In today's competitive retail environment, attracting and retaining customers has become increasingly challenging. While loyalty programs are designed to address this issue, not all of them are effective. In fact, about 77% of transaction-based loyalty models fail within the first two years. A significant reason for this failure is the misalignment between the incentives offered and what customers truly value or want.
Card-linked offers (CLOs) present a promising solution by creating more meaningful, personalized, and frictionless incentives. But what exactly are they and how do they work?
Card-linked offers are offers from retailers that connect rewards directly to a customer's primary credit card. When customers link their cards to a CLO program, their purchase data is securely tracked to identify when they meet the criteria for specific rewards. Once the reward criteria are met, it is automatically given out to customers without any additional steps required.
This seamless process allows customers to continue using their primary payment card—eliminating the need to carry multiple loyalty cards or remember to present them at checkout.
Ease of Implementation: Simple for retailers to set up without extensive infrastructure changes.
Frictionless Customer Experience: Quick onboarding with no need for physical or digital coupons.
Real-Time Rewards: Customers earn and can track rewards immediately after qualifying purchases.
Increased Engagement: Personalized incentives encourage active participation and loyalty.
Improved Acquisition and Retention: The seamless experience attracts new customers and keeps existing ones engaged.
Card-linked offers differ from traditional loyalty programs by simplifying the process: there's no extensive sign-up procedure, no new cards to carry, and rewards are applied in real-time without delays.
A traditional points program faces these key issues:
Perceived inaccessibility of rewards: The number of points required to redeem meaningful rewards may seem unattainable, discouraging customers from engaging with the program.
Operational costs: Points programs can be costly for businesses due to the need for staff training, additional time to enroll customers, and the financial liability of unredeemed points.
Cash rewards earned from an offer remain a significant driver of customer loyalty and engagement. Why? Because it gives what customers want. They can seamlessly earn cashback from their purchases, which is especially useful for budget-conscious customers.
This is how a card-linked offer can look: 5% cashback on purchases over $100 (maximum $50)
Cashback offers are a powerful tool for increasing customer loyalty. By providing immediate, tangible rewards, cashback incentives appeal to consumers' desire for value and can significantly influence purchasing decisions.
At Olive, we go beyond delivering value for retailers and brands—we create solutions that benefit merchant partners too. Our platform offers flexible configuration options, empowering businesses to effectively reward both new and returning customers.
We simplify the implementation of frictionless loyalty programs that align the goals of retailers, merchants, and customers. Whether it’s rounding features, cashback rewards, or personalized offers, Olive helps your loyalty program stand out and drive meaningful engagement.
Take the next step
Discover how Olive can transform your loyalty program. Schedule a demo today to see our platform in action and unlock the potential of card-linked offers for your business.