Browse All Articles

Each year, Time Magazine selects a “Person of the Year” to be profiled in its end-of-year issue. This person, group, idea, or object is one that has done the most to influence that year’s events. If last month’s Advertising Week in New York was any indication, the 2019 “Person of the Year” will be “The Consumer,” because consumer personalization and consumer experience dominated the conversation as the top areas to focus when building your 2019 marketing plan.Studies show that today’s consumer is presented with roughly 5,000 advertising messages every day. As a marketer, how can you cut through the noise and gain the attention you need to drive return on your investment….? By personalizing your product offering and delivering it through a native channel that provides a seamless consumer experience.With the continuous growth of technology, consumers have the world at their fingertips. But given our “always on” society, they don’t have the time or the desire to search for the products most relevant to them. They want those products, with any additional savings or rewards, to come directly to them through their normal everyday interactions. That’s why native advertising channels can be so effective, especially when they’re part and parcel of consumers everyday interactions, and the ads are personalized to the consumer.At Cardlytics, our direct partnership with banks gives us a secure view into where, when, and how much consumers are already spending. Using these insights, we can help develop advertising promotional campaigns that are personalized based on past purchase transaction behavior.These personalized ads are delivered as promotion offer content within a native banking channel, which includes mobile and online banking. When consumers log into their bank account, they will see these relevant cash back promotion offers, which enable them to save money when they make future purchases.It’s a seamless experience for the consumer, because with one click, every time they shop at the activated reward location, they save a portion of their spend. That money saved will be directly deposited into their bank account with no additional effort or attention needed. It’s quick and easy for the consumer, ensuring relevancy and boosting engagement.And for advertisers, it’s a real boon because the average incremental return on ad spend is about $5:1. The return is so high because of the personalized purchase behavior-based targeting, and the pristine behind the firewall environment, which increases consumer engagement with the offers – there are no bots, no fraud, no viewability issues, and no objectionable content for marketers to worry about.So how can we support your 2019 marketing plan by cutting through the clutter and targeting the demands of that “Person of the Year” through a seamless, personalized experience? Contact us to learn more.

Pumpkin spice is wafting through the air, and you know what that means:The holidays are officially upon us.As more customers take their holiday shopping online and skip the Black Friday lines, it’s critical for marketers to keep a pulse on where, when, and how shoppers will tackle their gift lists this year. By analyzing $1.5 trillion in purchase data from our 2,000 bank partners, Cardlytics is able to identify key trends in holiday spend behavior. While we put these insights to action every day for our advertiser partners through our native bank channel, we’ve developed a special 2018 Holiday Spend Trends Report for all marketers to leverage leading into this busy shopping season.Here are four purchase trends every marketer needs to know to capture the most spend all season long:Brick & Mortar stores slow loss of share by driving sales online With more customers turning to e-commerce retailers like Amazon, traditional Brick & Mortars saw a decrease of nearly 2% in their share of holiday spend at physical stores. Interestingly, their online and mobile properties held steady against further share shift to purely online competitors—indicating that online shoppers are still paying attention to traditional retailers well known for their holiday deals.Black Friday and Cyber Monday are only one (less important) piece of the pieIn the last few years, spend across the season has shifted to both well before—and well after—Black Friday and Cyber Monday. As a result, the mid-season spike in spend that you would expect to see around the retail event was less significant than in years past.Holiday shoppers fall into four distinct timing segmentsWhat’s the most cohesive way to segment and understand holiday shoppers? By looking at when people do the bulk of their holiday spending. We identified four distinct timing segments: Early Birds, Black Friday Warriors, Procrastinators, and Steady Shoppers. Steady Shoppers account for 40% of all holiday spend, so it is critical for marketers to stay top of mind with ongoing marketing campaigns throughout the season.‘Tis the season to acquire new customersAs customers shop for loved ones, they are more likely to try a new retailer or category for the first time. In 2017, gifting categories such as children’s apparel & toys, department stores, and sporting goods saw the highest percentage of new customers for the holidays.Learn about these trends in more depth and get actionable tips to capture spend throughout the holiday season in our full report.

