Redefining Customer Loyalty

Introduction

Brands of all sizes know that engaging loyal customers is critical to their business, but how do they know which customers are loyal? Most marketers use first party transaction data to assess how often their customers are shopping or how much they are spending in order to define who their loyal customers are. This approach can lead to an inaccurate view of loyalty because it overlooks whether these customers are spending with competing brands.

Cardlytics has access to $4.7Tn in omni-channel annual card spend, powered by the largest financial institutions in the United States. We have sampled this rich dataset to provide a full-category view of spend that sheds insight on what it really means to be brand-loyal, and how marketers can redefine audiences to make informed, strategic decisions.

Read on to explore the full report (or download it here) and reach out today to get a custom brand-level view of your business’ loyal customers in relation to the category.‍

‍Key Takeaways from the Report

Significant potential exists to grow revenue by boosting customer loyalty and increasing their share of wallet.

• 10% of customers are loyal, spending 62% of their budget with the merchant.
• 90% are not loyal, spending only 9% of their budget with the merchant.
• Brands could benefit from 6.9x customer spend by focusing on the 90% of non-loyal customers

Transaction frequency doesn't equate to loyalty.

• Only 50% of a merchant's top shoppers are loyal.
• 48% of a merchant's top shoppers spend 79% of their budget with competitors.

Customer Loyalty & Share of Wallet

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‍Defining Customer Loyalty

‍Cardlytics defines customer loyalty based on a consumer’s preference for a merchant relative to the competition. In this report, we’ve sampled $160Bn of spend across six large categories to determine what percentage of a merchant’s customers are loyal and how much are those customers spending with the competition as compared to customers that are not loyal.

On average, 10% of a merchant’s customers are loyal (ranging from 5-13% depending on the category). Conversely, 90% of a merchant’s customers are not loyal, on average.

These loyal customers have a share of wallet of 62% (meaning 62% of their category spend is with the merchant). Not loyal customers have a share of wallet of only 9%.

¹ Cardlytics applies the principles of the Wallet Allocation Rule to rank existing customers (that spent during the prior and current periods) based on their share of wallet (which is the percentage of a customer’s total spending in a category that goes to a particular merchant) to assess clear first choice based on the relative rank of that merchant. Full methodology included at the end of this report.

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Top Customer Loyalty & Share of Wallet

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Are Frequent Shoppers Loyal?

‍In the absence of competitive spend data, Marketers leverage transaction frequency to define loyalty (e.g., “the customers who shop the most frequently are my loyal customers”). Cardlytics isolated the top customers (most frequent purchasers), by merchant, to assess whether this is an appropriate proxy for loyalty. For this group of top customers, we analyzed what percentage of them are loyal (have a clear first choice for the merchant) and how much are they spending with the competition.

On average, only 52% of a merchant’s top customers are loyal (with a clear first choice for the brand). In other words, roughly half of a brand’s top (most frequent) customers prefer to shop at competitive brands.

While the top customers that are loyal have a share of wallet of 60%, the remaining top-customers have a share of wallet of only 21%, meaning 79% of their spend goes to competitors.

¹ Cardlytics used a 12 month measurement period for Apparel and Big Box (08/01/23 to 07/31/24) and a 6 month period for all other categories (01/31/24 to 07/31/24) when isolating the top-10% most frequent shoppers. Cardlytics measured the share of wallet ranking for all of these top customers with spend in this period (regardless of whether they were newly acquired by the brand in the period or if they were existing shoppers from the prior period).

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What do these insights mean for you?

Supplementing first party transaction data with category-level spending behavior is essential to understanding and defining which customers are loyal (and which customers are not), thereby enabling more informed marketing strategies that deliver growth.

Reach out to Cardlytics to get a custom brand-level view of your business’ loyal customers in relation to the category. For more information, please submit a request.
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About Cardlytics

Cardlytics is the world's largest bank rewards network, powering offers for more than 20 of the top bank partners globally, including the world’s largest retail brands, representing $4.7T in consumer spend. Cardlytics helps brands determine what loyalty really looks like across their customer base to identify headroom for growth, reach customers deterministically, and drive conversions.

