In the new era of sales promotion, consumers are now expecting more personalization from retailer outreach. They also want to see retailer engagement offers delivered with more frictionless and seamless redemption methods that fit into their current buying habits instead of competing with them. Card-Linked Offers (CLOs) were specifically developed to deliver on this promise for consumers and at the same time to help retailers win more market share by converting more sales, particularly at the critical "moment of choice."
Retailers used to lean heavily on coupon distribution to drive short-term sales promotion. Coupons have evolved in their digital (versus physical) distribution and integration into consumer loyalty programs. Still, the fact remains that this channel only appeals to a small subsegment of shoppers (namely, “Value Seekers”) and does little to drive ongoing market share gains. Marketers recognize a more effective way to reach a wider audience and utilize online media to drive in-store and online spend, CLOs. CLOs work by allowing retailers to advertise directly to consumers through bank marketing channels such as email, text messages, and online banking/app environments. Through this channel, retailers can make a compelling cashback offer to get shoppers to buy from them and forego their competition, using their payment card as the delivery vehicle for these offers. With the 1st party (non-PII) data made available from the banks' marketers can target shoppers with the relevant offer at the optimal time in their buying journey (hint: when they are ready to make a buying decision) and thus drive both incremental sales and market share capture but also influence long term shopper loyalty. It's seamless, frictionless, and highly effective. Retailers only pay for CLOs when they drive an actual purchase.
We've often heard the statement that about 50% of all advertising spend goes wasted. The problem for retailers is that they generally don't know which 50% is wasted due to a lack of attribution reliability. But because CLOs can tie together online activity and in-store/online purchases, the business can directly measure the effectiveness and ROI of this channel.
CLOs work and are being added to the digital marketing mix across the board for US retailers. Growth is a simple game. Win more market share than your competition. CLOs accomplish that and ensure longevity for savvy retailers looking for that growth.
Contact us today and learn how Kard can help increase incremental sales seamlessly with no additional hardware, software, or employee training required.