BRIDGETON, Mo.-Members are getting cash-back offers from merchants when they log in to online banking at Vantage CU here-offers that are targeted based on the member's history of debit card purchases.
"The debit card and online channel are critical relationships with our members, and this debit rewards program adds relevance and value to improve the utilization of those relationships," suggested Eric Acree, EVP at the $670-million CU.
Online members began seeing the cash-back coupons in their checking account history last week, part of the program delivered to Vantage by Atlanta-based Cardlytics. "The program is unique in our marketplace, so it's going to help provide that level of differentiation that all of us seek," Acree added. "And certainly there will be an element of debit card revenue that we benefit from."
Cardlytics research would suggest that the cash-back program creates a "high-level of engagement," said Rod Witmond, SVP-marketing, Cardlytics. Typically, nearly 60% of users click on an offer. About 20% of clicked offers are activated, and 20% of activations are redeemed.
The Vantage rewards program should draw even greater engagement because VCU members use debit cards more often than the average consumer, Acree said.
At the Internet banking "rewards zone," members can view the running total of cash credited back to their checking account from redeemed rewards offers, he said.
"At any point in time, the member can see the actual value they've realized from this program. Vantage is trying to quantify the value of membership, and this program helps us do that."
When members view account histories online, a merchant's offer appears below the corresponding transaction. Members click to activate the offer and then use their debit card at the merchant to automatically redeem the offer-no coupon printing necessary.
Rich & Relevant
The rewards program is particularly "rich and relevant" as offers are based on the member's shopping habits, Witmond continued. The more than 50 national merchants and 800 local merchants can choose how to segment member transaction history: merchants can either target the types of debit spending the member does, such as fast food or clothing, or target transactions completed at their business. Merchants can also consider the number of times the member shopped with them and the volume of each transaction.
Merchants pay Cardlytics only when a member redeems an offer. That means merchants can put more of their advertising dollars into the reward instead of into the advertising chain, Witmond said.
Vantage-not the merchant-controls the program, including the appropriateness of the spending categories and merchants, and the member purchase history. "All transaction data is retained behind our firewall," Acree said. Merchant campaigns are pushed nightly to Vantage.
Vantage wanted members to respond well to the new merchant-based program, so the launch was preceded by weeks of education.
"We rarely put more than two or three offers in the transaction history," so as not to overwhelm members, Witmond added.
Members can click to remove themselves from the program-but, typically, less than 2% of online bankers opt-out, he said.
Vantage plans to integrate Cardlytics into a mobile banking app when the kit is released later this year and would like to extend the program to credit and prepaid cards.
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Vantage CUwww.vcu.comCardlyticswww.cardlytics.com Find related stories at www.cujournal.com by searching "Why RBFCU Is Investing In Rewards" and "Transactions Triple After Rewards Are Offered"
