MANAGE.COMMUNICATE.THRIVE

Loyalty programs increase Credit & Debit Card use for banks

  

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Offer retail discounts to boost activity

Want to increase the credit card transactions by your members and customers? One popular strategy is to offer retail discounts for credit card use. New transaction-based marketing systems can help you take advantage of your existing customer data to increase credit card activity. After all, you already have a great deal of data about the buying habits of your customers, why not offer transpromotional discounts targeted at your best customers for the kinds of products and services they tend to purchase? 

Transaction-based marketing allows you to present your customers with rewards and incentives for shopping with your bank card, and there is no need for extra coupons or promotional codes. The best part is that discount incentives are placed directly in your customer's online bank statement. Consumers activate an offer by clicking on the hyperlink in their online statement and then use their bank card for the purchase. No coupons are necessary.

How can this help you? When your client logs into their online banking, the statement includes special offers based on their previous spending. Offers are presented next to the transaction record. Users click the expand link to get more information and then click the “accept offer” link to take advantage of the promotional deal. Once the promotion has been activated, the cardholder simply uses the associated debit or credit card and the reward dollars are automatically credited to the account at the end of the next month. Nothing needs to be printed or carried to the store. Qualifying transactions are instantly confirmed in your client’s electronic statement.

Transaction-based marketing is a powerful tool you can use to develop incentive programs and increase credit card transactions. Merchants fund the rewards in exchange for the highly targeted advertising. To date, more than 50 national retailers, like Burger King, McDonalds, and other well known names have signed up for this new marketing delivery channel.

This approach gives positive results, with response rates jumping by as much as  40%. Utilizing customer correspondence services like Statement2web can speed the delivery of transaction based marketing initiatives.