Businesses are constantly looking for new ways to keep their existing customers engaged and happy, while continuing to grow their user base. This can be a complex balancing act, however, it can become a reality with Card Linked Offers.
Why Card Linked Offers Make Sense
Customer loyalty programs can vary quite a bit these days. From discounts and VIP memberships to free shipping and points reward programs, and when done right, these can be very beneficial for your business. However, one of the most powerful solutions can be Card Link Offers (CLOs).
Card Link Offer Programs are the ultimate frictionless online to offline (O2O) solution. Think about a platform like Groupon, but without the costs, and the one time buyers.
CLOs provide merchant discounts or cash back rewards when using an authorized card on listed shops. They can also provide instant and automated credit rewards, with total traceability that ensures a win-win for both customer and the brand.
With a powerful rewards engine, such as Hydrogen Reward, all rewards matching, calculations, and disbursements are automatically linked to card transactions, with zero manual input required.
The consumer can then get notified via email, SMS, mobile sites, social networks, or push notifications on an app. The retailer can benefit from targeted marketing, brand recall, and free promotions.
CLOs Smash The Marketing Budget
CLOs require very little effort on the part of the marketer. There is no printing of coupons or designing web pages. Once a transaction occurs, an instant cash back or reward notification is received, quickly building customer loyalty.
In a 2020 global CardLinx survey, card-linking accounted for over $1 billion in retail sales for 71.4% of the respondents, and marketers that spend between 5% and 10% of their marketing budget on CLOs grew their business by an average of 64.3%!
If your brand is looking to acquire new customers, target a competitor’s market, track the results, revive lapsed consumers, and build customer loyalty – consider CLOs. They are one of the simplest recurring income streams that can grow proportionally to the end users consumption.
Growing in Popularity and Building Loyalty
In the survey mentioned above, CLOs are the second most popular ad channel among merchants (21%) and nearly half of the respondents (48.6%) view card-linking programs embedded in mobile wallets, have the most potential to have a positive impact on their business.
For business owners, understanding the importance of consumer loyalty is an invaluable component of brand and business health.
According to various customer service statistics, it can be 5 to 35 times as expensive to attract a new customer when compared to retaining an existing one. Even if you get a new customer, you will need time to create a return on your investment.
New customers can require a lot of support before they clearly understand your offering or processes – while loyal ones are already aware of how your solution works.
As existing clients already love what your company is offering, you can be less worried about competition. With the effective use of CLOs, you can keep existing customers happy, and drive sales.
Most importantly, loyal customers often spend more on your brand. They will follow your campaigns, offers, and even try to maximize discounts as well.
These factors may explain why many businesses today keep saying that the best customers are existing customers, and also why CLOs are gaining ground in the modern marketing mix.
CLOs with Hydrogen
An effective customer loyalty program that leverages CLOs is a strategy that helps brands gain new customers and keep their existing customers while building stronger, longer lasting relationships with them.
Hydrogen not only offers CLOs, but we also offer program funded and merchant funded rewards. Our powerful platform can standardize, analyze, and clean millions of pieces of data, making robust reward features easy to add for any banking, prepaid, or debit card program. This is all done through our innovative no-code platform.
Learn more about how Hydrogen can help with your Card Linked Offers and contact us today!