1. Loyal customers are existing customers of a merchant with a clear first choice for that merchant (relative to the category), as evidenced by their share of wallet ranking (note: existing customers are those with spend in the current and prior periods⁴).

2. Includes customers that have spent with a merchant but were either newly acquired or lapsed in the current period⁴, evenly split their category spend between multiple merchants, and/or have a clear preference for competitors.

3. Includes the top-10% of a merchant’s customers based on the number of transactions at the merchant in the trailing 6-12 month period

4. Current period for Apparel and Big Box is 08/01/23 to 07/31/24; current period for all other categories is 01/31/24 to 07/31/24

A Lens on Loyalty:  Cardlytics UK State of Spend Report 2024

LONDON, UNITED KINGDOM - 30 JULY 2024: Despite the cost-of-living crisis easing, it continues to play a significant role in shifting consumer behaviour, forcing brands to reconsider how they can inspire loyalty in an environment where consumers are looking to reduce their outgoings, according to a new report from advertising platform Cardlytics. 

The State of Loyalty Spend report, based on the spending habits of over 22 million UK bank accounts, along with a poll of 2,000 UK adults conducted by Opinium assessing customer loyalty, found that - despite consumers being increasingly cost-conscious - there is still room for brand loyalty to influence spending behaviour. 

Seven in 10 (69%) UK adults view trust in a brand as important to them when making a purchase, whilst three fifths (59%) say that they have been loyal to brands for “as long as they can remember” - a clear indication that brand loyalty is well and truly alive. However, particularly off the back of the cost-of-living crisis, affordability is vital in shaping and influencing purchasing habits. UK adults rank price as the most important factor in the decision-making process, followed by trust in a brand and convenience. 

This report examines three specific categories - retail, hospitality and travel - which together demonstrate a clear trend of customers having to balance commitment to the brands they know and love, with limiting financial outgoings. With consumer behaviour in flux, the report includes analysis on some of the factors creating this environment, along with recommendations for business leaders on how they can inspire brand loyalty, whilst also attracting to new customers.

UK restaurant-goers have a greater appetite for what they know

The dining sector is, generally, one of the first areas of discretionary spend that consumers cut when times are tough. With overall spending in restaurants down 8% in 2024 (following a 14% rise in 2023) but spending per trip up by almost a fifth (16%), it’s clear to see the challenges that brands and consumers face in the current environment. Price remains the key driver for customers when it comes to eating out, but other factors, including loyalty, quality, and trust remain relevant. 

Over half (54%) of adults choose to return to restaurants they have visited before over trying new alternatives, showing that consumers remain risk averse as economic pressures on households continue to build. Despite this, a similar number (54%) of consumers are more likely to visit a new restaurant if they offer a discount voucher or cash back rewards system; while 45% of UK households are more likely to visit a restaurant if it offers rewards for returning customers. This is evidence of the potential for data-driven tactics to enable restaurants to drive greater footfall and sustain their existing customer base.

Affordability trumps loyalty when it comes to the weekly food shop

Two-thirds (64%) of respondents named affordability as the most important factor when deciding where to shop, a clear indication of impact of record levels of inflation on consumers’ disposable income.

Despite consumers being increasingly cost-conscious, three in five (61%) said they are more likely to visit a store or supermarket if it offers a loyalty or rewards system – rising to 70% for the 18-34 demographic. In an environment where brand loyalty has come under question, this research shows how solutions such as targeted offers and rewards can inspire commitment to brands.

Indeed, loyalty remains an important factor for many consumers, with over half (54%) choosing to travel to shop at their preferred supermarket, even if other options are closer. This should serve as further encouragement for supermarkets that reward their customers for staying faithful, particularly in times where confidence in spending is low. 

Holidaymakers balance brand familiarity and cost

When it comes to travel, affordability is key, but building brand loyalty is a clear opportunity - with 69% agreeing that trust in a brand is important when making a purchase. Brands that can unlock insights from their data, and provide tailored offers, will thrive - building greater trust in a time where competition is rife.

