In this post, Jared Anderson, Head of Partnership at Olive, reflects on his time at Money20/20 this past October, and discusses his main takeaways on understanding, shaping and aiding consumer behavior.
Last October, like many others in fintech and engagement, I arrived in Las Vegas to attend Money20/20. From the moment of arrival to the day of departure, the experience was a whirlwind of conversations, meetings and insights gained. Now, a month later, I’ve finally had time to reflect on this year’s conference, and my conclusions strengthen my belief in our work at Olive.
Data as a means to an end
In payments, the prevailing trend has been an unrelenting pursuit of data. Data undoubtedly offers valuable insights, but it's easy to lose sight of the ultimate goal – shaping specific behaviors amongst customers, members, donors, employees, and beyond. A company can have all the data it wants, but what comes after that? How can you use data to share interactions with consumers? What business decisions or operations can that data fuel?
At Olive, we know that real power lies in outcomes, the tangible and intentional results we aspire to achieve by harnessing spending to create behaviors that matter.
In the B2B landscape, the emphasis has sharpened on crafting outcomes that are not just relevant but vital to businesses. Consider even the common idea of "cashback" - beyond just the monetary incentive, the true objective is engagement. Companies invest in cashback programs because of the massive opportunity to engage their customers and members. In the same vein, every transaction should be seen as a potential point of engagement and an opportunity to influence behavior positively.
Rounding, when every transaction gets rounded up and the difference put towards a goal like saving or donating, may seem simple at first glance. But it becomes exponentially more powerful when attached to something meaningful. When every transaction is tied to a goal or cause that resonates with the payer, it transforms a mere financial transaction into a point of emotional connection.
Bringing meaning to transactions
At Olive, we specialize in pairing engagement with transactions. The impact of this approach is substantial. We attach customer cards to goals the customer him/herself self-identifies. This personalization is key in influencing spending behaviors. Since Olive-powered programs are directly linked to personalized goals, they have demonstrated remarkable results.
We found that members not only increased their average transaction amount from $24 to $30, but a staggering 94% of cards remained enrolled, a program stickiness rate unseen elsewhere.
Contrast this with traditional points-based systems where the members either don’t understand what the points are going towards, or worse, may not even care. Our strategy goes beyond accumulation; it aligns spending with personal aspirations, making each transaction purposeful.
Leveraging the right instruments
In the pursuit of meaningful outcomes, we leverage card-linked services, rounding, and matching SKU offers. These aren't just transactional tools; they are instruments designed to create a lasting impact on behavior, both at an individual and organizational level.
Moreover, data can be limited. People are often resistant to changing their primary card, and understandably so – they seek convenience and minimal friction. Hence, our focus is on creating solutions that seamlessly integrate into their existing habits, minimizing disruptions while maximizing impact.
The power of personal goals cannot be overstated. By aligning spending with individual aspirations, we not only enhance engagement but also foster a sense of purpose in every financial transaction.
Further, our commitment extends beyond individual goals. We are actively exploring ways to create B2B impact. By understanding the unique needs and objectives of businesses, we aim to tailor our programs to drive outcomes that matter in the corporate landscape.
Looking ahead
As we look to 2024 and beyond, data will change. Audience targeting based on cookies and ads will shift dramatically as new rules come into play. Google has already announced that it will phase out support for third-party cookies in Chrome, disabling them for 1% of users in Q1 2024 before broadly phasing it out for all Chrome users by Q3 2024.
As we navigate this transformative period, Olive will continue to champion personalized, purpose-driven programs that not only adapt to change but thrive in it.
Join us on this journey where every transaction remains a powerful catalyst for positive change, transcending the evolving nuances of the data landscape.
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