Press Releases

October 27, 2022

Cardlytics Announces Timing of Its Third Quarter 2022 Financial Results Conference Call and Webcast

Atlanta, GA – October 18, 2022 – Cardlytics, Inc., (NASDAQ: CDLX), an advertising platform in banks’ digital channels, today announced that its third quarter ended September 30, 2022 financial results will be released on Tuesday, November 1, 2022, after market close. The company will host a conference call and webcast at 5:00 PM (ET) / 2:00 PM (PT) to discuss the company’s financial results.

A live audio webcast of the event will be available on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. A live dial-in will be available after registering at this link. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on November 8, 2022 on the Cardlytics Investor Relations website at http://ir.cardlytics.com/.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Palo Alto, Los Angeles, New York, and London.  Learn more at www.cardlytics.com.

January 24, 2023

Cardlytics Announces Inducement Grant Under Nasdaq Listing Rule 5635(c)(4)

ATLANTA, GA – January 23, 2023 - Cardlytics (NASDAQ: CDLX), an advertising platform in banks’ digital channels, today announced that Cardlytics’ Board of Directors granted 350,000 restricted stock units of Cardlytics to Amit Gupta, Cardlytics’ newly hired Chief Operating Officer. The foregoing restricted stock units were granted as a material inducement to employment with Cardlytics in accordance with Nasdaq Listing Rule 5635(c)(4) and were granted under the Cardlytics 2022 Inducement Plan (the “2022 Inducement Plan”). 50% of the restricted stock units shall vest on the first anniversary of the grant date and the remaining 50% of the restricted stock units shall vest quarterly over the following year, subject to Gupta’s continuous service with Cardlytics as of each respective vesting date. The restricted stock units are subject to the terms and conditions of the 2022 Inducement Plan.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Palo Alto, Los Angeles, New York, and London. Learn more at www.cardlytics.com.

Contacts:

Public Relations:

Robert Robinson

pr@cardlytics.com

Investor Relations:

Robert Robinson

ir@cardlytics.com

January 24, 2023

Cardlytics Appoints Amit Gupta as Chief Operating Officer

ATLANTA, GA – January 23, 2022 – Cardlytics (NASDAQ: CDLX), an advertising platform in banks’ digital channels, today announced the appointment of Amit Gupta as its Chief Operating Officer, reporting directly to Karim Temsamani, Chief Executive Officer.

Effective today, Gupta will lead Cardlytics’ overall operations, strategy, and business analytics, where he will closely align with sales, product, and engineering leadership to deliver an optimized platform that exceeds both advertiser and partner expectations. In addition, Gupta will serve as the general manager of Bridg, where Cardlytics can leverage his experience running and scaling businesses. Amit Jain, current CEO of Bridg, will work closely with Gupta as he transitions out of the business over the next several months.

“Cardlytics is delighted to have attracted such a thoughtful, experienced and operationally strong executive,” said Temsamani. “Amit and I worked together for several years at Stripe, where he always impressed me with his strategic and technical abilities. I look forward to resuming our partnership as we optimize and grow the potential of the Cardlytics business."

Gupta joins Cardlytics from Stripe where he was Head of Strategy and Operations for Global Partnerships, responsible for work with banks, networks, and payment methods. Before Stripe, Gupta was Director of Strategy, New Products, and Operations for Google’s Geo division, leading product and engineering execution and strategy for popular consumer and business products like Google Maps, Local Search, Food, Maps Enterprise Platform, and SMBs. Prior, Gupta founded and was the CEO of a series of startups. He started his career at Booz Allen Hamilton, where he was promoted to Partner in the Technology practice working with clients across media, financial services, and consumer products.

“I am extremely excited to join the Cardlytics team. My background in both advertising and financial technology gives me a unique perspective on Cardlytics’ current capabilities and future product offerings. The product roadmap ahead makes now the perfect time to focus on operational excellence by optimizing the efficiency of the core platform and unlocking the potential of the promising Bridg business. I’m looking forward to helping the team execute on our goals and harness the full power of the platform in such a pivotal moment,” said Gupta.

Gupta holds a Bachelor of Science, Electrical Engineering from The Ohio State University and a Master of Business Administration from the NYU Stern School of Business. He will be based in Cardlytics’ Palo Alto office.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in Palo Alto, New York, Los Angeles, and London. Learn more at www.cardlytics.com.

