As I mentioned in the last post, banks are back in business and are chasing consumers with offers and rewards on their credit & debit cards. This is a good news for consumers but question is how many consumers actually avail these offers? From what we have learned from banks very few cardholders use such offers because most of the time they are not even aware of offers on their cards! For banks this signals bad news because they employ a sales force to get good deals and a great marketing team to market their reward program left, right and center, but even after doing all this if consumers don’t avail of reward offers then it certainly is a BAD NEWS.
And let me tell you for most banks’ reward programs this is the reality, so it is obvious there exist a problem in the way reward system work. If you ask us then problem is neither with sales team nor in marketing. Thing is consumers quickly forget offers on their cards after viewing them on banks’ websites, therefore they don’t avail of offers when they are ready to spend their hard earned money. As a consumer I faced the same issue in the past — even after viewing offers on a bank’s website I just couldn’t recollect them when needed. Had there been a system back then which I could use at the last minute (i.e. just before visiting a place or just before spending) to view offers on my card then I would have definitely availed offers on my credit card.
Now some people may say you can check banks’ websites on mobile phone when you are out and look for discounts, but being honest it is not the most efficient way. Firstly, most banks have completely unfriendly websites which even a rocket scientist will find it difficult to navigate. Second, there is no way to get a nice deal around our location. On banks’ website all you get is a list of places where you can avail discounts, arranged in random order or alphabetically, so there is absolutely no way of knowing a place around you which is offering discount on your card unless you start viewing all offers with detailed information like merchant address, phone number, etc. Now answer one simple question, who in the world has so much time?Certainly not me and I can bet my month’s salary that most of you too find it cumbersome to navigate banks’ website looking for deals on cards.
The most efficient way according to me is an app on which you can see offers applicable on your cards at the last minute. The main requirement for such an app is a nice and easy to navigate UI, and location feature. Another important feature is being bank agnostic, i.e. all banks’ cards should be supported. Simply put, the app should have all deals provided by all banks and filtered according to users’ cards and location.
With redanar we are trying to solve the problem which exist in reward programs — informing consumers about offers on their cards when they need them the most. All the app ask for is type of cards you have and based on your location the app filters deals. It is an easy to use free app which helps you save money on your everyday shopping, dining, travel, etc. For people who use their cards on a daily basis and occasional users it is a must have app because they can stay informed of nearby offers available on their cards and avail them, thus saving money. Just give it a thought, you have downloaded redanar and added your credit/debit card (without entering the number because we don’t ask for it) and see a nice dining deal which you can avail of tonight or a great travel offer using which you can save money on your next business trip. Sounds good? It is and for proof we have a hefty user base who is using redanar day in, day out and saving money by availing offers on their cards.
As far as banks are concerned the app is good for them as well because more people can stay informed of offers and avail them thus increasing transaction and redemption rates. In addition, cost of putting offers and marketing on redanar is far lower than traditional mediums. Now the best part, with traditional methods (like mailers, print, SMS, web, etc.) the conversion rate is hardly 1%, but we believe with our system conversion rate can be much higher because we inform consumers of offers exactly when they need them. Moving further, if you integrate banks’ systems with our system then you can track which user viewed which offers and whether he/she availed of any offer or not — this can help track effectiveness of the campaign like none other. Additionally you can analyse user preferences, cards they have, offers they have availed in the past, their location, etc. and provide deals accordingly. In simple language, you can personalize reward program like it has never been done in the past.
If you agree this is a much better way to handle reward program then we have another ace up our sleeves — the notification feature. What notification feature does is notify users about offers in their neighborhood. For example, if you have XYZ card and there’s an amazing offer at a nearby store and applicable on your card, we’ll send you a notification that there is this amazing deal in your neighborhood which you can avail of. In marketers lingo you call it push feature.
This is pretty powerful feature for banks as well as big and small retail outlets. Banks can notify their cardholders about reward points they can accumulate by shopping at a certain place in their neighborhood and offers in their surrounding to increase transaction. As for merchants they can also increase their transaction by sending notifications to their cardholders and loyal customers when they are in vicinity of their shops. For example, if a particular Pantaloons cardholder/loyal user has not shopped with them in a while and if they are in vicinity of an outlet, Pantaloons can send a notification saying he/she will get a special 15% discount on next purchase. What this will do is entice consumer to shop (increasing transaction) and increase respect and loyalty towards the brand.
We truly believe we have built a wonderful mobile marketing platform which will help increase offer redemption rate and overall transaction for banks as well as merchants.
Would love to get your thoughts on problems in marketing offers on cards and reward programs, and our prop, so please share your thoughts with us through comments.