Last week, Cardlytics hit the main stage at Advertising Week in New York with some of the top retail and marketing brands in the U.S. Rachel Sonenshine (VP, Ad Partnerships, Retail East), Randall Beard (Group President, Advertisers) and Dani Cushion (Chief Marketing Officer) each had the opportunity to participate in a panel, sharing Cardlytics’ unique view into how marketers across a variety of verticals are using data-driven marketing to drive incremental sales.More specifically, on Monday morning Rachel Sonenshine spoke about The New Retail Game. Joining her was Jeff Fagel, SVP and head of marketing for Epsilon and Conversant; Suz Lampert, VP of ad sales for GasBuddy; and Dallas Lawrence, chief communications and brand officer for OpenX. Moderated by Lydia Belanger, associate editor for Entrepreneur.com, Rachel talked to the audience about translating online presence to offline purchase, the importance of listening through consumer data then applying key lessons learned through personalization, and how Cardlytics can help retailers remove any transactional blind spots.That afternoon, Dani Cushion moderated a brand panel with Joshua Stein from Hilton Hotels, Julie Sukosd from UnderArmour, and Kevin Keith from Orangetheory. During this Loyalty Across Verticals panel, Dani expertly guided the speakers through topics that included degrees of loyalty, relevance, using tech for good versus evil, and measuring incrementality while building brand love.Finally, on Thursday Randall Beard was a Future Teller with Aimee Irwin, VP of strategy for Experian and Rohini Sen, data sciences client lead for Wavemaker. In this data insights and opportunities panel, Randall discussed data as a value exchange and ensured that the audience understood how the data Cardlytics sees is real, based on actual purchase data through credit and debit card spending. He also made sure the retailers in the audience knew how important it is to be able to see when their clients are shopping elsewhere so they can target them with rewards to bring them back.Keep following the Cardlytics blog and watch for a second Advertising Week post to come soon, highlighting the key advertising and marketing trends learned throughout the week.

Back-to-school (B2S) shopping season is ending. Hopefully, you leveraged Cardlytics’ 2018 Back-to-School Spend Report to understand key B2S spend trends and boost sales this season. But, now, marketers concluding B2S may be wondering, “What’s next?”After the B2S season ends, it may be tempting to hold on another big marketing push until the winter holidays. However, it’s critical to keep the momentum going during the fall to stay top-of-mind leading into the heavy winter holiday shopping season. In fact, Cardlytics’ purchase insights show that last year the majority – almost 60% – of holiday sales were from repeat customers in 2017. Additionally, customers acquired during the fall spend 7% more during the winter holidays than newly acquired customers. These purchase insights show that fall is a key timeto acquire customers who will really move the needle during the winter holidays, A.K.A THE BIGGEST SHOPPING SEASON OF THE YEAR.Below are a few tips for acquiring new customers this fall.Leverage Real Purchase BehaviorIn this new era of data abundance, it can be hard to choose the data sets that will help you identify the right customers. While other data can offer glimpses of a person’s needs and wants, the best predictor of what someone will purchase in the future is what they’ve purchased in the past. When serving advertisements, leveraging actual purchase data ensures your ads are reaching relevant audiences. After all, a 31-year-old man who is single with no children will not want the same advertising as a 31-year-old man who is married with two children.Make it Easy to Cash-in on OffersWhile consumers are more cost savvy, they do not want/have the time to cut coupons. Cash-back offers that are served digitally, like the rewards program from Cardlytics, allow consumers to select an offer easily online or on their phone. Specifically, Cardlytics’ rewards are served through a consumer’s banking channels, so no additional app or login is required. And, once the customer selects the offer, he/she can easily redeem the rewards by shopping with the brand (online or in-store) using the bank card associated with that account.Evaluate and Make ChangesBrands should deploy marketing campaigns that allow them to measure both the online and in-store impact. While online is growing year over year, 92% of sales still take place at a physical location. Because of this, it is key that marketers be able to close the loop between online advertising and in-store sales. Once fall concludes, marketers should look at how their campaigns drove actual online and in-store sales, not just eyeballs and clicks. Then, make the necessary adjustments for a fruitful winter shopping season.The key to acquiring fall customers is deploying marketing strategies that marry both quantity and quality. Instead of throwing spaghetti at a wall to see what sticks, marketers should aim to reach actual likely buyers, at scale – meaning a large quantity of the right consumers. Keeping the sales momentum from B2S into the fall will make for a more abundant winter holiday sales season and an overall better return for the year.

Although football may not have “come home” for England, this summer’s headline sporting event, the World Cup in Russia created unprecedented levels of national excitement in the UK in a way that only football seems able to do.

This sense of anticipation was not just contained to people’s living rooms, as the British High Street quickly became one of the big beneficiaries of the World Cup effect, with pubs and bars emerging as clear winners.

According to Cardlytics UK purchase insights, which is based on more than half a million football fans, the initial knockout stages were the busiest week in British consumer spending, when compared to the rest of the tournament.

During the week that England took on Colombia and Sweden in the round of 16, all categories experienced double-digit growth compared to the week before. Specifically, sports outlets, such as Sports Direct, Nike, Asics and Under Armour, experienced the highest increase.

The spending figures also reveal favourable levels of spending compared to England’s last major international football tournament: the first two weeks of the World Cup saw five out of six High Street categories increase, resulting in a 9% sales uptick compared to Euros 2016.

Knockout week the real game-changer

The first week of knockout-round fixtures provided the biggest retail boost across all categories.

