Card Linked Offers

(noun)

Card Linked Offers connect offers or discounts directly to a consumer's credit card or debit card, which can then be redeemed at the point of sale.

Related Terms

Examples of Card Linked Offers in the following topics:

  • Loyalty Marketing

    • The early part of 2010 saw the rise of Card Linked Offers (CLOs) as a new loyalty marketing technique for brands, retailers and financial institutions, stemming from a rise in popularity of both mobile payment and coupons.
    • CLOs connect offers or discounts directly to a consumer's credit card or debit card, which can then be redeemed at the point of sale.
    • When consumers see relevant CLO-enabled advertisements and product offers while browsing online, using a mobile device, watching TV, reading a newspaper or magazine or listening to the radio they can click, text or scan a QR code to link the CLO-enabled ad directly to their credit/debit card.
    • Offers are typically based upon consumer preferences and previous purchase history.
    • Others, like MazeCard, have offered consolidated loyalty marketing schemes in other continents.

  • Services as Solutions

    • The use of technological advances in service and product offerings can be very beneficial to a company.
    • For example, Visa has embedded security chips, such as the one displayed in this picture, into their Visa credit cards.
    • This chip will ensure the card cannot be duplicated and provides extra security measures to consumers who use the credit cards and reduces the threat of identity theft.
    • It is important to listen and provide a fair offer for services that genuinely meet a customer's need.
    • Years ago, the Red Hat Network offered a valuable service for those who purchased a software subscription.

  • Sustainable Competitive Advantage

    • A loyalty program is like a "Target card. " Now, when the customer uses the card as a credit card, Target can track all of their transactions and store it in their data warehouse, which keeps track of the customer's needs and wants outside of Target.
    • This will entice Target to offer products that they do not have in stock.
    • Target tracks all sales done on their cards.
    • So, Target can track customers who use their card at other retailers and compete by providing that merchandise as well.

  • Online Sales Promotion

    • For software free trials, users often have to give payment or credit card information and other demographics before the download is allowed and the software is functional.
    • The objective is to get the visitor to take action by contacting a sales representative and ultimately buying the offered product.
    • Affiliate programs transform site visitors to business partners by offering rewards for referral business.
    • Online offers and giveaways are simple and enable marketers to cultivate and gather valuable sales and demographic information.
    • Software companies do this all the time when they offer free downloads, stripped down versions of the software, or trial periods.

  • Direct Marketing

    • Direct marketing has cleared the way for a number of competitors to enter markets on a global level and has increased product offerings to fill niche markets.
    • Toll-free 1-800 numbers, loyalty marketing programs, magazine subscription cards, mail order catalogues, and credit card rewards programs laid the foundation for direct marketing's success.

  • Target Market Characteristics

    • There are also discount cards available that offer discounts by allowing shoppers to collect points each time they shop at their store.

  • Cash Flow

    • Another example is a gas station that gives discounts on gas prices to costumers who don't pay with credit cards.
    • A quick way to generate cash flow is to offer seasonal discounts.

  • Nonprice Competition

    • Common practices in the competition between firms (such as supermarkets and other stores) include the following: traditional advertising and marketing, store loyalty cards, banking and other services (including travel insurance), in-store chemists and post offices, home delivery systems, discounted petrol at hypermarkets, extension of opening hours (24 hour shopping), innovative use of technology for shoppers including self-scanning, and internet shopping services.
    • The firm can also distinguish its product offering through quality of service, extensive distribution, customer focus, or any other sustainable competitive advantage other than price.

  • Rebates

    • Rebates are offered by either the retailer or the manufacturer of the chosen product.
    • Some rebate programs offer several payout options to consumers, including a paper check, a prepaid card that can be spent immediately without a trip to the bank or even PayPal payout.
    • However rebates are sometimes given in the form of "cashback offers" for mobile phone contracts or other high value retail items sold alongside a credit agreement.
    • New companies that want to break into a market can offer substantial rebate savings on their new product as a means of capturing a customer's attention.
    • Rebates may seem to offer customers lower pricing.

  • Avoiding Potential Fraud

    • Emails containing links to websites infected with malware, also known as email spoofing
    • In a call tag scam, criminals use stolen credit card and tracking information to purchase goods online for shipment to the legitimate cardholder.