New Data: 93% of Card-Linked Offer Users Come Back for More

Card-linked offers, which provide special savings or rewards attached to a merchant or product, are popular: Roughly 2 in 5 cardholders consistently use them. PYMNTS Intelligence’s research shows how attractive current offers are to users: 93% plan on maintaining or increasing their use in the next year.66%: Share of consumers who started using card-linked offers after seeing one to four offers

Getting cardholders to use a first offer is vital to retaining them for the future. Increasing consumers’ familiarity with card-linked offers is an essential first step toward higher consumer engagement.

These are just some of the findings detailed in “Card-Linked Offer Growth Hinges on First-Time Users,” a PYMNTS Intelligence and Banyan collaboration. This report examines the future growth dynamics of card-linked offers. It draws on insights from a survey of 2,108 respondents conducted from Feb. 2 to Feb. 16 that explored how and why they started using these offers.

Other key findings in the report include:

41%: Portion of consumers who were highly familiar with card-linked offers before using their first oneMore than one-quarter of non-users expect to start using card-linked offers in the next year.

Interest in these offers exists even among those who have not used them: 28% of non-users plan to start using these offers in the next year. In fact, younger consumers are the most interested in card-linked offers, peaking at 58% for Generation Z. The report details which consumers are most interested in engaging with these programs.

Attracting new users is a three-step process: introduce, educate, hook.

Familiarity and exposure are key factors influencing current non-users to use these offers. PYMNTS Intelligence finds that 23% of non-users say familiarity with these programs could reel them in. Providers should focus on visibility, as 34% of non-users say they have never heard of them. Read the report to learn more about the card-linked offer attraction formula.59%: Share of Gen Z card-linked offer users planning to use them more

Nearly half of cardholders first heard about card-linked offers from their bank or a familiar merchant.

When asked how they learned about these offers, 44% of consumers said it was their primary bank or a merchant they patronized. An additional 23% say they got a notification from an unfamiliar bank or merchant. Email has a surprising role to play. Consumers were 55% more likely to say they learned about these offers from email than mobile app notifications.

To grow usage, providers need to engage consumers multiple times. Just 22% of consumers say they used the first card-linked offer they saw. Before providers can hook consumers, they need to introduce more of them to these programs and educate them about their benefits. Download the report to learn about card-linked offers and how providers can unlock the next wave of growth.