Card-linked marketing has emerged in recent years as a way for companies to target current customers and attract new customers, but a recent survey revealed the practice is not well-understood or widely used in the financial services industry.
According to the survey, released by Bank of America and The CMO Club, 90 percent of companies who have used card-linked marketing saw an increase in revenue as a result, and nearly all said the solution is effective in reaching their target audience.
In 2012, Bank of America launched its online and mobile cash-back deals program BankAmeriDeals, which presents bank customers with various offers for department stores, restaurants and fast food chains in online and mobile banking apps.
Other companies, such as Microsoft, MasterCard, California Pizza Kitchen and American Express, have launched similar programs, but while the data indicates such programs are effective at boosting the bottom line, they are not yet fully understood.
The survey showed that while 78 percent of chief marketing officers said they know what card-linked marketing is, over half have never implemented a program. More than 50 percent of CMOs who have never used a card-linked marketing program said they do not know how it works, and one in three said they are not sure whether the programs are effective.
Bank of America said its BankAmeriDeals program has provided more than 400 million offers to customers, generating over $730 million in revenue for merchants—an indication that similar programs may be worthwhile for companies looking to expand their customer base and increase revenue.
“Program innovations have gone beyond streamlined redemption at the point-of-sale to not only address what CMOs value in a marketing program, but what they need to be successful in customer loyalty and engagement,” Pete Krainik, the founder of The CMO Club, a membership organization that brings together more than 850 heads of marketing, said.