Recently published research from Timetric, "2020 Foresight Report: Merchant-Funded Rewards - Challenges and Opportunities for Retail Banks", is now available at Fast Market Research
Boston, MA -- (SBWIRE) -- 07/03/2013 -- With the emergence of payment cards and their increasing adoption by consumers and acceptance by merchants, banks and other cards issuers have been making significant efforts to make consumers use their cards over those of their competitors. In line with this, banks have been at the forefront in issuing cards with benefits and features offered through loyalty programs. These programs allow banks to distinguish their products from the basic services offered by competitors by offering attractive deals in a variety of product categories. However, it has become apparent that bank-funded reward and loyalty programs have lost value and impact, from both the banks' and consumers' points of view. Banks and card issuers have introduced similar loyalty programs in the recent past, which have become mutually almost indistinguishable. This has compelled banks to carry out other expensive promotional initiatives to set themselves apart. Banks and other card issuers have also realized the benefits of merchant-funded loyalty programs and consider these programs as replacements for traditional loyalty programs.
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- The business model of merchant-funded products has changed as the roles of the stakeholders associated with merchant banking have altered: the risk associated with expenses has shifted to merchants and is not borne by card issuers or program managers.
- In countries such as the US, Canada, Brazil, Russia and some other European countries, adoption levels of programs are high among leading banks such as Bank of America, Citibank, Chase, Royal Bank of Canada, Sberbank, Barclays, Standard Charted and HSBC.
- The implementation of an effective marketing campaign is key to the success of any loyalty program.
- Different promotion and advertising channels can be deployed to access a larger consumer base; advertisements on the company's website, email and newsletters are highly cost-effective modes of advertising a loyalty program.
- This report provides a comprehensive analysis of various merchant-funded loyalty program business models
- It provides insight into the merchant-funded loyalty program value chain and the role of the service provider
- It details merchant-funded reward program strategies adopted by key market players
- It profiles major players active in the value chain of merchant-funded loyalty programs
Reasons to Get This Report
- Gain insights into creating and improving a merchant-funded rewards model
- Gain an understanding of industry best practice
- Learn about the most effective business models
- Get advice on improving merchant-funded rewards programs
- Understand the value chain of merchant-funded loyalty programs
Companies Mentioned in this Report: Smart Chip Technologies, Fifth Third Bank, Bank of Montreal, Dunkin' Donuts, Exxon Mobil, Affinity Solutions, FreeMonee Network Inc., Truaxis Inc., Cardlytics, Welcome Real-Time, Edo Interactive, Cartera Commerce, Inc.
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