Over the last two years, budget airlines have seen a boom, with the total number of trips increasing from 1,750,000 in 2022 to 2,400,000 in the first six months of 2024 (already a 37% rise), whilst non-budget airlines have only increased from 509,000 to 590,000 (a 15% uplift) across the same period. 

Equally, the volume of domestic travel has doubled between 2021 and 2024. Whilst this could be down to more people recognising the beauty of the Cornish coast or Yorkshire Dales, affordability is likely to be a key factor driving this uplift. The average transaction value of a domestic holiday (£110) is £20 cheaper than a budget airline flight (without the additional expense of accommodation), less than a third of the price of a non-budget airline, and almost a fifth of the price of a package holiday abroad.

“Whilst affordability will always be key for consumers, particularly in tough economic times for consumers and households, building brand loyalty is key. Whether it’s restaurant-goers sticking with what they know, particularly when they’re rewarded for it, or customers travelling further than they need to take advantage of their favourite supermarket’s loyalty card system, consumers are making savvy decisions based on what suits them – and often, which brands treats them best," Lucy Whittemore, SVP of UK Advertising, Cardlytics states.

‍"For businesses in hospitality, retail, and travel, where competition is high and interaction with customers is frequent, data will be key. By gleaning insights from customers’ spending data, brands can create, tailored, relevant offers for consumers – both new and existing. This can help them build a deeper connection with the customer, fostering loyalty and trust to drive footfall and incremental growth in spend.” 

The full State of Spend Report is available for download here.

‍Methodology

Cardlytics analysed spending trends based on its purchase intelligence data, which covers over 22 million UK bank accounts. The periods include January and February spending from the last four years (2024, 2023, 2022, 2021).  

Cardlytics also conducted research with Opinium looking at customer loyalty. The omnibus surveyed 2,000 UK adults, nationally representative, between 18^th and 21^st June 2024.

Explore the 2024 Cardlytics Customer Experience Survey

The results are in! Cardlytics and Qualtrics recently partnered to survey shoppers, and evaluate the thoughts and feelings of customers who leverage card-linked offers.  It's no surprise that CLOs create a more rewarding experience for shoppers, and can act as that critical tipping point to influence purchase decisions.  Explore the full survey in our latest infographic below or download here:

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Explore why driving transaction frequency among existing and high-value customers is essential in the pet category.

New from Cardlytics: Our 1st party transaction data suggests that while less and less consumers are spending in the pet specialty retail category every year, those who remain are increasingly valuable for brands to retain. Download the full insight bulletin today!

Since COVID, the Pet specialty retail category has seen impressive growth in spend every year. However, the rate of growth has significantly declined. The leading driver of this slow down is a decline in the volume of Pet shoppers - shopper volume only grew by 1.17% in 2023. There are less category shoppers overall, and less consumers defined as new pet parents.*

Despite fewer shoppers entering the category, existing pet parents are doting on their pets with non-essential purchases.

Of existing pet parents shopping the category in 2023, 9% were considered “doting pet parents” (+2pts vs. 2022) who make non-essential purchases for their pets (e.g. premium natural food).  This category of shoppers spends 2x more than the average pet parent.

What does this mean for you?

Driving transaction frequency among existing and high-value customers is essential to increasing sales long-term, especially when the category competition is fierce. 

‍Download the full insight bulletin, and let’s chat about how Cardlytics can help drive your pet loyalty efforts. Email hello@cardlytics.com to get started.

‍Introduction 

Cardlytics helps brands understand and respond to the biggest trends in consumer behaviour, supported by spending insight from over 20 million UK bank accounts. 

In this report, we have analysed eating and drinking habits to understand how restaurants, from quick-service to fine-dining, as well as lunch spots, coffee shops and casual chains, have been impacted by the prolonged high cost-of-living. Are we still a nation addicted to coffee? Are pizza shops still hitting the spot with consumers? Are bakeries and burger chains suffering as many consumers look to embrace healthier choices??    

