Atlanta, May 16, 2012 – Cardlytics, the pioneer of transaction-driven marketingTM in banking, announced today the release of “Cardlytics for Credit,” an integrated suite of technology and services that enable financial institutions to effectively leverage transaction marketing to strengthen relationships with their credit card customers.
“Until now, the broad category of ‘merchant-funded rewards’ for credit cards has simply not produced meaningful results for retailers or banks,” said Scott Grimes, CEO of Cardlytics. “To be a relevant and viable channel for large national and regional retailers, you must have a broad base of highly active and engaged accounts. Since most consumers use their credit cards infrequently and don’t access their accounts routinely via digital channels, it is impossible to achieve the necessary scale in credit cards alone. Because of our reach into 70 million households’ checking accounts and their associated high transaction debit card volume and frequent online access, we are well positioned to now leverage our massive scale in checking/debit to bring rich content to credit. Many of our bank clients have combined debit and credit card portfolios to extend the engagement of debit customers to their credit cards. We have continually advanced our solution to the point where we know how to make transaction-marketing effective for stand-alone credit card portfolios.”
“Retailers want to concentrate on a few channels that can most profitably grow their business, and they demand precisely measured results that can be directly attributed to the media,” said Marc Ginsberg, EVP of Merchant Services at Cardlytics. “Unlike current credit card merchant-funded propositions, customers directly engage with our media. As a result, we know definitively that every sale we generate is directly attributable to Cardlytics marketing.”
“Cardlytics for Credit” is specifically tailored to the needs of leading national and local retailers, enabling them to successfully drive increased in-store performance from their current customers while simultaneously attracting new customers. Customer engagement is reinforced by real-time geo-targeting and real-time alerts. A recent study completed by Cardlytics for a large national retailer demonstrated that more than 86% of sales reported by legacy merchant funded rewards programs are actually driven by other marketing campaigns or simply attributable to walk-in traffic. “Without direct and specific attribution, delivering cash back to these customers is not a profitable model for retailers, and we believe that the combination of our current scale along with engagement from channels such as mobile, email and ATM will finally allow retailers to profitably invest both their time and resources to targeting loyal credit card customers,“ said Ginsberg.
Similar to how sales are driven for retailers, “Cardlytics for Credit” leverages Cardlytics’ highly responsive marketing channels to fundamentally improve the performance of the credit portfolio far more efficiently than current marketing channels. Specific programs are available to expand card usage to new verticals, drive usage of inactive cards and increase card spend.
“For years, we have seen our transaction-driven marketing programs crush the performance of traditional channels used by retailers,” said Lynne Laube, President of Cardlytics. “What is exciting now is to witness how well transaction-marketing addresses the challenges issuing banks face in improving portfolio performance.”
“Cardlytics for Credit” is currently available for all credit portfolios, with the first programs going live this summer.
Cardlytics is the pioneer and leader of the cutting edge field of Transaction-Driven MarketingTM, expected to grow into a multi-billion industry in the US over the next four years, according to the Aite Group. The company's unique advertising platform enables banks to deliver rich, relevant rewards to its customers based on purchasing history while fully protecting their privacy. The platform is entirely merchant-funded with advertisers targeting consumers based on spending patterns: where, how much and how frequently they spend at a store and in the broader retail category. Since its founding in 2008, Cardlytics has been a leader of innovation with recent accolades including being named one of the 100 most innovative private companies in the world by Red Herring. The company has also raised over $65MM in venture capital from leading investors, in both Silicon Valley and Boston, and a strategic investment from the world’s leading loyalty company, Aimia. For more information about Cardlytics, visit http://www.cardlytics.com.