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Across all industries, US consumer spend continues to trend up as more states reopen their economies. When looking at weekly spend, Cardlytics purchase insights show that overall spend is pacing at -11.4% year over year. This is a significant improvement compared to a low point of –34.3% YOY in late March.

But does this mean that consumers are easing back into their pre-COVID-19 shopping patterns? As impacted marketers seek to time their return, we need to go a level deeper to understand when spend is returning to normal. To help answer this question, I’m pleased to announce the Cardlytics Recovery Indicator.  

What is the Cardlytics Recovery Indicator?

The Cardlytics Recovery Indicator was designed to help brands keep a pulse on consumer confidence and choose the right time to ramp up their marketing. In order to forecast when consumers may be ready to return to stores, we’ve looked at trends for select discretionary categories—comparing weekly spend at low-ticket, high-frequency businesses such as salons, apparel retailers, casual dining and QSR restaurants, among others.

Purchase insights like these are the foundation for precisely targeted campaigns in our ad platform and can be used to drive sales from customers who are starting to purchase again outside of their homes. We’ll be sharing the Cardlytics Recovery Indicator regularly via our State of Spend report series.

Overall, recovery is trending in the right direction

Marketers who have been waiting for signs of recovery shouldn’t wait much longer. While customers remain cautious about spending on non-essentials and returning to their normal buying patterns, they are gradually gaining confidence each week. After dropping to a low of -75% YOY at the end of March, spend at brands within the Recovery Indicator has continued to climb back up — reaching -40.85% YOY the week of 5/28- 6/3. This momentum is represented by a gain of +34 points.

When looking at total spend with Recovery Indicator brands, we see consumers continuing to spend more each week, albeit at fluctuating rates. The last week of May, they spent 6.3% more than the week before, a slightly lower rate of increase than the 12% growth we saw previously.

Making the Cardlytics Recovery Indicator actionable

As marketers plan their return, the effectiveness and efficiency of their campaigns will depend on their ability to prioritize the individuals who are ready to spend. At Cardlytics, we’re committed to helping marketers predict where and when spend at their stores is likely to return. By overlaying our Recovery Indicator on their unique customer sets, we help gauge customer confidence and choose the right time to ramp up marketing. We also help our clients acquire new customers by prioritizing people who have resumed normal spending and by focusing on regions of the country that are showing strong signs of recovery.

One of our clients—a national restaurant chain—wanted to re-engage customers as they became comfortable making purchases outside the home. Using our purchase insights, Cardlytics was able to identify customers actively purchasing from quick service restaurants. Through targeted offers in customers’ online and mobile banking channels, we helped our client reach the most likely customers and drive sales for their pickup and drive-through locations.

Want more actionable insights?

With insight into 50% of US transactions, Cardlytics puts purchase insights into action every day for advertisers in banks’ digital channels. Whether marketers are experiencing ups or downs in consumer spend, we're here to help our clients navigate the curve and drive measurable sales. Contact us for an analysis and campaign strategy customized for your brand.

These insights were recently featured in our State of Spend report, which follows important shifts in consumer spend and track early signs of recovery. Download our latest State of Spend Report today and be sure to check back for the next issue.

Analysis in this report is based on data derived from the Cardlytics platform between March 5th and June 3rd. While analysis is representative of purchase behavior, it does not include every customer or every financial institution on the Cardlytics platform.

We recently launched the Cardlytics State of Spend series to help marketers navigate changes in consumer spend. Purchase insights like these are the foundation for precisely targeted campaigns in our ad platform. Our offers in banks’ digital channels drive business growth for marketers and provide valuable savings for customers. 

In addition to highlighting weekly changes in spend, our new State of Spend issue spotlights Memorial Day travel trends. Find out which travel categories are seeing the biggest changes as customers find new ways to get out of the house this summer. With each issue, we’re sharing the Cardlytics Recovery Indicator so that you can keep a pulse on consumer confidence and track which states are showing the strongest signs of return.

Inside this issue: 

• Overall spend continues to increase with small weekly gains 
• Signs of Return: the Cardlytics Recovery Indicator 
• Discretionary spend is up in 48 states 
• Customers are now shopping fewer retail brands 
• Memorial Day kicks off summer travel  
• Actionable tips for long-term growth 

Want more actionable insights? 

With insight into 50% of US transactions, Cardlytics puts purchase insights into action every day for advertisers in banks’ digital channels. Whether marketers are experiencing ups or downs in consumer spend, we're here to help our clients navigate the curve and drive measurable sales.  

Contact us for an analysis and campaign strategy customized for your brand.  

