MERCHANT FUNDED CARD-LINKED OFFERS
THE PROVEN MODEL
For retailers it’s finally an ROI on advertising dollars, which are much less impactful in today’s fragmented market. Merchants are looking for better ways to reach their target audience and they want to measure the return on their marketing investment. Partnership marketing, through Keeping It Local’s performance based rewards programs, enables merchants to get the best of both worlds.
RETURN ON INVESTMENT
Keeping It Local offers online, bricks and mortar, or both. Merchants who participate in merchant funded rewards programs only pay when customers spend money at their stores. This “pay for performance” model helps merchants see immediate results for the investment they make in the program.
Consumers receive offers via a financial institutions brand or a source they know and trust, so the credibility of the message is much higher than traditional advertising.
A major benefit of Keeping It Local’s marketing programs for both retailers and banks is the ability to fine-tune the campaign based on transactional data to make offers more relevant to motivate an increase in purchases and frequency.
DO THE MATH (ROI)
Take actual merchants that offered customers 15% back on purchases of $50 or more. Customers receiving the offer were identified via credit and debit card financial partners.
The numbers indicated that 40% of customers who took advantage of the offer hadn’t shopped at the store in the previous four to five months. The average transaction size jumped from $45 pre-offer to $85 after the promotion — and 40% of the new customers returned in approximately one month
Another recent study showed that for the first quarter of 2012, the average monthly spend for cardholders registered in loyalty bank programs was 49% greater than that of non-registered cardholders—$1,082 vs. $726