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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Go Go

In the ever-evolving landscape of advertising, brands are constantly seeking innovative and effective ways to connect with new customers and drive sales. One increasingly powerful tool gaining significant traction is the card-linked offer (CLO). This unique approach to customer acquisition leverages real-time purchase data to deliver targeted offers directly to consumers through their payment cards, creating a seamless and impactful experience.

CLOs are rapidly becoming a key driver for both online and in-store transactions. Their effectiveness stems from the ability to tap into actual consumer spending habits, providing advertisers with a level of precision and insight often unmatched by traditional channels. By analyzing past customer purchase behavior, brands can identify and target high-value, in-market audiences with relevant offers, fostering a higher likelihood of conversion and repeat business.

What Makes CLOs a Game-Changer?

Compared to conventional performance marketing tactics, CLOs offer several distinct advantages:

  • Data-Driven Precision: CLOs provide access to rich, deterministic purchase data, eliminating the reliance on probabilistic estimations. This allows for highly accurate targeting of specific consumer segments based on their actual spending patterns.
  • Measurable Incrementality: One of the most compelling benefits of CLOs is the ability to accurately measure the incremental impact of marketing campaigns. By establishing clear test and control groups based on historical purchase data, advertisers can gain a true understanding of the uplift generated by their offers.
  • Fraud-Free and Brand-Safe Environment: Operating within the secure infrastructure of financial institutions, CLOs offer a 100% bot and fraud-free environment, ensuring that advertising spend reaches genuine consumers.
  • Omnichannel Reach: CLOs are effective in driving both online and in-store sales, providing a unified approach to reaching consumers regardless of their preferred shopping method. This omnichannel capability is crucial in today's interconnected marketplace.

The Evolution of CLOs: Trends Shaping the Future

The landscape of card-linked offers is continuously evolving, driven by advancements in technology and a deeper understanding of consumer behavior. Key trends shaping the future of CLOs include:

  • Enhanced Personalization: Leveraging the power of machine learning, CLOs are becoming increasingly sophisticated in delivering hyper-personalized offers tailored to individual consumer preferences and predicted future needs.
  • Deeper Data Integration: The integration of CLO platforms with CRM systems and data connectivity partners enables advertisers to layer their own first-party data with transaction insights, leading to even more refined targeting and a holistic view of their customers.
  • Expansion into New Verticals: While traditionally strong in sectors like dining, retail, and travel, CLOs are expanding their reach into new and unexpected industries like the auto industry, demonstrating their versatility and broad applicability.

Building Brand Loyalty Beyond the Transaction

The power of CLOs extends beyond simply driving a single purchase. By strategically utilizing targeted offers and understanding customer behavior, brands can foster long-term loyalty. CLOs enable businesses to re-engage lapsed customers, incentivize repeat purchases, and cultivate stronger relationships with their most valuable consumers.

Cardlytics and Qualtrics recently partnered to survey shoppers and evaluate the perspective of customers who leverage card-linked offers. Unsurprisingly, the survey found that CLOs create a more rewarding experience for shoppers and can act as that critical tipping point to influence purchase decisions.

In fact, the data shows customers spend more with card-linked offers in-hand:

  • 60% of customers engage more with card-linked offers when their finances are tight
  • 64% agree that having card-linked offers encourages them to spend more per transaction
  • 72% of customers are more likely to spend with a brand that offers card-linked rewards 

Integrating CLOs Into Your Advertising Strategy

While CLOs offer significant potential, advertisers must understand how they fit into their broader strategy. As the lines between traditional affiliate marketing and CLOs become increasingly blurred through greater network integration, a unified approach is emerging. However, it's crucial to recognize the unique attribution models associated with CLOs, which often focus on overall incremental lift rather than last-click attribution.

Navigating the CLO Landscape: Key Considerations

For brands considering implementing a CLO program, several factors are crucial for success:

  • Understanding the Nuances: It's vital to recognize how CLOs differ from traditional affiliate marketing and understand their specific capabilities and limitations.
  • Strategic Budgeting: Carefully consider the pricing models associated with CLOs, whether it's a cost-per-acquisition model or funding the offer directly.
  • Focusing on Incrementality: Shift the focus from simple return on ad spend to measuring the true incremental return generated by CLO campaigns.
  • Leveraging Data Wisely: Tap into the rich data insights provided by CLO partners to refine targeting, personalize offers, and understand customer behavior.
  • Embracing Testing: Like any effective advertising channel, experimentation is key to unlocking the full potential of CLOs.

The Future Is Linked

Card-linked offers represent a powerful evolution in customer acquisition and engagement. By harnessing the wealth of purchase data available, brands can connect with consumers in a more relevant, personalized, and measurable way.

