The card-linked offer is a new type of shopping deal linked to the credit and debit cards shoppers already use and value. Because offers are linked to cards, merchants can use anonymous transaction data to target the right customer segments and enjoy true incremental sales analytics. And, unlike Daily Deals, card-linked offers require no paper vouchers or manual tracking. Card members are enrolled automatically, receive offers from their trusted banks and card issuers, and redeem offers just by swiping their cards.
4. About Retail TouchPoints
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5. Panelists
SPEAKER SPEAKER
Madeline K. Aufseeser Jim Douglass
Senior Analyst Executive VP
Aite Group Cartera Commerce
MODERATOR
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
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6. 2008-2011: The Rise and Fall of
Daily Deals
Daily Deals
Will Close The Loop
From Online Marketing
to In-Store Sales!
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7. 2008-2011: The Rise and Fall of
Daily Deals
• Facebook abandons the Daily Deal market
• Yelp slashes investment in Daily Deals
Daily Deals
• New researchClose The Loop negatively
Will shows Daily Deals
impact From Online Marketing
Yelp reviews
to In-Store Sales!
• Daily Deals revenue decreases 7% in August1
170 of 530 Daily Deal sites sold
or shut down in 20111 1. Source Yipit
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8. Why such a fast fall?
• Hard to prove ROI on
acquisition or loyalty
• Fewer repeat deals from
national & local merchants
• More competition causing
downward pricing pressure
Consumer Acquisition
Costs Rising Merchant Revenue
Falling
• Too many sites competing for
same consumers
• Fragmented, untargeted
offers causing “deal fatigue”
• Pre-paid coupon model
frustrating for consumers –
high breakage
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9. #LiveWebinar October 5, 2011
Card-Linked Offers:
A Primer
Jim Douglass
Cartera Commerce
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10. What is a card-linked offer?
Card-linked offers are shopping deals linked to the
credit and debit cards consumers already have, use
and value.
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11. How It Works: Consumer Experience
1. OFFERS MARKETED 2. CONSUMER SHOPS
•Consumers learn about •Consumers’ passion for
offers from their banks and rewards influences behavior
card issuers. •Offers are “redeemed” just
•Offers marketed via card by swiping a credit or debit
Web portals, statements, card in retailers’ stores
emails, mobile sites, etc.
4 miles
per dollar
4. CONSUMER REWARDED 3. TRANSACTION TRACKED
•Consumer get extra cash, •All card purchases are
points, or miles right in their anonymously tracked
accounts •Retailers pay performance
•Extra rewards strengthen marketing fee for eligible
relationship with retailer and purchases
card issuer
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12. Driving ROI for Retailers
Measurable, risk-free lift in store sales
• Drive acquisition, spend and loyalty
• Closed-loop redemption analytics
• Incremental sales and ROI reporting
Attract and convert the right in-store shoppers
• Targeted, relevant offers consumers actually want
• Card-based targeting pinpoints key segments
• “Frictionless” redemption – no coupons or POS changes
Increase ROI with targeted, hard-to-reach media”
• Cost-effective marketing through bank & card issuer media
• Enormous reach across millions of loyal cardholders
• Targeted placements in Web offer portals, emails, statements
and mobile apps
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13. #LiveWebinar October 5, 2011
The Case for Merchant Incentives:
New Opportunities for Partnerships
Madeline Aufseeser
Aite Group
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16. Market Sizing: $115B In Card-Based Sales
Gross Dollar Value Transactions With Card-Linked Offer
Redemptions 2010-e2015 (In US$ Billions)
$115.1
$76.8
$47.5
$29.2
$15.8
$6.3
$1.5 $2.4 $3.8 $5.8
$0.3 $0.8
2010 e2011 e2012 e2013 e2014 e2015
Face amount of transactions, credit, debit and prepaid
Gross dollar value of offers - credit, debit and prepaid
Source: Aite Group
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23. With a New Type of Performance
Ad Network
Leading 60+ Million
National & Local Brands Active Cardholders
GIVE: Points/$, Miles, Cashback
Four of the top five card
issuers
OFFERS
Three of the top four
SALES airlines
GET: Acquisition, Spend, Loyalty Reach of 60M+ registered
credit & debit cardholders
Plus Thousands of Local Stores
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24. Using Card Targeting To Drive
Acquisition & Loyalty
Millions of Active Credit & Debit Cardholders
Acquire Customers Increase Spend Drive Loyalty
Target non shoppers Target infrequent customers Target loyal customers
Increase Repeat Broad-based
Acquire
Transactions and Order Marketing to Both
New Shoppers
Values Acquire and Increase
Retailer Strategy
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25. Competitive Spend Analysis
ANNUAL Cardholder Annual Spend with
TRANSACTIONS [RETAILER] in Category
Acquire Customers
Offers acquire
first-time shoppers
0 66%
Category Shoppers
Only Shopping with
1 $30/Shopper Competition
Drive Spend 2 $58/Shopper
Offers increase
shopping frequency & value 3 $86/Shopper
4 $114/Shopper
Drive Loyalty >
5 $249/Shopper
Offers increase loyalty from
existing customers
- 5 10 15 20 CARDMEMBERS
(MILLIONS)
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26. Case Study: Large Toys Retailer
CHALLENGE QUARTERLY SHOPPER’S AVERAGE
MARKET SHARE CHANGE QUARTERLY SPEND
• Acquire new customers
+0.52% $107
• Drive increased sales and +58%
increased basket size from
existing customers
+0.36%
$68
SOLUTION
Market Share (Q4)
Market Share (Q1)
Pre-Program (Q3)
Post-Launch (Q4)
• Executed Cartera card-
linked advertising strategy
• Retailer evaluated
transaction analytics on
quarterly basis to measure
sales from new & existing
customers
• Cartera-generated sales 0.52% increase market 58% increase in average
compared to existing share – 1 quarter quarterly spend
member sales
PERFORMANCE-BASED RESULTS
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27. Q&A
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28. Q&A // Panelists
SPEAKER SPEAKER
Madeline K. Aufseeser Jim Douglass
Senior Analyst Executive VP
Aite Group Cartera Commerce
MODERATOR
Debbie Hauss
Editor-in-Chief
Retail TouchPoints
#LiveWebinar
29. Thanks for attending!
You can download this
presentation & view the
webinar On-Demand here:
http://rtou.ch/card-linked-offers
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