Card-linked offers, or promotions aimed at encouraging consumers to use credit or debit cards, are very popular with consumers. That is, once you use it. According to PYMNTS Intelligence’s report, “Card-linked offer growth relies on first-time users,” 93% of cardholders plan to take advantage of a card-linked offer again in the near future after taking advantage of it for the first time. is the answer.
However, in the report, Banyan A survey of more than 2,100 U.S. consumers found that 73% of consumers who have never used a card-linked offer in the past say they know little or nothing about these programs. I found out that the answer is no.
In fact, 34% of consumers say they have never heard of card-linked offers, and 25% of non-users either don’t understand how offers work or don’t want to use them. He says he feels uncomfortable doing so.
For consumers who aren’t currently taking advantage of card-linked offers, two key factors will prompt them to consider taking advantage of card-linked offers: familiarity with the program and having an offer that fits their needs. It says that it will be. In particular, non-users say they would accept these offers if they could find them first. 16% say increased visibility is the most important factor for starting to take advantage of card-linked offers.
These findings highlight the need to educate consumers about card-linked offers and the potential value they provide. Education alone is not enough. Providers must ensure that benefits are relevant to cardholders to emphasize their value. 30% of non-users say the offers they receive don’t speak to them.
What is the best way to inform consumers about the offers linked to their cards, the value they can provide, and their relevance?
Who the messenger is and how trusted the messenger appears to play a key role in consumers’ interest in card-linked offers.
44% of cardholders said they first learned about offers linked to their card from their primary financial institution (FI) or a merchant they frequent, i.e., a trusted messenger. Additionally, 13% of cardholders attribute their card benefits to a friend or family member who brought them to their attention, as consumers are more likely to value recommendations they receive from people in their inner circle. thinking about. On the other hand, ads and third-party notifications promoting card-linked offers had the lowest response from cardholders, likely due to the lack of a trust factor.
With nearly all card-linked offer users saying they plan to continue using their cards, it is imperative that merchants and financial institutions encourage consumers to take the first step. And what if that inspiration comes from a trusted source that explains its value and relevance? Both are likely to rise.
