The popularity of Daily Deals sites has exploded in recent years with a plethora of providers vying for the attention of an increasingly price-sensitive consumer base. However, while Daily Deals are a highly effective means of increasing awareness and driving
consumers to a particular retailer, the current offerings lack the ability to target the offer to the desired consumer segments, thus limiting the medium to long term effectiveness yielded by the promotion.
It’s in optimising this long-term effectiveness where issuing banks can really bring value to the table. A recent
Aite Group report found that consumers would be willing to receive daily deals offers from banks and indicated that the financial institutions would be well placed to provide
these relevant offers. Issuers have access to the detailed purchase behaviour of their cardholders, with the ability to understand not only what their customers are interested in, but also where they shop, how often and how much they spend.
As consumers become increasingly desensitized to generic and often irrelevant digital marketing, one way of retaining engagement is to ensure that the offers communicated are not only interesting but relevant to each individual consumer, this is essential
in reducing the current dependency on motivated consumers.
It is not only the consumer who benefits from a personalised and relevant experience. Retailers can target offers to specific and desirable consumer segments, ensuring that the offer is delivered to the right consumers. This is in stark contrast to the current
environment where the majority of offers are often snapped up by price-sensitive ‘cherry pickers’, who are unlikely to ever become valuable long-term customers.
Just as Amazon revolutionized the e-Commerce landscape by offering a personalised and relevant experience to each individual consumer, issuing banks are in a unique position to revolutionise the Daily Deal landscape with a similar personalised and relevant
experience for the consumer. They must step up and make use of this valuable data to avoid missing a trick.