Fintech Provides Added Value With Card-Linked and Merchant-Funded Offers

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Buying a cup of coffee or paying bills online–whether you realize it or not, you’re using fintech.

Fintech is the integration of technology (tech) into financial service applications (fin). Financial technology (Fintech) is used to describe new tech that seeks to improve and automate the delivery and use of financial services. Initially applied to the backend of banks and other financial institutions, this technology has grown to be much more consumer facing. Using fintech, individuals can now pay for meals, manage stocks, check their bank account, transfer funds and more — all using a smartphone.

Fintech Examples

  • Banking
  • Mobile payments
  • Budgeting apps
  • Insurance apps
  • Crowdfunding platforms
  • Robo-advising and stock-trading apps
  • Blockchain and cryptocurrency
  • Fintech stocks

Low-Cost Member Benefits Attract and Keep Customers

Today, businesses such as banks and other financial institutions have two major challenges — acquiring and maintaining customers. Acquiring new customers often requires a significant investment. According to a 2018 article by Forbes, attracting new customers will cost a company five times more than maintaining existing ones. In order for these businesses to make a return on their investment, they must recuperate the acquisition costs for new customers and retain the customer long enough to make additional money. Banks, for example, will often increase fees and cut services in an effort to recuperate costs but that drives away existing customers. So the question is, how can these businesses attract new customers with low acquisition costs and keep them long enough to make additional money?

Card-Linked Offers and Cash-Back Loyalty Programs

Card-linked-offers, or CLOs, tap into the power of fintech by connecting to an existing app, such as a banking or financial services app. When a person opens the app and begins to use it, they will notice a list of consumer-targeted offers. These offers can be for local or national restaurants, an in-store purchase on retail items, travel and entertainment discounts or almost anything a customer can buy. Each offer is tied to a rebate, credit or percentage of cash back on that purchase. The consumer clicks through to an app or account sign-up form. They then link their bank or financial institution’s credit card to the offer and then use that same card to make their purchase. Once they’ve made the purchase, they receive the reward.

CLOs Offer Banks and Financial Institutions a Way To:

  • Attract new customers
  • Enhance relationships with existing customers
  • Inspire loyalty
  • Increase online and mobile use
  • Increase card spend
  • Build relationships with business customers
  • Gather more data and predictive analytics
  • Innovate and develop more relevant marketing strategies through social media

The CLO space is worth an estimated $10 billion and CLO transactions have grown more than 100%. Targeting customers with the right offer at the right time with geo-location is important to adding value to traditional loyalty programs. Whether the loyalty program uses a points-based program, statement credit or rebates, businesses need offers that appeal to the target audience to redeem things most relevant to them.

Building Your CLO Program

Once you’ve decided that a CLO is right for you, you’ll want to do some research. Like many, you’ll likely come to the conclusion that finding and acquiring restaurants, retailers and other merchants can be both challenging and expensive. Starting your own sales team, managing your merchant network, etc. takes a lot of time, sales hours and administrative support.

To create a successful and appealing program, you’ll need the right blend of national and local offers. Although having a local presence may not seem as important to some, a survey of 1,000 American consumers and 1,000 small business owners found that six in 10 millennials were expected to shop more with small businesses in 2019. The survey also found that nearly half of millennials (45 percent) would spend more on a product or service if it meant they were supporting a small business, compared to just 27 percent of consumers aged 55 and older.1Thus, curating a local, as well as national, presence can make this an even more challenging endeavor if you choose to go it alone.

Finding a CLO Partner

At Entertainment, we’ve been building upon our Best-in-class discount network since 1962. Our merchant team deployment and acquisition strategy has resulted in an exclusive collection of national and local savings that cannot be replicated by other aggregators and content providers.

Our merchant team consists of sales, service, operations and customer success professionals with a single goal in mind — connecting the end customer with the best savings and brands throughout North America. No other company has the experience or direct relationships with the volume of local, regional and national merchants featured in the Entertainment®network.

  • North America’s largest savings network – over 500,000 ways to save
  • Deepest discounts – BOGO and up to 50% savings
  • Directly contracted with merchants
  • Discount categories your customers and employees will use every day – dining, attractions,
    travel, shopping and more

Entertainment® Rewards & Incentives has over decades of experience helping organizations acquire new customers and build loyalty with their audiences. Our custom solutions create engagement at all stages of the audience lifecycle.

    • Acquisition
    • Expansion
    • Retention
    • Loyalty
    • Advocacy

Custom-Curated Content and Special Promotions

Our Merchant Team can build exclusive discount offer content directly for your business or organization with brands and offers that fit your demographic. We have relationships with some of the largest organizations in the U.S. and Canada and are constantly negotiating high-performing offers for our clients.

Would you like to learn more? Let’s connect! Tell us about yourself and we’ll evaluate how we can help your business.