Cardlytics is not only a leading commerce media platform, but we are also the pioneer in card-linked offers. Through our partnerships with top financial institutions, we have visibility into approximately $5.8T in annual consumer spend, allowing us an unrivaled view of consumer spending. Our platform helps you reach real customers at the right time when they are thinking about how and where to spend their money. With targeting based on past purchase history, our offers provide real value to consumers and act as the critical tipping point for a purchase.

As technology advances and the integration of CLOs within the broader marketing ecosystem deepens, this innovative approach is poised to play an increasingly vital role in driving business growth and fostering lasting customer relationships. Get started with Cardlytics today to see how CLOs can help your brand acquire customers and strengthen customer loyalty in today’s economic climate: https://www.cardlytics.com/marketing-solutions

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.

Airlines: Unpacking the State of Customer Loyalty


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 the Airline category to better understand engagement over time by the entire more than $58B in consumer spend behavior.*

Airline Category Loyal Customers

On average, 39% of a merchant’s customers are not loyal. Yet the loyal segment shows extreme loyalty when it comes to share of wallet (95%) where as a not loyal segment does not (28%).

Top Customers (top 10% of most frequent transactors) are heavily loyal - 2/3. And that loyal customer segment shows the same extreme loyalty in terms of share of wallet as all customers.

Findings

We looked into purchase data at all Airlines 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. 

Airline Loyalty Movement

Overall, quarter over quarter, customers tend to stay in their same segment (36%) while there is an equal amount that increase/decrease loyalty (7%) and are either new or lapsed (22% and 26%, respectively). However, when digging into the individual segments, the opportunity becomes more clear among segments that are categorized as non-loyal. 

Segment Movement

Of the ⅔ of each customer segment that is non-lapsed, those that are loyal to a specific airline tend to stay loyal (57%). However, those categorized as “non-loyal” (Tied/Prefer) show significant willingness to to shop around (43% and 46%, respectively).  

Airline 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 .

Diving deeper into the individual segments tells us:

  • Loyal customers typically do not switch airlines, which is most likely due to airlines robust loyalty programs and incentives. However, customers that are Tied or Prefer have a high propensity for behavior change and show an opportunity for targeted campaigns to influence their behavior.
  • Lapsed customers are similar across all segments, which is reflective of typical airline purchasing behavior - regardless of their loyalty categorization.

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

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.

* For this report, we've selected the entire Airlines category in our data, collectively representing$58bn 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.

Introduction

In our previous report, Redefining Customer Loyalty, 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 this Report, we dive into customer behavior in the QSR category to better understand engagement over time by analyzing more than £5.8bn in consumer spend behavior.*

Findings: loyalty is fluid, not fixed 

We looked into purchase data at all QSRs 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. 

QSR Loyalty Movement

Overall, quarter over quarter, 36% of customers tend to remain in their existing segments and 26% increase or decrease their loyalty to a merchant, showing that QSR customers tend to be more promiscuous than other industries. Also, there is much more extensive customer loyalty movement within the “not loyal” segments. 

Findings: segment movement 

Diving deeper into the individual segments tells us:

  • Loyal customers are the most stable, with 58% staying Loyal.
  • Prefer customers also show strong retention — 52% remain in that segment.
  • Tied customers are the most fluid — only 10% stay Tied, while 58% shift into Loyal or Prefer.
  • Churn risk is highest for Prefer customers, with 35% lapsing — nearly 2x higher than Loyal customers (20%).

Segment movement

Customer movement is happening across all segments, but the Tied group shows the highest churn – only 10% remain Tied, while a combined 58% shift into either Loyal (32%) or Prefer (26%). This volatility signals an opportunity to convert mid-loyalty shoppers with targeted interventions.

QSR Leaky Bucket 

QSR brands are losing customers faster than they are acquiring them – with Lapsed customers (22.3%) outpacing New customers (15.9%). This signals a need to strengthen retention strategies to prevent long-term erosion of customer loyalty.

Takeaways: It’s more costly to acquire or re-acquire customers than to keep existing ones engaged. 

Our analysis shows that 22% of QSR customers have lapsed, outpacing the 15.9% of new customers being acquired. Brands are at risk of net customer loss unless they prioritise loyalty-building efforts.

Our segment movement data also reveals that “Tied” customers are the most fluid, with 90% shifting into other behaviours — with both gains and losses. In contrast, Loyal customers remain relatively stable, and Prefer customers show moderate retention.

To protect and grow market share, marketers must go beyond acquisition. Nurturing relationships and strengthening loyalty can have a direct impact on retention and revenue. 

To foster loyalty, consider these recommendations:

  • Deploy an “always-on” strategy to stay connected with customers, regardless of purchase frequency.
  • Continuously refine customer segments and tailor reward structures to reflect shifting behaviours.
  • Launch targeted campaigns focused on converting fluid segments (like Tied and Prefer) into Loyal customers.
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