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Card-Linked Offers Tap $115B Market

By implementing card-linked offer programs, retail companies can gain automatic access to more than $115 billion that U.S. consumers spend annually during 1.7 billion transactions, using credit, debit and prepaid cards, according to Aite Group research.

By 2015, Aite Group estimates that retail companies participating in card-linked offers will be able to access at least 467 million different consumer accounts.

Unlike Daily Deals, card-linked offers require no paper vouchers or manual tracking. Card members are enrolled automatically, receive offers from their trusted banks and card issuers, and redeem offers just by swiping their cards.

To participate, merchants fund offers — such as cash back, points or miles — on eligible consumers transactions, through a card-linked advertising network. On the back end, banks, credit-card issuers and payment processors complete the transactions.

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Because participation is automatic, consumers view card-linked offers as fortuitous events, rather than effort-laden activities — like Daily Deals — which can often result in less-than-satisfactory outcomes. In fact, due to a decrease in customer satisfaction and interest, the Daily Deal industry’s total revenue dropped 7% in July 2011, according to Yipit.

Benefits of card-linked deals can include increased brand awareness, larger average order size, new sales in specific store locations, greater market share and increased shopping trips.

In an upcoming webinar, on Wednesday, October 5, Aite Group Senior Analyst Madeline Aufseeser will join Jim Douglass from Cartera Commerce to talk in detail about the trends driving the growth of card-linked deals and how to implement a program. Registration information is available at this link: The New Deal For In-Store Marketers.

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