This survey delved into consumer attitudes regarding loyalty programs and card-linked offers, as well as strategies for merchants to enhance the visibility and utilisation of such offers.
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GLOThe PYMNTS Intelligence report, “Leveraging Item-Level Receipt Data: How Card-Linked Offers Drive Customer Loyalty,” developed in partnership with Banyan, stems from a comprehensive July survey encompassing over 2,000 U.S. consumers. This survey delved into consumer attitudes regarding loyalty programs and card-linked offers, as well as strategies for merchants to enhance the visibility and utilization of such offers.
The findings indicate that among the surveyed respondents, 85% are inclined to utilize a card-linked offer program specifically tailored to a product. Within this group, 54% are likely to employ these offers within the next three months, particularly for purchasing subscriptions to digital streaming services.
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In the current context, the increasing prices of streaming services pose a risk of distancing their customer base.
For example, during the fiscal third quarter, The Walt Disney Co.’s Disney+ experienced a decline of 7.4% in its subscribers, roughly amounting to 300,000 individuals. This decline coincided with plans to raise the monthly fees and enforce measures against password sharing.
In response to consumer interest in card-linked streaming offers, NBCUniversal’s Peacock seized the opportunity. Recently, Mastercard introduced its inaugural streaming subscription offer, providing eligible cardholders a $3 statement credit for subscribing to Peacock’s Premium monthly plan, and a $5 statement credit for Premium+.
Annie Luo, the executive vice president of global partnerships and strategic development at Peacock, emphasized the consumer-centric approach, stating, “We consider Peacock as a business that prioritizes consumers. This partnership, with the consumer at the center of Mastercard’s benefits and rewards program, is a natural alignment for both brands.”
Additionally, Bank of America expanded its Customized Cash Rewards credit card over the summer to enable customers to receive 3% cash back on streaming services.
Jason Gaughan, the head of consumer credit card products at Bank of America, highlighted the bank’s commitment to evolving their products in line with customer demands, particularly observing a growing interest in services such as electric vehicle charging and streaming.