As the tournament headed towards its latter stages, the fashion and sports outlets saw the biggest increases, of 21.3% and 25.7% respectively.

Grocery chains (+15%) and pubs/bars (+14.7%) also benefitted, as fans gathered in pubs and homes to watch England’s crucial R16 and quarter-final fixtures.

In total, all categories experienced a 15.3% increase compared to the previous week.

Playing it safe with pizza

Opting for the dining equivalent of ‘Route One Football’, pizza was the most popular food option during the tournament.

Spending with pizza delivery brands such as Domino’s and Papa John’s increased in the first two weeks of the World Cup, compared to the prior two weeks. Major brands, like those, also outperformed traditional delivery services by nearly three times during the initial knockout week.

Big spending for the big occasions

What this particular data shows marketers is that football fans have become a huge consumer group, and their spending can be particularly powerful during big-ticket events such as the World Cup.

Marketers should stay on top of how spending habits are affected by headline events, as it helps them to understand their target audience even better during these crucial moments. Furthermore, enhancing the understanding of these patterns with clear data presents an open goal for brands and retailers – missing it will leave them on the sidelines.

The back-to-school (B2S) season is one of the most critical periods for retailers to reach sales goals. And, with major shopping events like Amazon Prime Day and the continued growth of online channels, the way consumers are buying for B2S is changing. However, even with the growth of digital channels, we see that in-store still wins the most share for B2S, over 73%.What does this mean? Retailers that want to capture the most share need to have a lock-step approach that leverages digital channels and drives in-store sales.With a view into +$1.5 trillion in spend across credit, debit, ACH, and bill pay, Cardlytics recently released The 2018 Back-to-School Spend Report. The report explores the spend trends that marketers need to know to capture the most share this season.B2S Spend is GrowingIn 2017, B2S spend grew nearly 3% year-over-year. This was driven by an increase in spend per purchase, with spend per purchase growing nearly 1% year-over-year. Interestingly, we see that the number of purchases decreased, indicating that consumers are making fewer, yet more impactful shopping trips.Online-Only Capturing Bigger PurchasesThe increase in spend per purchase was most evident in online-only channels. In 2017, online-only spend per purchase grew by 7.2%.Brick & Mortar.coms (B&M.coms) Catching on to Prime Day Amazon Prime Day continues to pull spend forward. However, we see that B&M.coms are catching on to this earlier spend. While in 2016, B&M.coms decreased in share, they stayed flat in 2017.Prime Day Shoppers More ValuableWe see that customers who shopped during the week of Amazon Prime Day spend more in every channel during the B2S season than customers who did not shop during the week of Prime Day. Additionally, customers who shop at any online channel the week of Prime Day spend more online the week following Prime Day.With digital channels changing how consumers shop, but in-store continuing to dominate channel share, retailers need to execute marketing campaigns that reach consumers online and drive in-store spend.

• Cardlytics Direct allows retailers to reach consumers with relevant ads directly within their online and mobile banking. These ads also encourage in-store spend as the rewards are linked to the consumer’s bank card, so they can easily save while shopping in-store.
• Retailers should consider B2S ship-to-store deals. Often, once the consumer is in the store to pick up their online order, they do additional shopping.
• During the first week of school re-opening, retailers should consider offering additional deals, which allow parents to pick up last-minute items.

For more back-to-school spend trends, download The 2018 Back-to-School Spend Report.

The back-to-school (B2S) season is widely known as one of the most critical periods for retailers looking to increase their annual bottom line. Accounting for nearly 20% of spend that occurs outside the winter holidays, Cardlytics’ purchase insights show that overall spend for retailers grew faster during the B2S period than the rest of the year. However, retailers aren’t the only ones who can take advantage of the B2S shopping season. Back-to-school season is a key time for restaurants to capture spend, as well.According to The Cardlytics 2018 Back-to-School Spend Report, B2S spend grew nearly 3% from 2016 to 2017. And, while you may be thinking that online accounted for all that growth, it’s important to note that brick & mortars captured more than 73% of that spend in 2017. What does that mean for restaurant marketers? LOTS OF FOOT TRAFFIC!Here’s how restaurants can capitalize on the increased foot traffic that occurs during the B2S season.Offer deals for back-to-school shopping receiptsRestaurants should consider giving diners “extra credit” for completing their B2S shopping. Offer diners a free appetizer or dessert for showing their back-to-school shopping receipt. Restaurants can also use this tactic to help the community by offering the same reward for bringing in a small school supply donation, e.g., an extra set of pencils or a backpack.Give diners offers they can use on the goBack-to-school shoppers are busy trying to ensure they get all the supplies they need. Food is likely the last thing they’re thinking of until their tummies remind them. Cardlytics’ cash-back rewards are delivered directly through a banks’ online and mobile channels, which means consumers can access them while finishing up their back-to-school shopping.Make it easy for them to dineAfter a long day of shopping, back-to-school shoppers will be ready to eat, but they may not want to sit in a restaurant. Offer specials on family takeaway meals that diners can order and pick up easily.For more B2S purchase insights, download The Cardlytics 2018 Back-to-School Spend Report.

