A 3-Step Approach to a Better Customer Rewards Program

There's now a much more effective way to reach the right customers with the right deals. The solution, while not obvious, is simple: partner with financial institutions to gain a 360-degree view of the customers’ spending habits and inherit the ability to put a tailored offer in front of any shopper who recently bought something from a competitor with their credit or debit card.

If it sounds too good to be true, read on. Implementation can be as easy as a ready, aim and fire scenario, with today's card-linked marketing programs enabling consumer payment data and the deployment of offers through financial channels.

Ready
With today's deals, automation is essential. From generating the initial deal to deployment to redemption at the point of sale (POS), card-linked programs streamline that entire process by electronically attaching the offer to consumers’ payment card, storing it on the account until it's redeemed at the point of purchase. There's no need to print the offer or present its digital version to the merchant, make any changes to POS systems or train employees.

Aim
At a time when nearly 80 percent of Americans report they're tired of receiving irrelevant email offers and discounts, according to a Harris Interactive survey, relevancy couldn't be more important. Simply put, consumers want discounts that meet their specific needs and wants.

Regardless of which metrics retailers seek from offers and promotional campaigns, most systems simply don't effectively align deals with customers’ buying patterns. Fortunately, programs that partner with financial institutions are different, as they have the ability to leverage this data anonymously and securely to tailor promotions based on actual consumer spending. This data can include information like what was purchased; when, where and from whom; and whether it was a repeat or first-time transaction. With this targeting, retailers can put a tailored offer in front of any shopper who spent money with a competitor in the last 30 days.

Fire
By partnering with a financial institution — enabling consumer payment data and card-linked programs — retailers can provide greater value for customers and drive sales by presenting deals to customers through their online banking channels. These platforms have created a space to engage with consumers at the exact moment they're thinking about their finances, and usage of online and mobile banking is growing.

In fact, Pew Research found that 61 percent of adults are now using the internet to do their banking, which is almost equal to the amount of adults engaging on social media networks. Additionally, six in 10 consumers expect their bank to find and offer them new ways to save money, with 63 percent of Americans at least somewhat likely to switch banks if another financial institution provided valuable, no-strings-attached offers, according to a Harris Interactive survey. With the growing popularity of online deals and their intercept with financial institutions, the opportunity for retailers to deliver offers as bank rewards is clear.

There's no question that the market for online deals is on the upswing. As technology advances continue to expand the world of commerce, retailers must take advantage of new tools for reaching and engaging consumers with this kind of card-linked marketing.

Jason Blackhurst is an emerging capabilities executive at Bank of America, and is responsible for the company's BankAmeriDeals program.