Be sure to check back for the next Cardlytics State of Spend report and view last week’s edition here. 

As marketers try to get a sense of how reopening will impact their business, Cardlytics is leveraging our purchase insights to help brands gauge customer confidence and choose the right time to ramp up their marketing. With that in mind, we took a closer look at Georgia—one of the first states to open back up following COVID-19 closures—to see whether reopening caused a boost in consumer spend.

Georgians cautiously resume spending in key categories

Weeks after states began lifting restrictions, customers are still carefully weighing if and how they’re ready to spend outside of their homes. In Georgia, customers can now return to malls, local gyms, salons, and restaurants. Georgia’s overall weekly change in spend is now down only –6.5% YOY compared to the national average of –12.9%.

Interestingly, Georgians did not rush back immediately after the reopening on 4/24. Spend that week was relatively flat and remained in line with the lows of the prior weeks. In subsequent weeks, as consumers gained confidence, we’ve seen spend at brick & mortar locations begin to return. While still far from their normal sales levels, salons, restaurants, apparel, and shoe retailers have seen positive momentum in recent weeks.

Despite the ability of gyms to reopen, Georgians still appear hesitant to return. They have, however, increased their investment in home fitness. In-store spend at sporting and outdoor goods retailers has almost returned to normal levels -- up +72 pts from the last week of March. 

Actionable tips:

While customers are slowly starting to pick up their old spending habits, many are still playing it safe—even in states that have reopened. Cardlytics uses powerful purchase insights to help marketers understand where and when customers are ready to resume spending.

For retailers with physical locations: prioritize customers who are ready to spend

At Cardlytics, we’re committed to helping marketers identify where and when spend at their stores is likely to return. By overlaying our Cardlytics Recovery Indicator on your unique customer sets, we can measure customer confidence and help you choose the right time to ramp up marketing. We also help clients acquire new customers by prioritizing people who have resumed normal spending and by focusing on regions of the country that are showing strong signs of recovery. Our campaigns are highly effective at driving incremental sales to your locations and providing valuable savings for consumers during these critical times.

For retailers with a strong online presence: re-engage newly acquired customers with relevant marketing

As states reopen, consumers have an opportunity to return to their previous shopping patterns. Retailers in categories with an influx of new customers must act quickly to defend gains in market share. Cardlytics uses our purchase insights to help identify early signs of churn and build lasting loyalty. Targeted cash-back offers in our ad platform keep customers new and existing customers engaged and drive repeat purchases.

For all retailers: promote products that support life at home

Home is the center of the ‘new economy’ as customers keep busy tackling projects around the house. They’re even keeping their workout routines strong at home. Make the most of this trend by promoting products that help them keep busy, stay active, and get some fresh air even while they’re sheltering in place.

Want more actionable insights?

With insight into 50% of US transactions, Cardlytics puts purchase insights into action every day for advertisers in banks’ digital channels. Whether marketers are experiencing ups or downs in consumer spend, we're here to help our clients navigate the curve and drive measurable sales. Contact us for an analysis and campaign strategy customized for your brand.

These insights were recently featured in our State of Spend report, which follows important shifts in consumer spend and track early signs of recovery. Download our latest State of Spend report today and be sure to check back for the next issue.

Analysis in this report is based on data derived from the Cardlytics platform between February 27^th and May 20^th. While analysis is representative of purchase behavior, it does not include every customer or every financial institution on the CDLX platform.

We recently launched the Cardlytics State of Spend series to help marketers navigate changes in consumer spend. Understanding where consumers are most likely to buy is a powerful starting point for driving real business growth. We’re using these purchase insights to run precisely targeted campaigns in banks’ digital channels that drive incremental sales for marketers and provide valuable savings for consumers.

In our latest State of Spend issue, we’re reporting weekly changes in spend and tracking early signs of recovery with the Cardlytics Recovery Indicator. In addition to year-over-year analysis, we’re also now including week-over-week trends. As brands choose the right time to ramp up their marketing, these insights can help them gauge consumer confidence and pinpoint regions that are further along the path to recovery.

Inside this issue:

• COVID-19’s impact on overall spend 
• Signs of Return: the Cardlytics Recovery Indicator
• Where is spend recovering?
• Actionable tips for long-term gains

Want more actionable insights?

With insight into 50% of US transactions, Cardlytics puts purchase insights into action every day for advertisers in banks’ digital channels. Whether marketers are experiencing ups or downs in consumer spend, we're here to help our clients navigate the curve and drive measurable sales.

Contact us for an analysis and campaign strategy customized for your brand.

Be sure to check back for the next Cardlytics State of Spend report and view last week’s edition here.