To help brands better understand how consumers are reacting to this extended period of high inflation, we’ve tackled all of these topics, analysing Cardlytics purchase intelligence data and providing insight and advice for brands on supporting and continuing to attract customers in today’s operating environment. 

Pizza shops getting the chop as consumers shift to alternative fast-food options   

Takeaway pizza chains are losing ground in the quick service restaurant (QSR) sector, as consumers continue to move away from pizza in favour of alternative fast-food options. 

Despite the average transaction value (ATV) at pizza restaurants increasing by only 11% between 2022 and 2024 (compared to a 21% rise in chicken shops and 18% at fast-food restaurants), diners have cut the number of visits to popular pizza takeaway chains by 20% over the same period.

This is significantly greater than the 4% reduction in visits to fast-food restaurants and 7% drop seen by chicken shops during the same period. It shows that, despite the widely reported impact of inflation on spending habits and a general rise in ATV across the QSR sector, consumers haven’t been entirely deterred from discretionary spending on the odd takeaway.

In fact, fast-food restaurants saw a 13% rise in spending between 2022 and 2024, whilst chicken shops saw an 11% increase. Comparatively, takeaway pizza restaurants saw a reduction in spending by 12%.

It appears, therefore, that despite tightening purse-strings, consumers are reluctant to forgo spending money on fast-food and chicken shops but are willing to sacrifice the occasional pizza. 

Why might this be? Perhaps it’s due to the increasing availability of similar quality products at more affordable price points in supermarkets, or it could be as a result of a growing variety of fast-food and chicken shop chains in the UK market. In any eventuality, pizza shops face a unique set of challenges that they must overcome, if they are to regain market share in the QSR sector. 

Cardlytics analysis

For pizza brands, there is a clear task at hand to ensure that they remain competitive in an increasingly busy QSR sector.

Consumers are faced with a growing number of takeout options to choose from, with chicken shop and fast-food chains from around the world recognising the opportunity available in the UK market. The rollout of up-and-coming fast-food restaurants is a clear indication of the growing choice consumers have from chains that,  when compared to 10 years ago, had little to no market presence in the UK.

In tandem, established players in the QSR sector are recognising the need to deploy more creative and effective marketing campaigns to gain a competitive edge and drive engagement amongst consumers. This has been the case amongst fast-food and chicken shop chains, where spending amongst consumers has continued to increase despite rising inflation, whereas pizza chains have suffered a significant reduction in footfall by 20%.

The data shows that, despite the macroeconomic headwinds, there is a sustained appetite for takeaway food in the QSR sector. Marketers should therefore emphasise rewarding consumers with the best possible deals to gain a competitive advantage in what is, and continues to be, a heavily saturated market. 

Coffee and quick ‘city lunch’ culture on the wane, while on-the-go bakeries see boost as cost-of-living continues to bite

As the cost-of-living continues to remain high, and disposable incomes still stretched due to unrelentingly high-interest rates, many commuting office-goers are being forced to modify their spending habits.

In fact, the broader macroeconomic challenges have had a significant impact on ‘city’ lunch brands, causing prices to hike. The knock-on effect of this on consumers is clear to see, with the average costs per transaction up 5%. This has caused consumers to seek cheaper alternatives, leading to a 9% reduction in the number of transactions made across the year, whilst overall spending has reduced by 4%. 

A similar trend can be seen in spending at high-end coffee shops, a sector which saw a 14% drop in visits. This is a higher figure than the 9% drop in visits to chain coffee shops – which saw a 5% reduction in total customer spending.

Interestingly, this is not a trend that has affected the on-the-go bakery sector, with companies such as Greggs experiencing a 4% rise in spending for the year. This did not correlate with a proportionate increase in trips to such bakeries, which saw a 1% rise. This suggests either loyalty to the brands as a result of their consistent pricing, or perhaps resulting from customers shifting from the more expensive coffee or city lunch spots to more cost-effective alternatives. 

