Survey Shows Card-Linked Marketing Programs Are Highly Effective, but Rarely Done
April 22 2014 - 10:00AM
Business Wire
BankAmeriDeals/CMO Club Poll Reveals Revenue
Lift and Satisfaction Among CMOs for Card-linked Marketing
Card-linked marketing programs - like BankAmeriDeals®, an online
and mobile cash back deals program for Bank of America® customers -
are highly effective in increasing revenue, customer insights and
advanced targeting to marketing programs, but are underutilized by
chief marketing officers (CMOs), according to a new survey released
today by Bank of America and The CMO Club.
The survey, which polled CMOs on their preferences and marketing
program needs, found that card-linked marketing may be the
industry’s best kept secret. Of the CMOs who had used card-linked
marketing, nine out of 10 experienced revenue lift from a program,
98 percent deemed it an effective solution for reaching their
target audience, and 96 percent are planning to use card-linked
marketing in future campaigns.
“With BankAmeriDeals, we can offer benefits to all of our
customers, using card-linked marketing to make it easier for the
consumer to earn cash back while driving more engagement for the
merchant through careful targeting,” said Jason Blackhurst, senior
vice president and Emerging Capabilities executive at Bank of
America. “However, our new survey data underscores that CMOs
understand that targeting and customer insights are critical, but
very few turn to card-linked marketing to obtain this kind of
precision.”
While highly effective, these online and mobile cash back deals
programs are not yet fully understood. According to the survey,
while 78 percent of CMOs say they know what card-linked marketing
is, more than half (62 percent) have never implemented a program.
Of those who have never used it, 53 percent say they don’t know how
it works and one in three (34 percent) admit that they are unsure
of its effectiveness, which suggests that many marketers are
missing a key opportunity to connect with and grow their customer
base.
BankAmeriDeals reaches 29 million of Bank of America’s growing
online and mobile banking customers, offering relevant deals to
them based on past purchase behavior while creating a targeted
marketing solution for merchants. The offers appear in online
banking and mobile apps, allowing customers to choose the deals
they want while managing their finances. Cash back is in addition
to other rewards and is put into customer accounts. Customers can
find more information about the product and sign up at
www.bankofamerica.com/Deals.
The scale of the program, run by Cardlytics through its targeted
advertising network, makes it one of the flagship implantations of
card-linked marketing programs. Since its launch in 2012,
BankAmeriDeals has provided targeted deals from more than 4,000
national, local and regional retailers and restaurants, serving
more than 400 million offers, saving customers more than $20
million, and helping merchants generate more than $730 million in
measurable, incremental revenue.
“Program innovations have gone beyond streamlined redemption at
the point-of-sale to not only address what CMOs value in a
marketing program, but what they need to be successful in customer
loyalty and engagement,” said Pete Krainik, founder of The CMO Club
(www.thecmoclub.com), a membership organization that brings
together more than 850 heads of marketing, and purveyor of the
BankAmeriDeals/CMO Club Poll.
The survey also found:
- Seventy-five percent of CMOs say
targeting and customer insights (purchase history, frequency,
location, spend, etc.) are the most crucial aspects to a marketing
program’s success.
- At the same time, 44 percent said that
the task of targeting and reaching the right consumers also ranked
as the most difficult aspects, while 23 percent said measurement
was among their greatest challenge.
- Respondents noted that card-linked
marketing helped meet other marketing objectives, including:
- Sixty-four percent said it drove
customer loyalty.
- Fifty-four percent said it generated
repeat sales.
- Forty-eight percent said it drove store
traffic.
- Forty-four percent said it helped with
brand recognition.
- Forty percent said it introduced new
customers.
- Nearly half (48 percent) believe
card-linked marketing is more effective or comparable to targeted
social media advertising, while 72 percent rank it higher or
comparable to store branded gift cards.
About the BankAmeriDeals/CMO Club PollThe BankAmeriDeals/CMO
Club poll on card-linked marketing was conducted by The CMO Club on
behalf of Bank of America in February 2014. The study was conducted
online and used a voluntary sample composed of more than 200 CMOs,
vice presidents and other lead executives practicing marketing.
Full results can be found at
www.thecmoclub.com/pg/newsletters/view/66396.
Bank of AmericaBank of America is one of the world's largest
financial institutions, serving individual consumers, small
businesses, middle-market businesses and large corporations with a
full range of banking, investing, asset management and other
financial and risk management products and services. The company
provides unmatched convenience in the United States, serving
approximately 49 million consumer and small business relationships
with approximately 5,100 retail banking offices and approximately
16,200 ATMs and award-winning online banking with 30 million active
users and more than 15 million mobile users. Bank of America is
among the world's leading wealth management companies and is a
global leader in corporate and investment banking and trading
across a broad range of asset classes, serving corporations,
governments, institutions and individuals around the world. Bank of
America offers industry-leading support to approximately 3 million
small business owners through a suite of innovative, easy-to-use
online products and services. The company serves clients through
operations in more than 40 countries. Bank of America Corporation
stock (NYSE: BAC) is listed on the New York Stock Exchange.
Visit the Bank of America newsroom for more Bank of America
news.
www.bankofamerica.com
Reporters May Contact:Tara Burke, Bank of America,
1.203.292.6590tara.a.burke@bankofamerica.com
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