Customers are staying active and sticking to their workout resolutions. Before the pandemic hit, three key categories were driving overall fitness growth: traditional gyms, boutique studios, and on-demand workouts. 

When looking at weekly fitness spend, Cardlytics purchase insights show that the overall gym and fitness category is down 77% year over year. However, there is still a major bright spot in the industry. Since the start of shelter-in-place orders, the on-demand fitness trend has gained momentum and is now the fastest-growing fitness category. In recent weeks, spend with these convenient, app-based workouts is up 125%. To help support their at-home fitness goals, customers have also increased their online spend with athletic footwear retailers (up 21%) and sporting goods (up 55%).  

Many traditional gyms and studios have embraced the online fitness trend by offering live at-home workout programs and ongoing meal prep while they continue to remain physically closed. These creative solutions seem to have paid off, as these categories have shown significantly slower decreases in spend compared to other impacted industries. 

Actionable tips: 

There is a major opportunity for fitness brands to acquire and retain customers while motivation is high. 

• For brands with on-demand and online offerings, this means retaining the influx of newly acquired customers to defend gains in market share and build lasting loyalty. Using purchase insights, Cardlytics can identify which customers are at risk of returning to their old fitness habits and keep them engaged with precisely targeted offers in our ad platform.

• For traditional gyms and studios, purchase insights provide a critical gauge for timing a return to marketing. Cardlytics can help track when your members are starting to spend at physical stores and re-engage them with timely offers that drive measurable memberships. We can also help you acquire new customers by prioritizing people who have resumed normal spending or pinpointing regions of the country that are further along the path to recovery.

• For all retailers, make the most of the at-home fitness trend by promoting products that support at-home workouts and active lifestyles through your online channels.

Whether marketers are experiencing ups or downs in consumer spend, Cardlytics’ ad platform influences customers’ purchase behavior through precisely targeted campaigns that drive measurable sales. Contact us for a custom analysis and campaign strategy customized for your brand.

These insights were recently featured in our State of Spend report, which follows important shifts in consumer spend and track early signs of recovery. Download our latest State of Spend Report today and be sure to check back for the next issue.

Analysis in this report is based on data derived from the Cardlytics platform between March 12th and April 29th. While analysis is representative of purchase behavior, it does not include every customer or every financial institution on the Cardlytics platform.

Atlanta, GA – May 28, 2020 – Cardlytics, Inc., (NASDAQ: CDLX), a purchase intelligence platform that makes marketing more relevant and measurable, today announced it will present at two upcoming conferences: the Bank of America 2020 Global Technology Conference and the William Blair 40^th Annual Growth Stock Conference.

• Chief Executive Officer and Co-Founder, Lynne Laube, will present at the Bank of America Conference on Thursday, June 4, 2020 at 1:45 p.m. Eastern Time and will be webcast live.

• Ms. Laube will present at the William Blair Conference on Tuesday, June 9, 2020 at 9:40 a.m. Eastern Time and will be webcast live.

A live audio webcast of each event will be available on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. After the events, an archive of the webcasts will also be available for a limited time on the Cardlytics Investor Relations website.

About Cardlytics

Cardlytics (NASDAQ: CDLX) uses purchase intelligence to make marketing more relevant and measurable. 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 London, New York, San Francisco and Visakhapatnam. Learn more at www.cardlytics.com.

With insight into 50% of US transactions, Cardlytics is uniquely positioned to help marketers understand and respond to current trends that impact their industries and customers.

We’re putting these purchase insights into action every day for advertisers in our native ad platform and are pleased to publish a new Cardlytics State of Spend series for all marketers to leverage.

Inside the first issue:

• COVID-19’s impact on overall spend 
• eCommerce is leading the path forward
• Home is the center of the new economy
• Customers choose home fitness
• Actionable tips for long-term gains

Want more actionable insights?

We’re committed to providing certainty in this time of uncertainty. Whether marketers are experiencing ups or downs in consumer spend, Cardlytics is using our unique purchase insights and powerful advertising channel to help all of our clients navigate the curve and drive measurable sales.

Contact us for a custom analysis and campaign strategy customized for your brand.

Be sure to check back for the next Cardlytics State of Spend report to follow important shifts in consumer spend and track early signs of recovery.

• Growing number of UK adults are switching current accounts; nearly one in ten (7%) changing banks in the last 12 months
• A quarter of people (25%) have either considered switching or will be considering in the next year
• Half of people (50%) have never switched current account; those who could benefit the most from switching continue to miss out

12 May 2020: New analysis from Cardlytics (NASDAQ: CDLX), a purchase intelligence platform that drives loyalty and engagement through merchant-funded rewards, has found that more than three million[1] UK adults changed their current bank accounts in the past year as the switching trend continues to grow.