When considered together, these trends tell an interesting story of consumers becoming increasingly conscious of their spending and subsequently moving away from more costly options to more affordable choices. 

It is certainly feasible these statistics reflect a wider shift in habits, with many commuters now opting to bring in their own lunches and source cheaper coffee options (perhaps within their offices), and typically buying food and drink at more affordable dining spots where necessary. This remains a key trend to keep an eye on as the post-covid, hybrid working era is challenged by ‘return to the office’ protocols introduced by companies and the public sector. 

Cardlytics analysis

Commuters and city workers are key consumers for coffee shops, inner-city lunch spots, and on-the-go bakeries, so it’s important to keep an eye on how these trends continue to develop and what impact these changes may have. 

Crucially, for these brands – who regularly interact with their customers – data will be key. If the behaviours of their customers are changing, what do those changes look like? Are people opting only for a sandwich and sourcing their coffee elsewhere? Perhaps customers for whom a pastry was a daily purchase are now only buying them once-a-week as a treat? Looking at an individual’s data, and using that to create tailored offers, not only shows that your brand cares, but also helps to put the right offer in front of them at the right time. 

Then, by offering incentives to customers on the days of the week they are most likely to visit the store or buy a particular item, consumers are far more likely to become repeat customers. This  becomes particularly pronounced as people continue to limit their spending in the era of high inflation and an ongoing cost-of-living crisis.

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Casual and upscale dining both drop off while burger chains see a hike 

Dining out is often one of the first areas of discretionary spend households look to reduce when their finances are stretched. With interest rates still at a high threshold, disposable incomes are still being spread thin for many. 

It is with this backdrop that the number of transactions within casual dining restaurants has dropped 13% year-on-year. This followed a small 2% growth in transactions between 2022 and 2023. 

However, despite the decline in trips to restaurants this year, consumers who are eating out are spending 7% more per transaction compared with the same time period in 2023. This is likely as a result of inflation hiking prices, increasing the average spend per transaction. Overall, casual dining has seen a 7% decline in  total spend by consumers. 

As purse-strings continue to tighten, upscale dining has seen a significant decline of 11% relating to trips to restaurants. With consumers clearly being more cost conscious than in recent memory, many appear to have reduced visits to more upscale restaurants in a bid to save money.

On the flip-side, burger chains – such as Honest Burger, Patty & Bun and Byron – have seen a massive 17% hike in transaction volume in the last 12 months. This has coincided with a 6% growth in the amount spent per transaction on average, contributing to an overall 12% growth in spend in burger chains this year. 

The reasons behind this could vary, numerous establishments have launched their own vegan and healthier-option burgers and  menus, for example, as well as the restaurants potentially representing a solid ‘middle ground’ for households, or an alternative between fast-food and fine-dining. 

Cardlytics analysis

The eat-in dining industry, from casual to  up-market, is still being impacted by the ongoing high cost-of-living. Whether it’s more regular purchases like a quick coffee or lunch, or something more meaningful, like a celebratory meal, customer scrutiny on spend remains high. 

For brands to continue to navigate this challenging  economic environment, clever use of data will be instrumental. This is particularly important for brands  which interact  frequently with customers,  such as coffee shops and quick service restaurants. For these brands, it is now important to  meaningfully consider what their customer data is telling them.  Which habits do their customers have? Is it a lunchtime treat every Friday? A sweet treat with their coffee as a midweek pick-me-up? 

Inspecting an individual’s data to create tailored offers shows that you understand and care about giving your customers the best  value for the brands on which they want to spend money . For most brands, the key will be offering introductory discounts to entice new customers , and longer-term personalised rewards to secure return visits.

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‍Craving more? Click through here for access to our bite size infographic

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Methodology

Cardlytics analysed spending trends based on its purchase intelligence data, which covers over 20 million UK bank accounts. The periods include January and February spending from the last four years (2024, 2023, 2022, 2021).  