Cautionary Language Concerning Forward-Looking Statements

This press release contains "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995, including but not limited to future growth and delivery of an optimized platform. These forward-looking statements are made as of the date they were first issued and were based on current expectations, estimates, forecasts and projections as well as the beliefs and assumptions of management. Words such as "expect," "anticipate," "should," "believe," "hope," "target," "project," "goals," "estimate," "potential," "predict," "may," "will," "might," "could," "intend," or variations of these terms or the negative of these terms and similar expressions are intended to identify these forward-looking statements. Forward-looking statements are subject to a number of risks and uncertainties, many of which involve factors or circumstances that are beyond our control.

Our actual results could differ materially from those stated or implied in forward-looking statements due to a number of factors, including but not limited to the risks detailed in the “Risk Factors” section of our Form 10-Q filed with the Securities and Exchange Commission on November 1, 2022 and in subsequent periodic reports that we file with the Securities and Exchange Commission. Past performance is not necessarily indicative of future results.

The forward-looking statements included in this press release represent our views as of the date of this press release. We anticipate that subsequent events and developments will cause our views to change. We undertake no intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.

Contacts:

Public Relations:

Robert Robinson

pr@cardlytics.com

Investor Relations:

Robert Robinson

ir@cardlytics.com

November 1, 2022

Cardlytics Announces Third Quarter 2022 Financial Results

Atlanta, GA – November 1, 2022 – Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the third quarter ended September 30, 2022. Supplemental information is available on the Investor Relations section of Cardlytics' website at http://ir.cardlytics.com/.

“We delivered solid double-digit growth despite the serious challenges present in the economy,” said Karim Temsamani, CEO of Cardlytics. “While the economy may be uncertain, I believe there is inherent resiliency in platforms that prove return on ad spend, and I am positive that we can grow profitably. There is a large opportunity ahead of us, and we will be disciplined in Q4 and beyond as we prioritize our goals and position the company well for the next ten years.”

“Our results this quarter were in line with our expectations given our clients' concerns about the economy,” said Andy Christiansen, CFO of Cardlytics. “There is a wide range of outcomes for Q4, but our highest priority is meeting our profitability and cash flow goals for 2023. We are focused on taking the necessary steps to ensure we can control our destiny and achieve our long-term goals.”

Third Quarter 2022 Financial Results

  • Revenue was $72.7 million, an increase of 12% year-over-year, compared to $65.0 million in the third quarter of 2021.
  • Billings, a non-GAAP metric, was $110.4 million, an increase of 12% year-over-year, compared to $98.4 million in the third quarter of 2021.
  • Gross profit was $26.0 million, an increase of 6% year-over-year, compared to $24.5 million in the third quarter of 2021.
  • Adjusted contribution, a non-GAAP metric, was $35.1 million, an increase of 11% year-over-year, compared to $31.6 million in the third quarter of 2021.
  • Net income attributable to common stockholders was $6.3 million, or $0.19 per diluted share, based on 33.3 million fully diluted weighted-average common shares, compared to a net loss attributable to common stockholders of $(44.5) million, or $(1.35) per diluted share, based on 33.1 million fully diluted weighted-average common shares in the third quarter of 2021.
  • Non-GAAP net loss was $(16.5) million, or $(0.50) per diluted share, based on 33.3 million fully diluted weighted-average common shares, compared to non-GAAP net loss of $(11.0) million, or $(0.33) per diluted share, based on 33.1 million fully diluted weighted-average common shares in the third quarter of 2021.
  • Adjusted EBITDA, a non-GAAP metric, was a loss of $(12.7) million compared to a loss of $(5.2) million in the third quarter of 2021.

Key Metrics

  • Cardlytics MAUs were 184.7 million, an increase of 8%, compared to 170.6 million in the third quarter of 2021.
  • Cardlytics ARPU was $0.36 in the third quarter of 2022 and 2021.
  • Bridg ARR was $22.1 million in the third quarter of 2022.

Definitions of MAUs, ARPU and ARR are included below under the caption “Non-GAAP Measures and Other Performance Metrics."