Driven by increased competition in the UK banking sector, which has brought with it a boom in rewards and offers available to customers, nearly one in ten (7%) switched current account providers last year.

The growing popularity of switching shows no signs of slowing. While this year’s figures represented a modest increase on last year (+2%), the study found that a further 5.9 million[2] UK adults will consider switching current accounts in the next 12 months. Out of those who have already switched, 52% said they would switch more frequently in future.

Digital challengers gain as customers switch gears

Traditional banks made up well over half (69%) of the accounts UK adults switched from, while newer digital challenger banks such as Monzo, Starling Bank and Revolut made up 25% of current accounts switched to.

Out of those who switched, nearly a third (31%) continued to keep their old account, pointing to the growing trend of individuals having multiple accounts for different purposes.

Money for something

With new players on the scene, competition for customers among banks is fierce; and they won’t be able to rely on blind loyalty. Less than a third of people (31%) considering switching, or those who had planned to do so but hadn’t done yet, said they would feel loyal to their bank if they knew they could get a better deal elsewhere. 

Cash incentives (27%) was the top reason given by people who had switched and set up a new bank account. This was followed by a better interest rate (21%). Many switchers cited how they were treated as customers as a key driver. Furthermore, 19% said their main reason was that the new bank would better recognise and reward their customers, while 14% said better engagement through rewards, offers and services. 

Commenting on the findings, Campbell Shaw, Head of Bank Partnerships at Cardlytics, said, “Switching is clearly here to stay. The money supermarket effect has meant it’s never been easier to shop around for a current account and people are voting with their feet. While that’s great for consumers after a deal, it puts banks in a tricky position. Many are committing big budgets and efforts to draw in new customers who may soon move on again when a better deal emerges.

“The coming year will be a real test for banks. As customers focus even more on value, how banks can offer them that while recognising their loyalty will be crucial.”

Top reasons why people switched:

1. Cash incentives (27%)
2. Better interest rate (21%)
3. Being recognised and rewarded (19%)
4. Superior mobile banking app (17%)
5. Poor service from previous bank (17%)
6. Personal recommendation (17%)
7. Better engagement through rewards, offers and services (14%)
8. Better rewards or cashback scheme (12%)
9. Most of their products already with the new bank (11%)
10. Previous bank didn’t offer the services I needed (11%)

Where the buck stops

Despite nearly half (48%) of UK adults admitting they know they aren’t getting the best deal with their current provider, half of the UK population have never switched their current account, leaving many cut out of the best rates, fees and rewards open to them.

Decision paralysis (44%), lack of time (32%), not finding a reward or incentive worth switching for (27%) and concerns over the hassle of switching (23%) are the most popular reasons for this.

In spite of efforts by the Current Account Switch Service to increase the number and frequency of current account switching, particularly among the hardest to reach and most vulnerable groups, the research found those who could benefit most from switching are the most likely not to.

One in three (30%) working class, unemployed, or on limited income adults have never switched their current account[3]. That’s compared to four in five (79%) upper- and middle-class professionals who have, a third (33%) of whom did in the last 12 months alone.

- ENDS -

Notes to editors

Research conducted by YouGov between 24.02.20 and 05.03.20.

Nationally representative sample of 1422 UK adults with a current account, who have either switched current account in the last 12 months, considered switching current account in the last 12 months but didn’t, or are considering switching current account in the next 12 months.

About Cardlytics

Cardlytics (NASDAQ: CDLX) uses purchase-based intelligence to make marketing more relevant and measurable. We partner with major financial institutions – including Lloyds and Santander – 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 London, New York, San Francisco, and Visakhapatnam. Learn more at www.cardlytics.com.

[1] Figure based on 7% of latest figure from Statista on the number of adults in the UK with a current account: https://www.statista.com/statistics/936174/number-of-adults-with-a-retail-or-savings-bank-account-united-kingdom/

[2] 12% of people said they would consider switching in the next 12 months; figure based on the previously mentioned Statista figure for the number of adults with a current account

[3] C2DE Social Grade

There’s no question, technology is reshaping the banking experience. But whose experience is it changing and to what benefit? To answer this question, Cardlytics analyzed the spending behavior of today’s tech-savvy bank customer across over 1,500 financial institution partners and found that bank rewards programs do much more than just appeal to savers. They attract young professionals in their 20s and 30s, transitioning through new life stages, and transform these valued customers into engagement superstars.

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