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Here to stay(cation)

According to recent Cardlytics data, we found that UK staycations will be most popular among holiday makers, with nearly half (44%) of those planning to go on holiday this year opting to stay local, compared to short-haul (38%) and long-haul (24%) destinations. Holiday lettings providers like Airbnb and Vrbo have also seen increased transaction volumes maintain year-on-year. Transaction volumes a year ago (December 2022 into January 2023) hiked 54% year-on-year, reaching 60,353 transactions, with similarly high levels this year (58,562 transactions) indicating a shift from more expensive hotel bookings.

Tour de Force

Tour operator providers such as Tui, Virgin Holidays and Jet2 have seen a continuation of their post-Covid revival, with transaction volumes growing 7% year-on-year, after a massive 61% growth against the previous period (December 2021 into January 2022). This is a further indicator of travellers seeking value where they can.

Airlines take off

Alongside those seeking to stay local, airlines such as British Airways and Virgin Atlantic also saw a rise in spending, with overall spending up 13% year-on-year, and transaction volumes up 15% in the same time period. This indicates those that can afford longer-haul destinations are prioritising doing so, as the high cost-of-living shows signs of easing. Budget airlines also saw a 3% rise in spending, with the volume of transactions up 2% year-
on-year.
According to Hannah Collins, Partnership Director, Travel: “We are continuing to see the real effect the cost-of-living crisis is having on travel spending, with the increase in domestic holiday bookings demonstrating the focus on finding more affordable getaway options. “That said, people are on the hunt for their ideal 2024 holiday – they’re just seeking the best possible deals and promotions on the market. With that in mind, travel brands and booking sites need to ensure they’re offering the most targeted and personalised discounts and rewards to ensure they continue to attract and retain customers to drive incremental growth in what’s set to be another tough operating environment this year.”

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Download our infographic here.

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Cardlytics data is based on spending from over 20 million UK bank accounts. This data is based on spending between (unless stated): The four weeks leading up to 8th January of each year:

• This year (2023/24): 7th December 2023 – 8th January 2024
• Last year (2022/23): 8th December 2022 – 7th January 2023
• 2021/22: 9th December 2021 – 6 th January 2022

The poll was conducted by Opinium, based on a sample of 2,000 adults between 12-16th January 2024.

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The ‘golden quarter’ is a critical trading period for grocery retailers. A celebratory time of year, grocers typically get a boost from shoppers socialising more and preparing for Christmas. However, this year has brought a fresh set of challenges as consistently high inflation has put a dampener on consumer confidence and tightened wallets.

With interest rates still high, the cost-of-living crisis has continued to impact purchasing trends. But what does this mean for the grocery market? How will overall grocery sales, and shopper habits, affect grocers Christmas draws ever closer?

Our new grocery spending report is based on spending analysis from over 20 million UK bank accounts, as well as polling of over 2,000 UK adults. It offers insight for retailers as we head into the final stretch of the golden quarter and offers strategies for enhancing customer loyalty at this critical time.

Discount Christmas?

Our research shows that consumers are increasingly turning to discounters and loyalty schemes as they face the ongoing cost-of-living crisis.  In fact, our polling suggests that the average shopper has seen their grocery bills increase by £644 this year.

In response to heightened costs, consumers are seeking discounts: over a quarter have turned to loyalty and reward schemes (28%) and online discount codes (26%), while 22% are browsing price comparison sites and a fifth of consumers are using cashback offers (20%) to manage expenses.

This search for value is also translating to what people are buying and from where. Almost two in five consumers are buying more own-brand supermarket products, and a quarter are switching to cheaper brands and discount chains. As Christmas approaches, 26%plan to cut back on presents, while 22% have curtailed big-ticket purchases.

As we approach Christmas, grocery spend is anticipated to rise as families opt for home-based celebrations, driven by ongoing high living costs.

Harnessing the trend of savvy shoppers, discount grocery retailers have undoubtedly benefited from a reputation for value, as well as a focus on deals and personalised offers. As a result, they’ve grown at a faster rate than the traditional ‘big four’ grocers. Discount grocery stores saw transactions increase by 2% between June and September this year, with consumer spend also increasing by 6%.