Fourth Quarter 2022 Financial Expectations

Cardlytics anticipates billings, revenue, and adjusted contribution to be in the following ranges (in millions):

 Q4 2022 GuidanceBillings(1)$120.0 - $132.0Revenue$80.0 - $90.0Adjusted contribution(2)$38.0 - $44.0

  1. A reconciliation of billings to GAAP revenue on a forward-looking basis is presented below under the heading "Reconciliation of Forecasted GAAP Revenue to Billings."
  2. A reconciliation of adjusted contribution to GAAP gross profit on a forward-looking basis is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the items excluded from this non-GAAP measure.

Earnings Teleconference Information

Cardlytics will discuss its third quarter 2022 financial results during a teleconference today, November 1, 2022, at 5:00 PM ET / 2:00 PM PT. A live dial-in will be available after registering at http://ir.cardlytics.com/. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on November 8, 2022 on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. Following the completion of the call, a recorded replay of the webcast will be available on Cardlytics’ website.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, Los Angeles, San Francisco, Austin, Detroit and Visakhapatnam. Learn more at www.cardlytics.com.

August 1, 2022

Cardlytics’ Back-to-School Trend Analysis Shows Impact of Omnichannel on Consumer Spend and Retention

Analysis offers insight from previous back-to-school seasons ahead of the second-largest shopping event of the year

ATLANTA – August 1, 2022 – Cardlytics (NASDAQ: CDLX) released its annual back-to-school (BTS) trend analysis, which underscores the importance of providing consumers with an omnichannel shopping experience to maximize consumer loyalty. The analysis, which comes as 62 percent of consumers start their back-to-school shopping this month, examines previous BTS spending behaviors for a sense of what to expect during the 2022 BTS shopping season amid the backdrop of rising inflation.

Key Takeaway

Notably, the analysis found that consumers who shop across channels (e.g., in-store, online, apps, etc.) spend more. In 2021, shoppers using just one channel spent an average of $900 during the back-to-school shopping season, but those who purchased items across multiple channels spent over $1,000. Even as customers spent more across both on and offline channels in 2022, in-store shopping remains the preferred method for most. It also shows that in-store sales are slowly returning to pre-COVID levels at 63 percent of total spend in 2021, compared to 61 percent in 2020, and 73 percent in 2019.

As shoppers gear up for the 2022 season, inflation may drive these figures higher due to spend per purchase, but that does not necessarily equate to increased purchases in any given category. Cardlytics’ Q1 2022 State of Spend report saw a slowdown in spending toward the end of Q1 as consumers made adjustments to accommodate increased costs in goods, food, gas, and housing brought on by the highest inflation seen since the 1980s. This could continue into the BTS and holiday 2022 seasons as customers focus on purchasing essentials and possibly engage in more one-stop shopping.

“Convincing your customers to convert on both online and offline channels is essential to maximizing incremental sales and customer loyalty,” said Nate Bucholz, Cardlytics’ vice president of DTC, Subscription, and Retail. “Our insights continue to show that people shopping across a brand’s available channels spend more than those who shop in only one channel. And they are more likely to return. Looking at your customer base through the lens of the channel they shop can help you get the most impact from your marketing spend. I would encourage brands to offer the best sales and cashback rewards now to acquire and retain customers as they head into the holidays, which is the last big shopping season of the year.”

Cardlytics Back-to-School Infographic outlines how to maximize the second-largest shopping event of the year.

Click here or on the image above to open the full-size infographic in a new window.

Additional Trend Highlights

The back-to-school season is the second largest shopping event of the year behind the December holiday season, making up 15 percent of annual consumer spending. The analysis includes sales for apparel, home décor, office supplies, sporting goods, shoes, and mass merchandiser, finding that:  

