Ed Braswell, president and CEO of edo, a leader in personalized card-linked offers, told Loyalty 360 that industry research estimates there will be 450 million credit cards linked to card-linked offers in the next three years, generating $3.5 billion in annual revenue.
“There is great momentum in the card-linked offer space,” Braswell said. “We continue to see the acceleration of cards and banks participating and the acceleration of merchants participating.”
edo delivers advertising with in-store results through card-linked offers that are automatically available on credit cards, debit cards, and mobile devices.
“When you create accelerated card growth and bank participation, it makes it very advantageous for merchants, advertisers, and marketers,” Braswell explained. “We’re able to increase basket size and measure attribution. Those elements are driving this.”
Advertisers are spending five times as much now compared to one quarter ago, Braswell said.
“We’re seeing phenomenal (350%) ROI returns for advertisers,” Braswell said.
Once an offer is redeemed across the network, on average consumers are spending 40% more compared to average spend without a merchant, Braswell said.
Chris Campbell, director of products for edo, told Loyalty 360 that we’re establishing loyalty as well.
“There are no discounts offered on the second purchase,” Campbell said. “We’re digging into the data and building sophisticated modeling and we’ve seen behavioral changes. It’s a pretty simple model that we can easily drive business behavior by generating new customers and increasing average ticket size. It’s very data driven.”
Data insights fuel conversions and Loyalty Card-linked offers are fueled directly by consumer shopping habits, unlike other local marketing options that fail to prove ROI, attract the right types of customers, and build loyalty. edo Marketplace gives merchants the marketing data needed to attract new customers and monitor redemptions to prove ROI.
Edo Marketplace is a card-linked offer platform that allows merchants to create their own targeted offers redeemable on consumer credit, debit, and prepaid cards. The newest version of edo Marketplace provides merchants direct access to data-driven marketing tools to quickly research and setup card-linked offers on their own within minutes.
Campbell said that, within top performing campaigns run on the edo network, 80% of customers redeeming offers are new customers, and 50% of those customers return at least once within 90 days.
Braswell said the majority of offers are storewide merchant-based offers.
“We anticipate some product level offers in 2014,” he added.
Braswell said edo is able to collect authorizations and settlement data on a real-time basis to see where customers are spending based on store location and purchase amount and “we use that for precise targeting.”
Braswell advises brands to find the best partner that can deliver a consumer experience second to none leveraging email, SMS, mobile channels, and offer notification.
“Bank partners have to take an active participation role to promote this loyalty product and their marketing efforts are key,” he said.