The big four supermarkets have seen a 5% increase in spend but a 4% decrease in transactions, signifying a shift to cheaper alternatives.

The run-up to Christmas represents an opportunity for the bigger supermarkets to reverse this movement. But doing so will require them to be smart with the way they market their food and drink. Leveraging the data and insights on customer preferences will be important to entice customers back as they start making bigger ticket purchases for parties and the all-important festive meals with friends and family.

Are you a grocer looking to get customers back through the door this festive period? Cardlytics offers extensive insight and marketing support for retailers, with access to spending data from over 20 million UK bank accounts.

By providing this ‘whole wallet view’ to grocers, you benefit from a deeper understanding of the competitive landscape and implement precise, targeted marketing that delivers tangible results. Heading into the final stretch of the Golden Quarter, we’re helping our customers leverage this data to drive incremental sales growth and retention, as consumers look to find the most value for money with their Christmas spending.

Cardlytics recently took the stage with Lyft at eTail East in Boston, MA to explore how marketers can elevate their approach to growth marketing and stay ahead of data deprecation. 

Within the ever-changing retail and DTC industry, marketing leaders need to be able to demonstrate the impact that their advertising spend is having on revenue generation and corporate strategy.  Kevin Hsu, Director, Growth Marketing at Lyft and Nate Bucholz, Vice President, Advertising Partnerships at Cardlytics discussed how leveraging a data-drive approach to growth marketing drives measurable revenue for the rideshare leader. 

Watch the full video below!

Looking to explore how Cardlytics Purchase Insights can help you engage customers in a one-of-a-kind native ad platform? Get started.

Sleigh this Holiday Shopping Season

The 2023 holiday season is just around the corner, and this year consumers will be headed to their favorite online and in-store brands earlier than ever! 

As we gear up for the 2023 holiday season, Cardlytics' comprehensive analysis of nearly $380 billion in consumer holiday spending over the past three years equips marketers with essential insights to win more during this critical period. Access our full 2023 Holiday Infographic here. 

Decoding the 2023 Holiday Analysis

Holiday 2022 witnessed a 3% drop compared to the previous year, attributed to reduced spending per customer, fewer transactions per customer, and slower growth in average transaction size. Given the lingering economic challenges from the previous year, brands need inventive strategies to incentivize consumer spending during this holiday season.

Interestingly, a shift in spending behavior has been observed, with holiday spend moving back to brick-and-mortar retailers from online channels. This contrasts with the Back-to-School analysis by Cardlytics, which saw online spending was up for both B&M.coms and online only brands. This shift underscores the significance of an omni-channel approach, ensuring that brands are present where consumers choose to shop, whether in-store or online.

Early Birds and Mass Merchandisers

An intriguing trend emerging from the analysis is the increasing percentage of spending occurring within the initial three weeks of the holiday season year over year. Consumers are diving into their shopping lists earlier and earlier, demanding that brands engage with them during this period.

When it comes to dominating the holiday market share, Mass Merchandisers are the frontrunners, holding a whopping 58% of the total wallet share. As consumers grow more price-conscious, Mass Merchandisers are poised to leverage this shift in consumer behavior to their advantage. The Apparel category is also gaining momentum, presenting an opportunity for brands to bolster their presence and profits.

Unwrap the secret to success with Cardlytics 

Through strategic partnerships with banks, Cardlytics possesses an extraordinary advantage - access to the transaction data of over 186 million consumers. This invaluable resource empowers brands with a detailed understanding of consumer purchasing patterns, offering a holistic view of when, where, and how people shop.

The holiday season is approaching rapidly, and with it comes the opportunity for retail brands to acquire new customers and grow loyalty with existing shoppers. In this competitive landscape, making informed decisions is crucial to stand out from the crowd. That's where Cardlytics comes into play, providing real insights from real bank customers to support retail brands in navigating the complexities of the upcoming holiday season. Get started today.

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