  • Overall spend was flat with only a 1.2 percent increase between 2020 and 2021.  This is likely due to declines in customer volume and total purchases – defined as the number of actual customers making purchases in these categories. This trend may continue through the 2022 BTS season with minimal growth as customers tighten their wallets and only increase their spending in response to increased prices.
  • Apparel had a strong 2021 back-to-school season as parents rushed to refresh wardrobes for in-person schooling. The data showed that spend increased by 24.3 percent year-over-year in this category, driven by strong customer and purchase growth. Spend increases in this category were due to genuine growth and are not a byproduct of current inflation. It is predicted that due to tightening economic conditions and the fact that people spent significantly more last year than the year before, it is likely that there will be a flat or negative spend growth for 2022.
  • Shoes and children’s apparel saw significant increases as well last year. Shoes had a nearly 30 percent year-over-year increase while children’s apparel saw a 13.2 percent jump. But, shoe companies are bracing for weaker sales for the latter half of this year, which could impact overall growth for this category in 2022.
  • Consumers cut back on home and office supplies in 2021, and this trend has a strong chance of continuing as more children return to classrooms in 2022. Home and office supply spending was down 8 and 8.8 percent, respectively, as fewer purchases were needed for homeschooling and to counterbalance heavy spending in previous years.
  • Department stores also experienced greater sales with increases across volume of shoppers, number of purchases, and spend per purchase. Year-over-year spend went up by 22.4 percent. Spending in this category may also feel the impact of inflation, particularly when it comes to spend per purchase – while consumers may have less items in their cart, this may be offset by increased costs for each item.

The review covers an eight-week period beginning the second weekend of July and lasting through Labor Day. Early insights from the first two weeks of July 2022 show that spend is down 8.4 percent YoY as customers brace for economic uncertainty. This points to a decline in the number of customers and purchases resulting in a sluggish start this season across all categories. To view the full trend analysis, visit: https://www.cardlytics.com/blog/customer-loyalty-is-the-battleground-for-back-to-school/

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, Los Angeles, San Francisco, Austin, Detroit, and Visakhapatnam. Learn more at www.cardlytics.com.

August 2, 2022

<strong>Cardlytics Announces Second Quarter 2022 Financial Results</strong>

Atlanta, GA – August 2, 2022 – Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the second quarter ended June 30, 2022. Supplemental information is available on the Investor Relations section of Cardlytics' website at ir.cardlytics.com.

“I am pleased with our growth in the first half of the year despite the growing pressure macro conditions are having on consumer spending and ad budgets,” said Lynne Laube, CEO & Co-Founder of Cardlytics. “We are also pleased with the progress we are seeing in the Bridg acquisition and expect to see further proof points in future quarters. The combination of the Cardlytics and Bridg data sets has us on the cusp of being able to scale the business beyond our core platform, while our focus on financial goals will allow us to control our own destiny moving forward.”

“We are committed to meeting our adjusted EBITDA and free cash flow goals in 2023, and we’re taking several proactive steps to reduce our cost structure in recognition of the lower-growth environment we are entering,” said Andy Christiansen, CFO of Cardlytics. “We expect year-over-year growth of approximately 10 to 15% in the back half of 2022, and I believe we can navigate a lower growth environment with minimal impact on the long-term prospects of the business.”

Second Quarter 2022 Financial Results

  • Revenue was $75.4 million, an increase of 28% year-over-year, compared to $58.9 million in the second quarter of 2021.
  • Billings, a non-GAAP metric, was $107.7 million, an increase of 26% year-over-year, compared to $85.3 million in the second quarter of 2021.
  • Gross profit was $27.0 million, an increase of 16% year-over-year, compared to $23.2 million in the second quarter of 2021.
  • Adjusted contribution, a non-GAAP metric, was $35.1 million, an increase of 19% year-over-year, compared to $29.6 million in the second quarter of 2021.
  • Net loss attributable to common stockholders was $(126.3) million, or $(3.75) per diluted share, based on 33.6 million fully diluted weighted-average common shares, compared to a net loss attributable to common stockholders of $(47.3) million, or $(1.43) per diluted share, based on 33.0 million fully diluted weighted-average common shares in the second quarter of 2021.
  • Non-GAAP net loss was $(21.7) million, or $(0.65) per diluted share, based on 33.6 million fully diluted weighted-average common shares, compared to non-GAAP net loss of $(12.8) million, or $(0.39) per diluted share, based on 33.0 million fully diluted weighted-average common shares in the second quarter of 2021.
  • Adjusted EBITDA, a non-GAAP metric, was a loss of $(15.8) million compared to a loss of $(5.7) million in the second quarter of 2021.

