Card-Linked Marketing: Where it Fits in the Mix

Card-Linked MarketingHow it Fits in the Mix

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Wednesday, 11/6/13

© 2013 Cardlytics. Proprietary and Confidential.2

Covered Today

• Card-Linked Marketing – Definition & Key Elements

• Card-Linked Marketing as part of the Media Mix

• Case Studies – Meeting Specific Marketing Objectives with CLM


Elements of Card-Linked Marketing

• Target based on Past Purchase Behavior

• Presented to the Consumer as a Bank Rewards Program

• Chosen Offers Directly on Card

• Unique Value to Retailers


Target Based on Past Purchase Behavior

Growth in Electronic Payments = Spend Data

1999 2005 2010

43%56%

69%

57%44%

31%

In-Store Payment Type

Cash/CheckElectronic Payment

Source: BAI & Hitachi Study of Consumer Payments


Debit More Commonly Used than Credit

1999 2005 2010

49%

66%72%

51%

34%28%

In-Store Electronic Payments

Debit/PrepaidCredit

Source: BAI & Hitachi Study of Consumer Payments


Technology Between CL & the Bank


Cardlytics

Offer Management System (OMS)

Offer Placement System (OPS)

Offer Details Performance Reports

Bank

Firewall

Campaigns

Retailers


Consumer Sees a Bank Reward Program

© 2013 Cardlytics. Proprietary and Confidential.

Mobile B

ank Exam

ple

9

Online Banking Example



No Change to Retailer POS


Unique Value to Retailers

13

• Online & mobile banking nearly as commonly used as social applications

• Nearly half of Millenials use mobile & online banking apps

• 25% of online bankers use their banking app every day

• Engagement typically 15%

Scale

Source: Pew Internet & American Life Project


Multi-channel Brand Exposure


Mobile

Online Text

You have a new deal forWawa. View available deals for details.

BankAmeriDeals(TM):We’re processing your cash back deal for Wawa.

Email

We’re processing your cash back deal for Wawa

Measurement


Campaign Reporting• Segment specific• Customers, impressions, trips, sales

Customer Value• Track new customer purchases over time• Level and depth of additional trips

Incremental Impact• Incremental lift• Benchmarking against base sales and trips


Covered Today





Media Mix Spending

Lead Gen & Affiliate

Email

Social Tech & Services

Mobile

Outdoor

Yellow Pages

Display

Magazines

Radio

Search

Newspaper

Teleservices

Direct Mail

TV

$0.2

$1.8

$2.1

$4.1

$6.8

$8.2

$13.7

$14.0

$15.9

$17.8

$19.8

$40.7

$45.2

$64.5

Source: Winterberry Group - Analysis of multiple sources

Traditional

Digital

2012 U.S. Media Spending in $ billions


Card-Linked Marketing within the Media Mix

Purchase History

Demographics

Intent

Target based on:

IncreasingMeasurability

Card Linked

PrintTV & Radio

Direct Mail

Search

Affiliate

Social

Online Coupons

Display

Email


Covered Today




Acquire New Customers


• Attract customers new to their brand

• Identify home improvement category “spenders”

• Use Card-Linked Marketing to present a marketing offer only to those consumers

20

Home Improvement/Home Goods Retailer:


CLM To Attract New Customers

Targeting to Attract New Customers:

•Consumers living near stores

•Consumers who had shopped in Home Improvement (any store) in the past 6 months

Marketing Offer:

• 15% Cash Back on in-store purchase, offered though Card-Linked Marketing


Campaign Result: Lasting New Customer Acquisition

Month 1 Month 2 Month 1 Month 2 Month 3

0%

35%

45%

25%20% 21%

100%

65% 55% 75% 80% 79%

CompetitorsRetailer

Pre-Campaign

Campaign Post-Campaign

Retailer vs. Competitor Share Over Time100% = all category spend

ThankYou
