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The New DEAL For In-Store Retailers
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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
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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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#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
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