Card-Linked Offers – Why Retailers Should Care

Card-linked, cashback, and performance-based offers are all types of promotional incentives that retailers can use to drive customer behavior and achieve specific and measurable goals. Retailers who use these methods to attract shoppers can see the upside of increased customers and a bigger bottom line.

A recent study shows that 65% of credit and debit card users prefer to shop with brands or merchants where they are members of loyalty or rewards programs. These strategies play a role in consumer shopping habits and can positively influence retailer business.

What is a Card-Linked Offer?

Card-linked offers are digital offers from brands and retailers linked directly to a payment provider like a debit or credit card. Then the offer is redeemed by the consumer when the linked payment card is used at the point of sale.

How Does It Work?

Retailers create an offer like cash back rewards or a statement credit. Then, consumers discover offers on websites and apps that they frequent. From there, the consumer links their debit and credit cards to the website or app to earn card-based rewards. And, when the consumer pays with the linked card, they are immediately rewarded.

Some card-linked examples include bank websites, mobile banking apps, airline emails, and browser apps that display card-linked offers anywhere consumers shop and search online. One example is Shell Fuel Rewards, where customers automatically earn a 5-cents-per-gallon discount on enrollment. Then they can use linked cards at participating dining locations to receive additional discounts on food.

Why Should Retailers Take Advantage of These Programs?

The popularity of card-linked offers can be attributed to the benefits they offer consumers. More than 60% of consumers surveyed expressed their intention to use card-linked offers when purchasing travel, professional services, or groceries. Consumers said they would also use card-linked offers when buying digital streaming services, food items from restaurants, and retail products.

Overall, card-linked offers have proven to be a powerful tool for attracting new customers and driving customer loyalty. By leveraging item-level receipt data and providing personalized and relevant offers, merchants can enhance the consumer purchasing experience and increase customer engagement. Merchants and card issuers must also promote these programs and educate consumers about their benefits to maximize their effectiveness.

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