To get started with card-linked rewards you have to first know what will entice your customers - what rewards do they want? Then, you need to find a provider who offers card-linking. Once this has been set up, you'll want to plan your marketing strategies to advertise your new card-linked rewards.
To know how in more depth, continue reading below. But first, let's recap on why you should consider using card-linking technology to offer rewards.
Utilising card-linked rewards can benefit your bank in 5 ways:
Provide you with more user data to analyse
The time for card-linking is right now
In 2019, 44% of companies partaking in a survey by Cardlinx saw their card-linked transactions grow over 100%, showing the disruptive potential card-linking technology has to reward systems currently offered.
And in a recent study performed by CardLinx, it was revealed that in 2020, the demand for card-linking is increasing. CEO of CardLix, Silvio Taveras, explained that "consumers are looking for easy and rewarding ways to shop, prompting the proliferation of card-linked offers at unprecedented levels".
Card-linked rewards, therefore, create a win-win. Consumers gain a friction-free solution to their growing need for streamlined rewards and discounts, and we get an increase in sales and loyal customers.
Through using card-linking, you remove the need for any form of loyalty card, and once a card has been linked, it requires no further actions to be taken (other than redeeming a reward!).
Many challenging banks have stepped onto the card-linking wagon.
For example, AMEX offers a variety of reward cards. Their Reward credit card has a welcome offer where new members can earn 5,000 points if they spend £2,000 in their first 90 days. For every £1 spent, 1 point is earned. You can then redeem your points at their partners, which includes Amazon, Boots and Currys PC World.
Mastercard's loyalty scheme offers up to 10 points for every £1 you spend at selected retailers, and 1 point for every £5 you spend elsewhere. Plus, they give you 2,500 welcome points worth £25 when you make your first transaction. You can then use these points towards purchases.
Truth is, customers are looking at cards differently than they used to. They want to know how their card can be more than just a form of payment and expect it to be beneficial to their lives in other ways. So, if you don't have a card-linked reward scheme, there's a good chance you're missing out on a lot of potential customers.
To get started, first analyse your customer data. Why do customers come to your business? What do you offer that aligns with their needs and is there a way you can enhance this through rewards?
Focus on what makes you unique and utilise the data you currently have on customers to strengthen your value proposition and create great offers through card-linking technology.
After you have analysed your customer data, you can begin to figure out what provider would be best suited to you.
There are now many card-linking providers popping up as people are realising that banks and merchants are seeking innovative solutions to connect with customers and create brand evangelists.
There are 5 which are leading the pack, these include:
At LUX, we have partnered with Fidel. Fidel uses a secure API to collect user data from three major card networks (VISA, Mastercard and AMEX) and transfers the relevant information between the merchant, card issuer and customer.
With the data obtained, LUX can create targeted ads and offers which incentivises users to continue dining at LUX venues. This drives our Lifetime Value, helping us to create loyal customers.
The card payment data Fidel collects consists of:
Online & offline tracking information
Transaction amount, date and time
Payment method, network, currency, and status
Each provider varies in their methods of gathering data and helping you to connect with customers so be sure to explore the options and choose what aligns best with your goals.
What to do after you've chosen your provider?
Once you have decided on your provider, you're almost ready to go.
But before you can sit back and let your rewards programme take flight, you must have rewards and a marketing strategy in place to advertise your new scheme.
Think about the current ways in which you engage with current and new customers and utilise those platforms to spread the message. Create social posts showcasing the variety of rewards and the simplicity of the scheme.
You should also think about how you can engage with your loyal customers, perhaps offer a certain amount of free points to entice them to join your scheme as rewarding them will help to begin the journey of converting them into brand evangelists.
To really grab your prospective and current customers' attention, you can integrate LUX into your card offerings.
By offering LUX, your customers gain free access to our membership app and will be able to earn up to 10% of their restaurant spend back in reward points. These points can then be spent on over 100 luxury rewards.
And with over 300 hand-picked, high-quality restaurants, bars, cafes and pubs across the UK, only the finest experience is promised.
Our premium rewards scheme will strengthen the relationship between your customers and their payment card as they must continue dining to be able to earn our rewards. And as we only partner with high-end restaurants and bars, we're sure to bring the luxury to your value proposition.
To know more about LUX or card-linking contact email@example.com