Big data card offers boost retail sales
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This document discusses card linked offers and the competitive landscape in this space. Card linked offers provide shopping deals linked to consumers' credit and debit cards. The market for card linked offers is $115 billion with 467 million consumers. Major competitors in this space include Cardlytics, Cartera Commerce, Edo Interactive, and FreeMonee. FreeMonee focuses on more personalized offers based on spending habits and aims to refund consumers faster than competitors through its gift underwriting engine.
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Big data card offers boost retail sales
- 1. Jennifer Ko, Jenny Quach, David Tamayo, ShinichiroYamamoto Card Linked Offers Big data in Financial Services
- 2. Outline • Big Data Relationship with Financial Institutions • Card Linked Offers • Competitive Landscape • Company Comparison • Freemonee • Freemonee G2M Strategy • Conclusion
- 4. Big Data Value to Enterprise
- 5. What is Card Linked Offers ? Card Linked Offers are shopping deals linked to the credit and debit cards consumers already have, use and value
- 6. Why Card Linked Offers ? http://www.baypayforum.com/opinions/entry/card-linked-offer-clo-solutions-a-peek
- 10. Categorized by Relationship Bank to Consumer Contact Webpage to Consumer Contact Retailer to Consumer Contact
- 11. Bank to Consumer Notifications • Offers based on transaction history of consumer • Offer notification sent from banks to consumer
- 12. Competitors Comparison Company Banks Merchants Cardholders Cardlytics 400 4000 Potential: 220 million 35 million cardholders Cartera Commerce 200 2000 - 3000 Potential: 150 million 65 million cardholders Edo Interactive 200 1000 Potential: 200 million FreeMonee 4 100 Potential: 40 million 165,000 cardholders
- 13. Competitors Comparison Company Merchant Interface Refund Time Offer Type Cardlytics No End of month General offer based on category Cartera Commerce Yes A few weeks after transaction General offer based on category Edo Interactive No, but charges only profitable campaigns Immediate Merchant determined offer FreeMonee No 2 - 3 Business days Personalized off based on spending habits
- 14. FreeMonee • Better technology, more customized offers • Gift Underwriting Engine - patent pending • Money back sooner than competitors • Shorter expiration for offers, sense of urgency to use offer
- 15. Freemonee G2M Strategy • Focus on forming relationships with big banks ( Platform strategy) • Acquire strong portfolio of merchants • Gamification to motivate customers • Open Innovation among partners
- 16. Conclusion • Awareness of S-Curve and disruptive technology • Open Innovation with partners • Confidentiality of customer information Groupon Card linked offer ?
- 17. Thank you !
- 18. Webpage to Consumer • Offers not based on consumer history • Login required • Desired offer is selected and loaded onto the card
- 19. Retailer to Consumer • Retailers determine offers
- 20. Credit Card Company Offers • Rewards programs and cash back offered by banks and credit card companies
- 21. Appendix
- 22. Key Issues • Market • Market Size & Trends • Customers (Segmentation) • Channel (Partnership) • G2M Strategy • Product/Service • Technology ( Predictive Analysis) • Challenges
- 24. Credit Cards
Notas del editor
- Big Data is making a big impact already in certain industries such as the healthcare, industrial, and retail sectors. With the exception of the government sector, no other industry has more to gain from leveraging Big Data than the financial services sector. Big Data technology will help financial institutions maximize the value of data and gain competitive advantage, minimize costs, convert challenges to opportunities, and minimize risk in real-time. Big Data technologies provide financial services firms with the capability to capture and analyze data, build predictive models, back-test and simulate scenarios. Through iteration, firms will determine the most important variables and also key predictive models.
