuable service from their bank that helps them save on the things they buy every day. Retailers, restaurants and brands see Card-Linked Marketing as a new, highly effective digital media channel. Banks use Card-Linked Marketing to deliver improved customer engagement, loyalty, bank card usage and spending.”
Card-linked marketing can be very helpful to retailers trying to reach new customers around the holidays. According to the research, 83 percent of Americans who use online or mobile baking reveal that they would be likely to card-linked marketing during the holidays. More than half (55%) said they would use during the Christmas/Hannukah holiday season. Here are the results for the other holidays:
Vacation – 49%
Mother’s Day – 33%
Anniversaries – 30%
Family Outing – 27%
Valentine’s Day – 27%
Date Night – 25%
The study also has a lot of specific insights related to Mother’s Day that marketers may want to look at. For example, the researchers reported that three out of four (76 percent) people surveyed who used mobile banking apps and website said they would use a card-linked marketing offer they received for Mother’s Day.
As with any study produced by the industry it’s researching, this data has to be taken with a grain of salt. The research does make a compelling case for retailers to consider trying card-linked marketing during the holidays or some other high-sales period.
For more recent research on marketing tactics, read this article on why teens around the world love Instagram.