9 out of 10 marketers who used card-linked marketing saw a boost in revenue from the program. So what is CLM and why do you need it?
There’s a new type of marketing that could possibly replace email offers, coupons, newspaper advertising, online and TV advertising. It’s called card-linked marketing.
CLM is a method in which consumers receive targeted ads on their online bank statements and digital offers are uploaded straight to their credit or debit cards, and marketers are loving it. According to a survey by The CMO Club and Bank of America, 9 out of 10 marketers who used card-linked marketing saw a boost in revenue from the program. And 98% of those surveyed considered it an effective solution for reaching target audiences. Another 96% said they plan to use CLM in the future.
A win-win situation for customers and marketers
So why is card-linking so great? According to Kasey Byrne, SVP of marketing at Cardlytics, it’s the most targeted way to reach consumers. “CLM can provide recommendations based on ‘whole-wallet’ spend -- the consumer's history across stores and categories,” Byrne tells CMO.com.
In essence, you’re targeting customers based on their actual purchase history, not just implied or aggregated data figures. This makes conversion rates sore and rebate redemptions more likely- 80% more likely to be exact. Sounds like authentic data-driven marketing to me.
Insight is endless with card-linking marketing. With CLM advertising platforms, marketers can analyze in-store and online consumer-spending trends, seasonal trends, store visiting frequency, and visits to competitors These data points allow marketers to target new customers and reward existing customers with card-linked offers.
Here’s how it works: card-linking marketing programs like edo Interactive and Cardlytics have software that analyzes millions of card payments each day (in conjunction with major banks of course). Based on these analytical conclusions, marketers can send targeted or rewards-based ads to drive repeat sales and customer loyalty. With CLM, marketers can also target customers who normally shop with competitors, by offering cash-back rewards for purchases.
And what’s great about card-linking marketing and offers is that it’s paper-free. The offers are sent straight to an individual’s mobile or online banking platform, making redemption hassle free not only for companies, but also for consumers.
Consumers are no longer forced to cut out coupons, or slow down employees at the cash register. They can simply click the offers they want via their online banking platform, and the discount is taken behind the scenes. It’s so simple for consumers, that many are quick to employ the new system. By 2015, over 460 million credit, debit and prepaid cards will be enrolled in card-linked programs.
Since BofA’s BankAmeriDeals launch in 2012, the CLM program has helped customers save more than $20 million. Consumers are clearly benefiting from this new marketing method, but is it cost-effective for brands? Ask the merchants who generated over $730 million in revenue resulting from card-linked offers. Or the 54 percent of marketers who said they were able to drive repeat sales. Or the 48% who acquired new customers. And the 48% who think their CLM campaign was more effective than targeted social media advertising, ask them too.
How you can start today
Can small businesses afford this marketing strategy? Edo Interactive offers an economical solution. You choose your budget and only pay based on profitable ad sales. There’s no new POS system investment, no training involvement, no hassle. The same BofA study found that 53% of marketers say they don’t know how card-linked marketing works. But now you know how it works and can move forward with a CLM if you choose to do so.