Key Metrics

  • Cardlytics MAUs were 179.9 million, an increase of 7%, compared to 167.6 million in the second quarter of 2021.
  • Cardlytics ARPU was $0.38, an increase of 12%, compared to $0.34 in the second quarter of 2021.
  • Bridg ARR was $21.8 million in the second quarter of 2022.

Definitions of MAUs, ARPU and ARR are included below under the caption “Non-GAAP Measures and Other Performance Metrics.

Earnings Teleconference Information

Cardlytics will discuss its second quarter 2022 financial results during a teleconference today, August 2, 2022, at 5:00 PM ET / 2:00 PM PT. A live dial-in will be available after registering at this link. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on August 9, 2022 on the Cardlytics Investor Relations website at ir.cardlytics.com. Following the completion of the call, a recorded replay of the webcast will be available on Cardlytics’ website.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, Los Angeles, San Francisco, Austin, Detroit and Visakhapatnam. Learn more at www.cardlytics.com.

Research & Insights

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"If the price is right"

New Cardlytics State of Spend study reveals tentative recovery in consumer confidence

After two years of post-pandemic recalibration, UK consumers are shopping again – just not like they used to. 

The latest data from Cardlytics reveals a retail landscape defined less by indiscriminate demand and more by considered choice. 

While spending remains resilient in many categories, shoppers are now clearly applying more scrutiny to how and where they spend. Value, convenience, and perceived quality are under the microscope, and if expectations aren’t met, consumers are pulling back.

This divergence is playing out differently across the retail sector. Categories like high-street fashion and beauty are holding strong, buoyed by brand loyalty, reviving high streets, and the occasional feel-good purchase. 

But grocery and household tell a more precarious story, where price sensitivity and shifting shopping habits are forcing brands to work harder and smarter to keep customers loyal. 

Whether shopping in-store, online, or through delivery apps, today’s consumer expects more than just competitive pricing. 

They’re looking for value that feels personal. For retailers, the challenge is clear: speak directly to customer priorities, or risk being left behind.

Retail: A resilient core – but rewards go to relevance

Fashion and beauty continue to defy broader economic headwinds. Spending on make-up and beauty products surged by 19% year-on-year in Q1 2024, and growth has carried into 2025, albeit at a more modest 5%. The number of transactions in the sector has outpaced spend, suggesting that while shoppers remain engaged, they are consciously managing budgets – opting for smaller, more frequent purchases that still offer a sense of indulgence. It’s a pattern that reflects the so-called “lipstick effect”: the tendency for consumers to turn to affordable luxuries during uncertain times.

High street fashion is also faring well. After growing 9% in 2024, the category recorded a further 5% uptick in early 2025, driven by established brands with a strong physical presence and a loyal customer base. This comes despite recent cyber attacks on major retailers, which - in good news for the sector - hasn’t deterred shoppers as of yet. Rather than stop spending, it just shifted it - as shoppers showed they are loyal to their habits over individual brands. 

Online fast fashion, meanwhile, showed little momentum through 2024, but increased sharply in Q1 2025 with a 13% rise in spend. Discount-led promotions and trend-led buying may be drawing cautious consumers back to basket - but this trend remains nascent stages.

However, not all categories are experiencing this trend. Department stores saw a 4% drop in spend in 2024, with a further 5% decline in 2025. Transactions have followed the same downward trajectory, pointing to a broader shift away from traditional department store formats. As shoppers prioritise experience, value and, crucially, brand alignment, department stores may be losing relevance to more focused propositions.

Cardlytics Analysis

Retailers that combine physical presence with a strong sense of brand identity continue to perform strongly. But brands can no longer rely on habitual customer loyalty. Our data shows clear momentum for brands that are giving customers a feel-good factor to shopping, whether that be through price, experience or personalisation. 

Case Studies

  • A leading e-commerce & retail brand partnered with CDLX to drive new customers and ensure incremental revenue, by leveraging CDLX’s pay-per-performance channel to incentivise spend from competitors via cash back reward. The campaign delivered £1m revenue across 20K redemptions, captured 27% SoW across redeemers from competitors. Across the “New” segment, CDLX captured 77% SoW from competitors
  • A major European health & wellness brand partnered with CDLX to acquire new customers, re-engage and retain lapsed and existing customers, and drive sales over a six week period in Q1 2025. Leveraging our proprietary transaction data into data-driven marketing, the campaigns drove over £2M Revenue and an average ROAS of £24.41. During that period, the brand increased share of wallet by 52%, crucially gaining ground on key competitors in the health and wellness industry.

