The first time a cardholder sees cash back land in their account, they get a little jolt of excitement. The fourth or fifth time, not so much. And it's not because people don’t want cash back. New data from Wells Fargo indicates the opposite: 75% of US consumers prefer cash back rewards.
But in a market where consumers are bombarded with discounts and promos, how do you make your offer stand out?
The answer isn’t necessarily a bigger reward. It’s one that feels relevant, timely, and worth a consumer’s attention — because it gets better with every purchase, it disappears fast, or a single tap gets them a higher rate.
Which is why Kard is launching dynamic offers, a new set of cash back rewards that respond to customer behavior, like repeat purchases, spending progress, or engagement. They’re specifically designed to incentivize more purchases, make cards stickier, and yield greater customer LTV for our distribution partners and brands alike.
Below, we share the four new types of dynamic offers that we’re rolling out (8 formats total), and the benefits they bring to everyone in the rewards marketplace.
4 new dynamic offer types
Each targets a different behavior or business outcome:
1. Rewards that motivate value-driven customers
According to EY’s Future Consumer Index, 50% of Millennials and 43% of Gen Z are very concerned about the country’s economy, and PwC's five-year view of Gen Z indicates that more than 79% wait for products to go on sale.
All this to say: consumers are looking for a sweet deal. That’s why we created several kinds of offers that give them even more bang for their buck:
- Tap-to-boost offers (available now): A user taps on an offer to “boost” the rate. For example, tapping a 5% cash back offer might get them 8% cash back. Note: In this example, cardholders will still get the 5% cash back if they don’t tap. Kard automatically matches transactions to available offers.
- Spend-tiered offers: A user receives a reward if they spend a specific amount (or more) with a brand.
2. Rewards that encourage repeat purchases
The more a user engages with a brand, the better they expect their rewards to get. That idea is the North Star for:
- Purchase count offers: A user receives a reward after a specific number of purchases from a brand within a given timeframe — think of it as a punch card.
- Progressive offers: A user receives a higher reward for each additional purchase (2% cash back on the first purchase, 4% cash back on the second purchase, 6% cash back on the third purchase).
- Tap-to-renew offers: After making a purchase and receiving a reward, a user can extend the offer to their next purchase, leading to more card activity for the issuer and repeat business for the brand.
3. Rewards that create urgency
Scarcity closes the gap between passive interest and an actual purchase. Which is why we’re creating offers that give users a reason to act right now:
- “Flash” offers: A user can only redeem it during a certain period of time.
- “While supplies last” offers: A user can only redeem an offer while it’s still available. Once a set number of users have redeemed an offer, it closes.
Brands could use these kinds of offer formats to spike purchase volume during a key selling moment (e.g., back to school) or a particularly slow time of year.
4. Rewards that incentivize explicit actions
For brands that need more deterministic attribution — where every conversion requires a clear, traceable signal — Kard can provide a balance between the CLO always-on model and click-to-conversion trackability that marketers are used to.
Tap-to-boost, tap-to-renew, and tap-to-activate balance reach and user experience with click attribution, requiring cardholders to engage with (aka tap) an offer before making a purchase in order to receive the reward.
How dynamic offers benefit distribution partners
Dynamic offers give FIs and fintechs:
Access to better brands
Brands in certain categories want to reward users after specific purchase behavior, not just any swipe. For instance, subscription brands may only want to reward users who convert from a trial to a monthly or annual subscription.
Dynamic formats make it possible to support these kinds of requirements, which brings more brands into Kard’s network (and gives cardholders more reasons to reach for their cards).
More reasons for cardholders to open the app
Many of these formats (Tap-to-Boost, Tap-to-Renew, Progressives) give users a reason to check their banking app in between purchases, keeping issuer cards top of mind and top of wallet.
A path to richer rewards
Brands in Kard’s catalog are willing to provide higher rewards for users who demonstrate genuine interest and engagement. Dynamic offer formats help paint that picture, unlocking better rates for end consumers.
A more mature rewards experience
Dynamic offer formats add dimension to rewards programs, making issuer apps feel like they were built for how people shop today.
How dynamic offers benefit brands and retailers
Dynamic offers give brands the ability to:
Prove that offers drive purchases
Dynamic formats generate engagement data that makes it easier for brands to track offers to conversion. Which, in turn, makes it easier to justify reward spend and optimize future campaigns.
Choose formats that fit their category
Retailers want to incentivize bigger baskets, QSR and gas brands want to drive frequency, and grocery brands want to build loyalty.
Dynamic offers allow brands to adapt and customize offers to how their industry works and their specific goals.
Control what they’re optimizing for
Trying to reach new customers? Re-engage lapsed ones? Increase average order value?
We mapped formats to each of these objectives, meaning Kard campaigns can be calibrated to specific outcomes rather than just an overall increase in transactions.
Nudge consumers toward conversion
Flash and While Supplies Last offer formats give users concrete reasons to “Buy now.”
Creating better outcomes for everyone
With dynamic offers, FIs and fintechs drive engagement, brands capture intent signals, and cardholders earn better rewards.
Want to see how our new formats look? Check out our demo.
Building on our platform? We’ve released an Extended API to help you take advantage of these formats. Get started here →
