Cardlytics revealed today the emergence of its patent-pending banking rewards solution that allows merchants to access one of the most trusted and widely used, yet least penetrated, consumer channels – online banking. For the first time, merchants can reach customers based on what they actually purchase and present them with valuable incentives directly within their online banking pages. Merchant incentives fund either cash-back rewards or accelerate earnings for a bank’s existing rewards program.
"First generation merchant funded rewards programs don’t meet the needs of banks or merchants," said Scott Grimes , Cardlytics’ CEO. "They are largely untargeted Internet-based affiliate marketing offers that require customers to leave the banking site and make a purchase on-line. Offers are not relevant and have relatively little value, customer response is low and merchants see little incremental sales. Ultimately, they add cost to the card relationship without materially moving the needle on loyalty."
Cardlytics is being launched by a team of marketing, technology and banking veterans led by Scott Grimes and Lynne Laube, former executives with Capital One, who together developed and introduced another revolutionary banking product – decoupled debit. In addition to his role at Capital One, Grimes formerly led investments in early-stage tech companies with Canaan Partners and has also served as a Principal at McKinsey & Co. Laube is a seasoned banker with over 15 years experience building and growing new businesses at Bank One and Capital One.
Bankers are increasingly challenged to evolve rewards programs from a retention tactic to a strategic competitive weapon. An essential element of this evolution, merchant funded discounts bring a rich new source of loyalty economics into the banking system while providing a powerful new channel for merchants to attract and retain customers.
While many banks offer programs that direct customers to a Rewards Mall, Cardlytics delivers proprietary merchant offers that are targeted by an individual consumer ’s purchases enhancing the relevance and value to account holders. Cardlytics also delivers unparalleled targeting, messaging and reporting to their merchant partners.
"Among the vendors in the bank rewards/loyalty industry, Cardlytics’ solution has raised the industry standard for its competitors by offering unique value to their banking clients, their customers and their merchant partners." said Elizabeth Rowe, director of Banking Services for Mercator Advisory Group.
"We bring consumers great offers from the merchants they shop with every day," said Laube, Cardlytics’ President. "Because they can target consumers based on exactly how they shop and precisely measure the results, merchants are excited to provide rich incentives to attract new customers and build customer loyalty." Consumers will also find taking advantage of offers to be convenient and familiar.
Consumers receive relevant and valuable incentives via their online banking pages based on how they already shop. They redeem the offers by using their bank card with no coupons or other actions required. With even moderate participation, consumers can save several hundred dollars a year. The Cardlytics solution was designed specifically to meet privacy, security and regulatory demands of banking. Consumer data never leaves the bank or is shared with third parties.
Banks can significantly grow the value of their current rewards programs with the Cardlytics solution, which in turn can more than double the potential profitability of a typical debit account. Banks can easily implement the Cardlytics solution with no capital investment and no ongoing expenses. "In today’s economic climate, financial institutions are challenged to reduce their dependence on fees and interchange while cutting costs," said Laube. "Our solution requires minimal IT development, has no one time or ongoing costs, and provides banks with new source of revenue and rewards at a time when they need it most."
About Cardlytics
Cardlytics is changing the dynamics of online advertising with solutions that connect merchants and consumers to create a better kind of rewards program for bank customers. Privately held and headquartered in Atlanta, Cardlytics can be found at www.cardlytics.com
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