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Banks are sharing buying habits with retailers to get their customers to spend more money
| Guest post by: Mark Johnson |
Article Overview: Tracking purchases allows banks and issuers to deliver more tailored transactional marketing offers
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Free Download - Customer retention, engagement remain top challenges for 2012 By Mark Johnson |
Banks are sharing buying habits with retailers to get their customers to spend more money
Each time you pull out plastic to
pay for something, your bank is watching, analyzing and calculating every move
you make.
When you take your debit or
credit card and use it at the point of sale, banks can follow where you shop,
how often you shop, and what you've purchased. Tracking your usage allows banks
and issuers to amalgamate all this information, cross reference it with what
they know about your income, lifestyle, and life stage, and deliver more
tailored transactional marketing offers to you.
Banks, however, are very careful
with your information ---
and the new ads have been a hit with consumers. Like
most consumers I'm concerned about my privacy and as long as I have a way to
opt out or opt in, I’m comfortable. The Federal Trade Commission is proposing a
new “do not track” program which would allow consumers to "opt out”
completely, and federal lawmakers are considering a new law to limit how banks
can use your information.
What does this mean from a
marketing perspective? I believe this is an emerging area.
Banks have a ton of transactional insight that they own, and with
changes such as the Bank Card Act and the Durbin amendment, they are looking
for ways to monetize this data. It is very similar to the manner in which
grocery stores in the late 90’s and drug stores early and mid 00’s began to
realize that they have a treasure trove of actionable data that they can
monetize.
Credit cards have consumers’
shopping behavior across industries --- information that can give insight to retailers
such as Wal-Mart or Home Depot. If modeled correctly through statistical analysis,
this insight is invaluable. Yet the key is running the correct models.
The interesting piece is the
huge interest in this arena. it is almost (and I am sure will grow to) the
interest in mobile, yet I think the uptake will be quicker. This is going to be
a very interesting space. It is the catalina model with no clear leader nor security
issues (Cardlytics claims that no information leaves the hosting bank), yet
there are SO many other groups that could do this. Amex already does it; so
does Visa. So if these providers
do not have the card portfolio, the merchants and CPGs need a good sales
approach and a top notch analytics capacity.
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Why Customer Relationship Management (CRM)?
Retail Security
Competing with the Retail Giants
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Creating Successful Habits
Top 3 Reasons Why Banks will Close a Small Business Credit Line
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Customer Loyalty
Create New Success Habits!
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Leveraging Retail Technology
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Home Based Business--Bank Loans To Grow
Pricing strategies
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About the Author: Mark Johnson RSS for Mark's articles - Visit Mark's website Mark Johnson is President and CEO of Loyalty 360 - The Loyalty Marketer’s Association (www.loyalty360.org). Loyalty 360 is the only organization that addresses the full spectrum of both customer and employee loyalty issues. An unbiased, market driven clearinghouse and think-tank for loyalty and engagement opportunities, insights, and responses, Loyalty 360 is the source business leaders trust for industry metrics, market driven research, actionable case studies, and networking opportunities. Prior to founding Loyalty 360, Johnson designed and administered loyalty, CRM and data-driven marketing communications for industry leaders such as Fifth Third Bank, Stored Value Systems and Size Technologies. A sought-after speaker and writer, Johnson is frequently called upon by media worldwide to share his expert insights into customer and employee loyalty issues. Johnson can be reached at markjohnson@loyalty360.org Click here to visit Mark's website   What Makes Neiman Marcus InCircle Work Want Loyal Customers Make it Easy for Them to Get their Problems Solved Whats the bottom line impact of your employee volunteerism How the Rapid Rise of Social Media Social CRM Impacts Customer Loyalty By going unplugged for 24 hours college students teach marketers valuable lessons |
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