Drawing insights from a survey of over 2,000 consumers, the study examines how these offers enhance loyalty and attract new customers.
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GLOThe holiday shopping season of 2023 posed challenges for shoppers due to increasing prices, making budget management tough. In response to this competitive market environment, card-linked offers gained popularity among savvy consumers looking for deals. Many retailers and card issuers utilized detailed purchase data to tailor discounts and rewards, as highlighted in the report “Leveraging Item-Level Receipt Data: How Merchants Engaged Holiday Shoppers With Card-Linked Offers” by PYMNTS Intelligence and Banyan. Drawing insights from a survey of over 2,000 consumers, the study examines how these offers enhance loyalty and attract new customers.
The research indicates significant interest in card-linked offers, with approximately 63 million holiday shoppers keen on using them. Among these, nearly two-thirds of cardholders actually utilized such offers, and 27% expressed a high likelihood of doing so. Notably, interest was particularly strong among key demographics, with 40% of consumers with children and 39% of millennials showing a high inclination toward using card-linked offers during the holiday season.
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The attractiveness of card-linked offers to consumers is fueled by the availability of discounts and their user-friendly nature. Notably, the allure of good cash-back rewards and discounts applied automatically are highlighted as primary reasons for using these offers. Additionally, consumers appreciate the convenience of streamlined checkout processes and the chance to explore new merchants.
The survey underscores consumers’ strong interest in card-linked offers tailored to specific products, especially for everyday essentials. Transportation and grocery expenses stand out as top categories, with 60% of cardholders indicating a high likelihood of utilizing such offers for these needs.
Delving deeper into the data reveals that both existing and potential customers are eager to switch to retailers offering product-specific card-linked deals, indicating that enticing and relevant offers can sway even previously loyal patrons. Millennials, newcomers, and parents are particularly inclined to switch, with almost 42%, 41%, and 40% respectively expressing a strong likelihood to do so. Furthermore, over one-third of Gen Z respondents express a similar inclination.
Overall, the report emphasizes that 57% of consumers are at least somewhat likely to switch to merchants offering product-specific card-linked discounts and rewards. Consequently, tailoring card-linked offers based on item-level purchase data emerges as a potent strategy for engaging holiday shoppers and maintaining appeal among everyday consumers.
As outlined in the study, customizing product-specific card-linked offers grants retailers a competitive advantage in driving consumer expenditure, attracting new clientele, and nurturing enduring customer loyalty.
Source: PYMNTS