Grocery: Essential, but under pressure 

Supermarkets remain a staple of consumer spending, but the data tells a story of growing caution. After recording 9% growth in 2024, so-called ‘big grocers’ saw a 3% fall in spend in the first quarter of 2025. The number of transactions have held steady however, suggesting that shoppers are still showing up – they’re just spending less when they do.

This theme appeared prominently across convenience grocery. 

Spend rose by 11% in 2024, before dipping 4% this year. Unlike the supermarkets, however, transaction volumes declined modestly, pointing to a broader behavioural shift. Shoppers appear to be planning more carefully, opting for fewer top-up trips and returning to larger, weekly shops.

In contrast, grocery delivery continued to grow, extending its gains from last year. After a 16% rise in 2024, the category saw a further 13% increase in early 2025, with both the average transaction value and number of orders increasing. Once considered a pandemic-era habit, online grocery ordering now looks like a lasting behavioural shift – particularly for customers who value predictability, convenience and the ability to budget in advance.

Cardlytics Analysis

The return of the big weekly shop, combined with the decline in spontaneous convenience visits, signals a shift towards planned, value-driven behaviour. For grocers, this is both a challenge and an opportunity. 

The ability to personalise offers, reinforce loyalty, and remove friction at checkout is becoming critical, particularly as shoppers become more deliberate in how and where they spend. Cashback rewards can help bridge the gap between price expectations and perceived value, especially when tailored to individual behaviours. Delivery providers are responding well to this shift, offering consistent, low-surprise experiences that support budgeting and convenience. A similar customer-first approach is increasingly expected in-store, where value and planning now take precedence over impulse.

Case Study

A leading food delivery platform and CDLX partnered to drive new customer acquisition and incremental revenue, using cashback rewards to incentivise spend from competitors.

The campaigns delivered 119K redemptions and £2.9M in revenue, capturing 44% share of wallet across lapsed and acquisition segments. Incremental revenue from the "New" customer segment alone reached £470K, with repeat customers generating an additional £7.2M in spend post-campaign.

Household: Still spending, but pulling back

After a period of steady post-pandemic investment in the home, household spending is beginning to cool. While consumers are still investing in their living spaces, they are doing so with increasing caution – prioritising essential upgrades over discretionary improvements. Across all categories, the number of transactions has remained broadly stable, but average spend is softening – indicating a shift towards smaller, more deliberate purchases.

This was the case for DIY, which saw spend increase modestly by 4% in 2024, before falling 1% in early 2025. Transaction volumes held steady, but average spend edged down – showing that consumers are now focusing on smaller-scale fixes or improvements, rather than large projects.

Value homeware followed a similar pattern, emphasising the importance of affordability in the household goods sector. While total spend softened, the number of transactions held firm, showing a consumer preference for incremental upgrades that deliver a sense of progress without straining budgets. Elsewhere, spending on garden and outdoor products declined in early 2025, reflecting a clear pivot towards core priorities, with seasonal or aspirational purchases falling by the wayside.

Spend for electricals declined by 6% in 2025, alongside a 7% fall in transactions. But average spend rose 6%, suggesting a more selective, quality-focused approach to purchasing habits. Consumers appear to be waiting longer between purchases, but when they do buy, they are choosing higher-spec replacements – reinforcing the idea that perceived value, rather than just price, is driving decision-making.

Cardlytics Analysis

In the household sector, the rules of engagement have changed. Big-ticket spending is cooling, but our data shows that consumers are still willing to invest when they feel the value is tangible, especially on higher-spec replacements in categories like electricals. 

Cashback rewards are proving particularly effective in this space, encouraging considered purchases while reinforcing the idea of getting more for less. Retailers focused on affordability are outperforming their lifestyle-led counterparts. 

The signal from consumers is clear: value and functionality matter more than non-essential or lifestyle-led propositions. Brands that demonstrate they understand their customers’ priorities - and reinforce that through personalised offers and targeted cashback - will go further in earning loyalty and driving conversion.

