1. Unlocking the value of transaction data and digital banking
Launching Card-Linked Marketing in Europe
Mobey Forum
7 May 2014

2. Retail marketing budgets exceed Interchange and are growing
Direct costs of sale for UK Retailers
Sales Promotions & Loyalty Schemes have budgets 61% larger than interchange
Retailer sales cost type
Source: Ernst & Young analysis 2011
© 2014 Cardlytics. Proprietary and Confidential.

3. Banks have an advantage of rich purchase data and high reach channels
Digital
Users
Low
Reach
millions
millions
# Purchase Transactions / Year
billions
Limited Purchase Data
High Purchase Data
© 2014 Cardlytics. Proprietary and Confidential.

4. But competition for this data is accelerating
High
Reach
Wall Street Jounal – April 2014
Digital
Users
Low
Reach
millions
millions
# Purchase Transactions / Year
billions
Limited Purchase Data
High Purchase Data
© 2014 Cardlytics. Proprietary and Confidential.

5. But competition for this data is accelerating
High
Reach
Forbes February 2014
Digital
Users
Low
Reach
millions
millions
# Purchase Transactions / Year
billions
Limited Purchase Data
High Purchase Data
© 2014 Cardlytics. Proprietary and Confidential.

6. But competition for this data is accelerating
High
Reach
Digital
Users
Low
Reach
millions
millions
# Purchase Transactions / Year
billions
Limited Purchase Data
High Purchase Data
© 2014 Cardlytics. Proprietary and Confidential.

7. But competition for this data is accelerating
High
Reach
Digital
Users
Low
Reach
millions
millions
# Purchase Transactions / Year
billions
Limited Purchase Data
High Purchase Data
© 2014 Cardlytics. Proprietary and Confidential.

8. Purchase data and digital channels at scale are the “holy grail”
1B+
High
Reach
Digital
Users
Low
Reach
millions
millions
# Purchase Transactions / Year
billions
Limited Purchase Data
High Purchase Data
© 2014 Cardlytics. Proprietary and Confidential.

9. Banks have a head start as the trusted custodian for transaction data
Source: Alix Partners, Q Research. Top Two box rating minus bottom box rating
© 2014 Cardlytics. Proprietary and Confidential.

10. And exclusive control over ‘owned’ digital channels
Offer Activations & Redemptions based on engagement channel
Online Driven Behavior
Mobile Driven Behavior
Source: Cardlytics Data
© 2014 Cardlytics. Proprietary and Confidential.

11. Case Study Lloyds Banking Group launch of Card-Linked Marketing 2013
© 2014 Cardlytics. Proprietary and Confidential.

12. Considerations before entering the UK
Financial Institutions
Customers
Retailers, Service Providers, & Brands
Approach to digital marketing
Existing investments in loyalty schemes and voucher programmes
Programme transferability from US to UK
Scale & impact of implementation
Perception of privacy – hype vs. reality
Creating awareness of the programme and fitting into consumers behaviour
© 2014 Cardlytics. Proprietary and Confidential.

13. Major milestones Decision (12-18 months prior to launch)
Consumer Research
Technical assessments
Structure business case
Partner options & strategy
Design (6-12 months prior to launch)
Technical designs
Local modifications
Early stage merchant sales “its coming”
Manage expectations for senior bank executives
Launch (0-6 months)
Marketing plans agreed & start pre-launch
Employee pilot (1+ settlement cycle) Accelerate merchant sales with “its launching” message
© 2014 Cardlytics. Proprietary and Confidential.

14. Product Design is always challenging in banking
TYPCIAL BANK APP
Stuffthathappens by Eric Burke
Source: stuffthathappens by Eric Burke
© 2014 Cardlytics. Proprietary and Confidential.

15. However a simple decision process and willingness to listen led to ‘good UI’
© 2014 Cardlytics. Proprietary and Confidential.

16. Above the line marketing drove consumer (and retailer) awareness
© 2014 Cardlytics. Proprietary and Confidential.

17. Followed with 1:1 marketing using digital re-targeting, e-mail and direct mail
© 2014Cardlytics. Proprietary and Confidential.

18. And of course bank owned channels with interstitials on log in
© 2014Cardlytics. Proprietary and Confidential.

19. Resulting in 3 launches in 2013
Largest Retail Bank in UK
Halifax: September
Lloyds Bank: October
Bank of Scotland: December
10 Million unique online / mobile users
Over 1 billion annual logins
3+ million unique mobile users
£100 Billion in card spend
Sources: Lloyds Banking Group Press Releases,, Nilson
© 2014 Cardlytics. Proprietary and Confidential.

20. What Happened Customer Rewards Merchant Growth Customer Engagement
© 2014 Cardlytics. Proprietary and Confidential.

21. Customers earned £1 million in rewards at Halifax in 90 days
© 2014 Cardlytics. Proprietary and Confidential.

22. 18 original launch partners has more than doubled and is accelerating
© 2014 Cardlytics. Proprietary and Confidential.

23. New partners and expanding budgets are growing available rewards
Monthly Budget per Customer by category
Source: Indexed to £1 at launch
© 2014 Cardlytics. Proprietary and Confidential.

24. Ultimately leading to an increase in key retail bank metrics
Payment Card Usage
Increased online use
Decreased attrition
New customers for bank
Net gain of 144,000 new customers in first 3 months of programme national rollout
4% increase in card usage after first redemption
19% decrease in attrition for debit portfolios
16% increase in online & mobile banking logins after first redemption
Source: Cardlytics US data, Marketing Week 14 February 2014
© 2014Cardlytics. Proprietary and Confidential.

25. Lessons Learned Press Patience Teams
© 2014 Cardlytics. Proprietary and Confidential.

26. Be ready for some negative coverage and get it out of the way early
Article ran in the Daily Mail – January 2013
“Major high street bank plans to start hitting customers with targeted offers”
Formal PR and public launch in August 2013
Daily Mail coverage: none
This was an “old story”
© 2014 Cardlytics. Proprietary and Confidential.

27. Be patient, merchant and consumer adoption takes 18-24 months to mature
Fast followers
Early adopter, once “live”
Finite number of early adopters
© 2014 Cardlytics. Proprietary and Confidential.

28. Invest more in the BAU teams & process
Team Transition
Marketing Services
Culture
Nimble, tech company versus large retail bank. Remember the logic of outsourcing
Marketing Services is very different from Retail Banking
Bank implementation team transitioned to BAU who didn’t have history of decisions and process to get to launch
© 2014 Cardlytics. Proprietary and Confidential.

29. Questions Jason Brooks +44 7785.619.893 jbrooks@cardlytics.com
© 2014 Cardlytics. Proprietary and Confidential.