Dive Brief:
- Nearly half of retail-branded cardholders say reducing costs is the most important reason to use card-linked offers, according to a survey of 2,000 consumers by PYMNTS Intelligence and receipt data platform Banyan released Monday.
- Cardholders found lack of information was the biggest obstacle to using promotions. More than one-third of respondents cited lack of familiarity with the program as the reason they didn’t take advantage of card-linked offers.
- Consumers’ interest in discounts and easily understood offers from retail-branded cards mirrors what they want from loyalty programs. A recent survey by Deloitte found that consumers primarily seek simple financial benefits, like cash-back programs, when considering loyalty membership.
Dive Insight:
Simplicity and value are proving to be the core tenets of any program that seeks to build long-term relationships with a customer, whether it’s downloading a loyalty app or signing up for a retail-branded credit card.
Only 10% of consumers are highly informed shoppers who consider all factors when shopping, according to Gartner’s consumer and cultural trends research. Most customers lack the time and the desire for extensive research, said Brad Jashinsky, director analyst at Gartner.
“Shoppers don’t want to jump through hoops or be surprised by unexpected limitations of discounts and offers,” Jashinsky said in an email to CX Dive. “Loyalty programs and card-linked offers need to deliver value quickly for consumers to want to stick with the programs.”
This can be a matter of providing easy access to promotions no matter what channel shoppers choose, as well as reminding customers about available promotions throughout their journey.
Jashinsky noted that retailers tend to only contact shoppers about promotions when they first sign up for a program or earn a reward. However, frequent reminders are important, especially for companies with who don’t make frequent purchases.
Educating shoppers on the benefits of card-linked discounts can be a bigger challenge than loyalty rewards, according to Jashinsky. Retailers need to work closely with their bank and financial company partners to teach consumers about cards offers.