Technology is driving change in consumer behaviour wherever you look. Whether it’s through smart devices, wearables or virtual and augmented reality, these new technologies are reshaping behaviours and spending habits.

Cardlytics’ latest UK spend index, which tracks the card spend of 3 million bank customers, shows how technology, including online delivery services, are impacting the restaurant industry.

Consumers are eating out less, instead dining-in via online delivery. Companies, such as Just Eat and Deliveroo, are providing delivery access to an ever-increasing number of restaurants through convenient apps, and high street restaurants are feeling the pinch.

Spend on delivery services was up by 17% year-on-year in Q1. This followed a 14% rise in Q1 2017. However, spending on eating out grew by only 3% year-on-year in Q1 2018, compared to 9% growth in Q1 2017.

Given the major growth witnessed in the years before, with spend increasing by 10% year-on-year in Q1 2017 and 17% in Q1 2016, it paints a picture of an industry that is beginning to stall.

Casual dining has been among the worst hit. It accounted for almost half of people’s restaurant spend only two years ago; it now sits at just over 40%. Spend on casual dining in Q1 fell by 1% year-on-year. The struggles of casual dining are evidenced by the well-publicised troubles of many household name restaurants over the last year.

However, amid the doom and gloom, there are reasons to be hopeful for physical dining:

• Takeaway opportunities: As popularity of delivery services continues to surge, the likes of Deliveroo are providing access to restaurants who haven’t previously offered their own takeaway services.
• Cold nights keep diners indoors: A particularly cold winter has made the landscape even more challenging for casual dining, while presenting a boost for delivery services. With the weather getting warmer, customers will be more inclined to visit physical restaurants.
• Get creative: With diners more disposed to dining out, restaurants would be wise to explore new partnerships and diversify their rewards and offers to entice back customers over the summer months.

What it all boils down to though is profitability. With margins being increasingly squeezed across the industry in 2018, restaurant owners are having to take a long hard look at their physical high street presence and examine whether their strategy is still sufficiently different to foster loyalty amongst increasingly discerning customers.

Ultimately, those that fail to make the most of the tools available to them – covering everything from smartphone apps to rewards systems – will continue to struggle.

The phrase “picking up a few things for dinner” used to mean the same thing to nearly everyone: a quick run to the local grocery store. However, now that delivery, discount, and meal kit brands are disrupting the traditional grocery industry, there are many ways shoppers can put food on the table.The consumer is in control. And, they are leveraging a variety of channels to put food on the table. Looking at +$1.3 trillion in actual spend across credit, debit, ACH, and bill pay, Cardlytics published a grocery state of the industry. The report, titled How is Grocery Spend Changing Across Meal Kits, Specialty, Delivery, Traditional, & Discount?, highlights how the changes in grocery are shifting food dollars and evolving the marketplace.A few key findings:

• Convenience continues to be important In 2017, we saw 4.6% of customers using convenience channels like meal kits or delivery. And, online grocery spend in 2017 grew nearly 100%.
• Discount grocery means savvy shopping vs. limited resources Discount grocery experienced a consistent 8-10% annual growth in 2017, demonstrating that consumers want both convenience and affordability.
• Surprising acquisition periods
• While shopping trials spike during Thanksgiving and Christmas, most customers don’t return the following year. An interesting finding, given that most grocers consider this a key time to acquire new customers.
• Traditional grocery customers acquired during the week of July 4^th are more likely to be retained. This means grocers are not relegated to the winter holidays to attract new shoppers. They should keep a steady drumbeat of marketing to attract new customers year-round.

So, how do brands survive in this changing era? Purchase-based targeting and sales-driven measurement. That means targeting based on actual purchase behavior, instead of demographics, and evaluating success based on actual sales, instead of clicks and attributed sales.While grocers can track what their customers do when they’re in the store; they’re left with a blind spot once the customer leaves. This often leads to misinformed marketing. For example, while a customer may seem brand loyal, they may actually be heavy category shoppers. It’s important to have a “full-wallet” view of how customers are shopping with you and your competitors. Additionally, it’s critical to evaluate success based on metrics beyond clicks and brand awareness. Grocers need to understand how their campaigns drove actual in-store sales.As grocers face increasing competition, Cardlytics has helped them bring shoppers back in a 16-35% lift in transactions and a $6.51 - $9.23 increase in incremental revenue for every $1 invested.Interested in how Cardlytics can help you increase spend this year? Contact us. Click here to download the full grocery state of the industry report.