Case Study

A leading DIY brand and CDLX partnered to improve incremental sales, drive new customers and repeat visits as well as deepen loyalty with existing customers. Using CDLX’s proprietary purchase intelligence data, the campaigns identified and targeted customers with personalised value-driven offers. 

Over the six-week period, over £800k in incremental sales were driven. The brand has seen 39% of campaign customers return to shop again, and captured 60% share of wallet from key competitors during that time.

Navigating a more cautious consumer landscape

Our analysis for the first four months of 2025 painted a clear picture of an increasingly value-conscious consumer. While there were bright spots — such as sustained demand for affordable luxuries and resilient online grocery growth — the broader retail environment showed signs of growing caution. The data indicated that a softening in consumer confidence could be on the horizon — something that recent retail sales figures from May have now confirmed, with sharp drops in sales linked to rising inflation and consumer cutbacks.

The opportunity for brands lies in how they respond. Our data shows that personalisation, value-driven propositions, and transparent rewards are more important than ever. Shoppers are still spending, but they are making deliberate choices about where they see true value. Cashback rewards and tailored offers can play a crucial role in reinforcing loyalty and driving conversion during this period of increased scrutiny.

For retailers, the message is clear: relevance, value, and trust must be at the heart of every interaction. Businesses that consistently prove they can deliver meaningful value at the right price will be best positioned to secure customer loyalty and drive sustainable growth in the uncertain months ahead.

Airlines: Unpacking the State of Customer Loyalty

Introduction

Previously, Cardlytics defined loyalty as a consumer’s preference for a merchant over its competitors.* We analyzed billions in spending across six industries to measure customer loyalty and spending patterns with both loyal and non-loyal customers.

But customer behavior isn’t fixed—customers shift between loyalty segments over time. Understanding these shifts helps identify churn and informs strategies to nurture relationships and move customers to higher loyalty segments. In our Loyalty Movement Report, we dive into the Airline category to better understand engagement over time by analyzing more than £40B in consumer spend behavior.

Findings:

We looked into purchase data at all Airlines in the UK over the last 8 quarters (Q1-23 through Q4-24) on a quarter by quarter basis to see whether even the “most loyal” customers showed changes in their purchase behavior.

Segment Movement

Of the portion of each customer segment that is non-lapsed, those that are loyal to a specific airline show the strongest brand retention - 31% remain loyal quarter over quarter. In contrast, Tied and Prefer customers demonstrate greater variability in behaviour, with only 4% and 12% respectively maintaining their previous preference.

Loyal customers tend to remain consistent in their airline choice, likely driven by the strength of airline loyalty programmes and exclusive incentives. However, Tied and Prefer customers show clear signs of behaviour fluidity, highlighting a key opportunity for targeted campaigns to drive conversion toward brand loyalty.

Lapsed behaviour is high across all segments—65% of previously loyal customers lapsed, and similar rates are observed among Tied (63%) and Prefer (67%) segments. This reflects typical airline purchasing patterns, where customer loyalty can be disrupted by pricing, availability, or external factors, regardless of prior loyalty classification.

Airlines Leaky Bucket 

Airlines are acquiring new customers yet even more existing customers are moving into the lapsed tier. This cycle is expected based on typical consumer behavior for airline travel quarter over quarter but reinforces need to nurture existing relationships.

Takeaways:

Airline marketers’ inherent focus on nurturing loyal customers is well-know and consumer spend data show it’s working - Loyal customers tend to stay loyal. But huge opportunity exists with customers who are not loyal to any specific airline and could be lured through greater incentives. To stay top of mind, marketers must continuously nurture relationships, understand customer needs, and offer seamless experiences. To foster loyalty with your customers, consider these recommendations:

  • Use an “always on” strategy to keep customers engaged, regardless of purchase frequency.
  • Regularly update/refine customer segments and adjust reward offers to keep them engaged.
  • Use targeted campaigns to boost loyalty and revenue.

Cardlytics can deliver a comprehensive Customer Loyalty Analysis with insights into customer behavior and movement across defined loyalty segments. Contact us for more details.

Apparel: Stop Taking Customer Loyalty for Granted


Introduction

In our previous report, Redefining Customer Loyalty, Cardlytics defined loyalty as a consumer’s preference for a merchant over its competitors. We analyzed $160B in spending across six industries to measure customer loyalty and spending patterns with both loyal and non-loyal customers.

