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In-store retail marketers face tough challenges in today’s cross-channel marketplace — they need to find innovative ways to bring shoppers into the store and motivate them to purchase. The best marketing strategies are simple to implement, have proof of performance, and require little or no effort on the part of the shopper and retailer. Card-linked offers answer that call. 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, retailers can use anonymous transaction data to target the right customer segments and enjoy true incremental sales analytics. Card-linked offers provide a number of potential benefits for in-store retailers, including: 1) Risk-free sales boost – offers are funded only after qualifying sales occur 2) An uptick in new customer acquisition, repeat sales and basket-size 3) Taking market share from competitors – with data to prove it 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. During the upcoming webinar titled “Card-Linked Offers – The New Deal For In-Store Retailers,” merchants will learn more about the benefits of card-linked offers and how to initiate a program. Panelists: --------------- - Madeline K. Aufseeser, Senior Analyst, Aite Group - Jim Douglass, Executive VP, Retail Advertising & Partnerships, Cartera Commerce - Debbie Hauss, Editor-in-Chief, Retail TouchPoints
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#LiveWebinar
October 5, 2011 #LiveWebinar
The New DEAL For In-Store Retailers
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Launched in 2007
Over 20,000 subscribers
To provide executives with relevant,
insightful content across a variety of
digital medium
Free subscription to our weekly newsletter: www.retailtouchpoints.com/signup
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Madeline K. Aufseeser Senior Analyst Aite Group
Jim Douglass Executive VP Cartera Commerce
Debbie Hauss Editor-in-Chief Retail TouchPoints
MODERATOR
SPEAKER SPEAKER
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Daily Deals Will Close The Loop
From Online Marketing to In-Store Sales!
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Daily Deals Will Close The Loop
From Online Marketing to In-Store Sales!
• Facebook abandons the Daily Deal market
• Yelp slashes investment in Daily Deals
• New research shows Daily Deals nega:vely impact Yelp reviews
• 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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• Too many sites compe:ng for same consumers
• Fragmented, untargeted offers causing “deal fa:gue”
• Pre-‐paid coupon model frustra:ng for consumers – high breakage
Consumer Acquisi9on Costs Rising
• Hard to prove ROI on acquisi:on or loyalty
• Fewer repeat deals from na:onal & local merchants
• More compe::on causing downward pricing pressure
Merchant Revenue Falling
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October 5, 2011 #LiveWebinar
Jim Douglass Cartera Commerce
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Card-‐linked offers are shopping deals linked to the credit and debit cards consumers already have, use
and value.
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3. TRANSACTION TRACKED • All card purchases are anonymously tracked
• Retailers pay performance marketing fee for eligible purchases
4. CONSUMER REWARDED • Consumer gets extra cash, points, or miles right in their accounts
• Extra rewards strengthens relationship with retailer and card issuer
2. CONSUMER SHOPS • Consumers’ passion for rewards influences behavior
• Offers are “redeemed” just by swiping a credit or debit card in retailers’ stores
4miles per dollar
1. OFFERS MARKETED • Consumers learn about offers from their banks and card issuers.
• Offers marketed via card Web portals, statements, emails, mobile sites, etc.
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• Drive acquisition, spend and loyalty • Closed-loop redemption analytics • Incremental sales and ROI reporting
• Targeted, relevant offers consumers actually want • Card-based targeting pinpoints key segments • “Frictionless” redemption – no coupons or POS changes
• 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
Measurable, risk-‐free liO in store sales
APract and convert the right in-‐store shoppers
Increase ROI with targeted, hard-‐to-‐reach media”
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October 5, 2011 #LiveWebinar
The Case for Merchant Incen9ves: New Opportuni9es for Partnerships
Madeline Aufseeser Aite Group
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$6.3 $15.8
$29.2
$47.5
$76.8
$115.1
$0.3 $0.8 $1.5 $2.4 $3.8 $5.8
2010 e2011 e2012 e2013 e2014 e2015
Face amount of transactions, credit, debit and prepaid
Gross dollar value of offers - credit, debit and prepaid
Gross Dollar Value Transactions With Card-Linked Offer Redemptions 2010-e2015 (In US$ Billions)
Source: Aite Group
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50 125
232
377
609
914
42 105 194
316
510
766
2010 e2011 e2012 e2013 e2014 e2015
Credit Card Debit and Prepaid Card
Total US Card-Based Transactions With Linked Offer Redemptions 2010-e2015 (In Millions of Transactions)
Source: Aite Group
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877 922 960 995 1025 1047
51 87 148
222 333
467
8 19 36 58 93 140
2010 e2011 e2012 e2013 e2014 e2015
Number of US credit, debit and prepaid accounts
Credit, debit and prepaid subscriber base receiving offers
US Cardholders Enrolled In Card-Based Offer Programs 2010-e2015 (In Millions of Accounts/Subscribers/Redeemers)
Source: Aite Group
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October 5, 2011 #LiveWebinar
Card-‐Linked Offers: Retailer Benefits & Case Study
Jim Douglass Cartera Commerce
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Leading Na9onal & Local Brands
60+ Million Ac9ve Cardholders
GIVE: Points/$, Miles, Cashback
SALES
OFFERS
Plus Thousands of Local Stores
Four of the top five card issuers
Three of the top four airlines
Reach of 60M+ registered credit & debit cardholders
GET: Acquisi9on, Spend, Loyalty
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Retailer Strategy
Millions of Ac:ve Credit & Debit Cardholders
Acquire Customers Target non shoppers
Acquire New Shoppers
Increase Spend Target infrequent shoppers
Increase Repeat Transac9ons and Order
Values
Drive Loyalty Target existing customers
Broad-‐based Marke9ng to Both
Acquire and Increase
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Cardholder Annual Spend with [RETAILER] in Category
CARDMEMBERS (MILLIONS)
66% Category Shoppers Only Shopping with Competition
Acquire Customers Offers acquire
first-‐:me shoppers
Drive Spend Offers increase
shopping frequency & value
Drive Loyalty Offers increase loyalty from
exis:ng customers - 5 10 15 20
>5
4
3
2
1
0
ANNUAL TRANSACTIONS
$30/Shopper
$58/Shopper
$114/Shopper
$86/Shopper
$249/Shopper
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CHALLENGE
• Acquire new customers • Drive increased sales and
increased basket size from existing customers
PERFORMANCE-‐BASED RESULTS
SOLUTION
• Executed Cartera card-linked advertising strategy
• Retailer evaluated transaction analytics on quarterly basis to measure sales from new & existing customers
• Cartera-generated sales compared to existing member sales
Mar
ket
Shar
e (Q
4)
Mar
ket
Shar
e (Q
1)
0.52% increase market share – 1 quarter
+0.36%
+0.52%
QUARTERLY MARKET SHARE CHANGE
58% increase in average quarterly spend
SHOPPER’S AVERAGE QUARTERLY SPEND
Pre-
Prog
ram
(Q
3)
Post
-Lau
nch
(Q4)
$107
$68
+58%
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Your GoToWebinar Attendee Viewer is made of 2 parts:
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#LiveWebinar
Madeline K. Aufseeser Senior Analyst Aite Group
Jim Douglass Executive VP Cartera Commerce
Debbie Hauss Editor-in-Chief Retail TouchPoints
MODERATOR
SPEAKER SPEAKER
#LiveWebinar
You can download this presentation & view the webinar On-Demand here:
http://rtou.ch/card-linked-offers