- Technology, Product/Service, Market 3C 4P GTM Strategy Challenge &Opportunites International Opportunities
- Big data- datasets whose size is beyond the ability of typical database software tools to capture, store, manage and analyze Subjective- assume that as technology advances over time, the size of data sets that qualify as big data will also increase Value for world economy- enhance productivity and competitiveness of companies and public sector and create economic surplus for consumers
- Categories Rewards and discounts Financial management Targeted offerings Financial education Savings and investments Security Smartphone applications Payments Miscellaneous What kind of data ? daily transactions market feeds customer service records location data click streams
- Card Linked Offer is a transaction-based marketing which can deliver offer, based on result of analysis of your debit/credit/prepaid cards and usage. Merchants Create deals and market deals to you via card web portal or online statement or even text message depending on the vendors . You know about the deals You shop the deal All transaction are anonimously tracked . Merchants pay performance marketing fee to CLO vendors Consumer gets extra cash based on the deal
- This is a value chain of the card linked offer We have four players, Customer loves coupon. So once you register your card with CLO program, you can automatically get attractive offer. You don’t need to search, print. You can save and use at the right time and right place. Merchant love precise- targeting of customer. They love loyal customers, they love to attract new customer. CLO increase customer engagement and loyalty and since its more precise targeti marketing program, it gets high return on investment about its marketing and campaign. Banks also need customer engagement. CLO would be able to increase usage of cards in turn transactions Since CLO can add good value on the bank, it help bank to get new customers Cardlinked offers create win-win-win situation in the payment ecosystem. Overall, New effective digital advertising channel Connect digital advertising to in-store sales Based on consumer purchase transaction
- - Face amount of transaction is expected to be $115billion - Total card transaction with linked offer redemptions is expected to be 1.7billion -Card-linked programs will include over 460 million U.S. credit cards by 2015 CLOs (Card Linked Offers) revolves around offers based on credit/debit/prepaid cards and their usage. It is a transaction-based marketing program. The program- with a well crafted model – delivers immense benefits to the consumers, merchants and the banks. By 2015, it’s projected that the number of U.S. credit cards enrolled in a card-linked program will exceed 460 million, generating $115 billion in additional revenue.Banking institutions see this as a winning program to build customer loyalty while increasing card activity. Card-linked offers are quickly becoming a must-have program for forward-thinking financial institutions. http://www.baypayforum.com/opinions/entry/card-linked-offer-clo-solutions-a-peek
- Here is a relationship among different entities and players in this area. There are different entities. Consumer, merchants, payment center, When we talking about CLO vendors, we can categorized by what partnership the vendor has. So we have three different categories. Partnership with banks and get data from banks, based on the transaction data and account history 2. Partnership with brand 3. Partnership with payment center
- Microsoft
- Microsoft
- Cardlytics: Leader in terms of network first mover advantage, Cartera: more Freemonee: Last to market
- Unlike Cardlytics, which has the first mover advantage and partner with the most bank in the U.S, FreeMonee still have a place in the card linked offer market because of innovation. First of all, by using Gift underwriting engine, FreeMonee could determine the customized gift to customer, encouraging an unplanned visit and further generate revenue to merchandise. Secondly, the shorter period of cash back incentives customers to use offers provided by Freemonee more Finally, with quick expiration feature of offer, not only urging customers to use it but also enable merchandise to track the efficiency of promotion
- But still, there are some new strategy that Freemonee could adopt it Partnership with big bank and diversified merchants to be able to access more customers Open innovation among partners and clients in order to solicit new ideas that may boost the redemption of coupon Gamification feature, such as the more offers customers redeem, the more possibility to get secret offers
- In the card linked offer industry, Because of the high tech feature, S-curve might be shorter than other s curve in other industries Card linked offer is gradually replace daily deal such as Groupon& living social What’s the next curve? Would it be possible that payment system such as Paypal combine with card linked offer? Standards war Now, different companies have different Refund time/ reward time/ deal type/ and ways customers redeem the offer Open innovation with not only merchandises but also end users could put them in more competitive positions It’s hard for card linked offer industry to has a standard platform that has all consumers information as banks prohibit those companies from moving data from server for safety consideration. How could companies integrate resource to provide customize offer and to generate better profit?
- By 2015, it’s projected that the number of U.S. credit cards enrolled in a card-linked program will exceed 460 million, generating $115 billion in additional revenue. Banking institutions see this as a winning program to build customer loyalty while increasing card activity. Card-linked offers are quickly becoming a must-have program for forward-thinking financial institutions. https://walla.by/blog/45841966850/save-more-with-card-linked-offers http://www.bigdata-startups.com/financial-services-industry-use-big-data/ http://www.bigdata-startups.com/understanding-business-descriptive-predictive-prescriptive-analytics/ Indusry Companies Technology: Big Data, Predictive Analysis
- Technology, Product/Service, Market 3C 4P GTM Strategy Challenge &Opportunites International Opportunities