But customer behavior isn’t fixed—customers shift between loyalty segments over time. Understanding these shifts helps identify churn and informs strategies to nurture relationships and move customers to higher loyalty segments. In our Loyalty Movement Report, we dive into customer behavior in the Apparel category to better understand engagement over time by analyzing more than $17B in consumer spend behavior.*

Apparel Category Loyal Customers

On average, 61% of a merchant’s customers are not actually loyal. But the loyal segment has a much higher share of wallet (85%) than a not loyal segment (21%).

Top Customers (top 10% of most frequent transactors) show a +6 point uptick as loyal vs not loyal customers. But the loyal customer segment shows more than 3x higher share of wallet.

Findings

We looked into purchase data at all Apparel brands in the US over the last 8 quarters (Q1-23 through Q4-24) on a quarter by quarter basis to see whether even the “most loyal” customers showed changes in their purchase behavior.

Apparel Loyalty Movement

Overall, quarter over quarter, 41% of customers tend to remain in their existing segments while 16% increase or decrease their loyalty to a merchant. Yet there is much more extensive customer loyalty movement within the “not loyal” segments. 

Segment Movement

While all segments show purchase behavior movement, the Tied segment (part of Not Loyal customers) shows the most movement - both up (29%)  and down (29%) - into other segments. 

Apparel Leaky Bucket

Apparel brands are acquiring new customers yet even more existing customers are moving into the lapsed tier. This cycle can be reversed by continuing to nurture existing customers.

Diving deeper into the individual segments tells us:

  • Loyal customers and those that Prefer the competition are the most rigid (with 57% and 58% staying the same, respectively). Those customers that are Tied have the greatest propensity for a behavior change (with only 18% staying the same).
  • While the most Loyal customers show a 25% lapsed rate at similar levels as Tied, this is most likely not connected to churn vs connected to cadence of shopping behavior (maybe they don’t buy clothes every that frequently).

Definitions of Customer Segments


Loyal Customers

Loyal:
Only shop with a specific brand, or have the highest share of wallet with a given brand and relative rank is lower than all other brands in consideration set

Not Loyal Customers
Tied
: Similar relative ranks to 2 or more brands regardless of share of wallet ranking
Prefer: Lower share of wallet and higher rank than other brands in their consideration set
Lapsed: Shopped historically but do not shop currently, as defined by the analysis time period
New: Shop currently but have not shopped historically, as defined by the analysis time period

Takeaways

Marketers know it’s more costly to acquire or re-acquire customers than to keep existing ones engaged. When brands neglect current customers, they risk losing them and undoing past investment yet the reasons why a customer might “lapse” is different depending upon their loyalty tier.  Loyalty is fragile and demands ongoing effort as competition is always close by. To stay top of mind, marketers must continuously nurture relationships, understand customer needs, and offer seamless experiences. To foster loyalty with your customers, consider these recommendations:

  • Use an “always on” strategy to keep customers engaged, regardless of purchase frequency.
  • Regularly update/refine customer segments and adjust reward offers to keep them engaged.
  • Use targeted campaigns to boost loyalty and revenue.

Cardlytics can deliver a comprehensive Customer Loyalty Analysis with insights into customer behavior and movement across defined loyalty segments. Contact us for more details.

* For this report, we've selected the entire Apparel category in our data, collectively representing $17bn in annual card spend. This sample differs from the previous Customer Loyalty Analysis report.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a commerce media platform, powered by our publishers’ first-party purchase data, that makes commerce smarter and more rewarding for everyone. We offer a range of solutions to help advertisers and publishers, including financial institutions, grow and strengthen customer loyalty. With visibility into approximately half of all card-based transactions in the U.S. and a quarter in the U.K., Cardlytics enables advertisers to engage consumers at scale and drive incremental sales through our industry-leading financial media network. Publisher partners can enhance their platforms with relevant and personalized offers that improve the shopping experience for their customers. Cardlytics also offers identity resolution capabilities through Bridg, which helps convert anonymous shoppers into known and reachable customers. Headquartered in Atlanta, Cardlytics has offices in Menlo Park, Los Angeles, Champaign, New York and London. Learn more at www.cardlytics.com or follow us on LinkedIn.

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