Data insights from Valuedynamx between Black Friday and Cyber Monday should come as a signal for brands, retailers, and financial institutions to maximize the impact of their customer engagement programs in preparation for peak holiday shopping season and in time for January sales. With the data showing sizeable year-over-year increases in the number of consumers using customer engagement programs to buy from Food & Drink, Travel, and Luxury categories, it is clear shopper behavior is changing rapidly; people are now eager to eat out again, are booking travel further in advance, and are looking to treat themselves. Using customer engagement programs to splurge through Black Friday deals ensures they optimize their spending at this typically expensive time of year.
Card-linked offers—which allow consumers to register debit or credit cards for offers and rewards that are automatically received once the customer has made a purchase—were especially prevalent this year, with more programs making them available for customers. Valuedynamx saw an increase in offer activation and redemption in categories including Food & Drink, Clothing, Subscriptions and Travel.
“As the cost-of-living crisis hit homes nationwide, we expected to see people taking full advantage of Black Friday deals for their holiday purchases, and this trend is sure to continue throughout the rest of the holiday period and well into January. That’s why we’re urging brands to act now and get their own customer engagement programs in check to attract more customers during this and other peak seasonal times. People are clearly shopping via rewards programs--and it makes sense for them to use their cards or choose specific programs that will earn them cashback, points and other rewards while doing so,” said James Berry, Managing Director, Commercial at Valuedynamx.
According to The Loyalty Report 2021, the vast majority of people (85%) report they tend to increase how much they spend if it maximizes the benefits they’ll receive from a rewards program. Customer engagement initiatives are proving to be beneficial for financial institutions and their customers alike; in addition to providing added value to customers, these programs create an invested, engaged base of customers who are more likely to keep their favorite bank’s card at the top of their wallet—using it again and again over competitor cards.
Engagement programs have also proven a smart way for financial institutions to form a bond with their customers. Campaign Monitor reports more emails are sent on Black Friday than any other day of the year, and securing consumer attention in this timeframe can be extremely difficult. But having a program and rapport in place makes it more likely people will pay attention to correspondence from banks they are already engaged with even beyond the holiday season. That relationship can prove invaluable when consumers are more inundated with messages than ever.
“Customer engagement programs are a strategic way for banks to show they not only understand their customers, but also want to help them get the most for their money,” added Berry. “At this time of year, forging and leveraging that relationship is extremely important; it means one card will be kept top of wallet, or a communication from their bank of choice will be opened instead of another. With consumers looking to spend less, competition for smaller budgets will be even more fierce, and engagement programs give banks the differentiator they really need right now.”
