Insights and Reports

Strategic Cost Management: Leveraging Card-Linked Offers to Combat Rising Customer Acquisition Costs in the QSR Industry

Analyzing the Surge in Customer Acquisition Costs

Nearly Half of Consumers With Kids Would Switch to Merchants With Card-Linked Offers

Sixty-five percent of credit or debit card users prefer to shop with brands or merchants where they are members of loyalty or rewards programs.

<h4>Goals</h4>
<p class="font_8">With the online grocery sector continuing to grow as more consumers shift grocery spend online, leading retailers and grocers are responding with convenient pick-up and delivery services. As the online grocery space fills with competitive services all fighting for customers, acquiring and retaining new shoppers is paramount as the sector expands, especially as the pandemic further accelerates the adoption of online grocery shopping with consumers staying home.</p>
<h4>Strategy</h4>
<p class="font_8">Our card-linked offer (CLO) network partner executed a campaign targeting card-linked ads to new customer prospects. Leveraging purchase data of 45 million cardholders, they served card-linked ads to consumers who had not previously purchased groceries from this retailer including those who were buying groceries online through competitors. The card-linked ad featured a 10% cash back offer to incentivize consumers to buy groceries online for the first time and was published across their financial institution partners to reach consumers through their mobile and online banking experiences. The campaign was supported by a dedicated email marketing campaign to promote the online grocery service and 10% cash back offer at no additional cost.</p>
<h4>Results</h4>
<p class="font_8">The campaign led to the acquisition of over two-hundred thousand new online grocery shoppers, fueled by 119% lift in conversions. Amongst the new shoppers, 47% completed at least one additional online grocery order within 60 days of their first purchase. Following the campaign, this online grocery retailer gained 68% market share amongst new shoppers who had previously not used their service to buy groceries online.</p>
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<p class="font_8"><strong>Campaign Highlights</strong></p>
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<li><p class="font_8"><strong>119% incremental lift</strong></p></li>
<li><p class="font_8"><strong>$7.22x return on ad spend</strong></p></li>
<li><p class="font_8"><strong>68% market share shift</strong></p></li>
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Retailer scales its online grocery pick-up and delivery service through targeted card-linked campaign

Our CLO network partner helped one of the world’s largest retailers generate awareness and drive trial and adoption of their online grocery delivery and pick-up service. From limited market pilots to full national rollout, LuckyDiem’s custom ad solution is focused on shopper acquisition and retention.

What Are Card-Linked Offers? And Why Should Brands be Using Them?

Card-Linked Offers provide a frictionless purchase journey for the consumer and highly targeted, fraud-free marketing for brands. Merchants benefit from 100% attribution, best-in-class ROI and increased customer loyalty.

Measurement and Reach in the Age of Privacy

Ever since 2020, marketers and consumers have seen a huge shift towards consumer privacy. Privacy has taken center stage in performance marketing and iOS/mobile app marketing in particular — impacting attribution models, campaign optimization, monetization methods, remarketing, fraud, and more.

Revenge Spending is on the Rise

Is your Brand Capturing the Change in Consumer Spending?

<p class="font_8">LuckyDiem can provide the same potential reach as a commercial during the Big Game at no extra cost to the advertiser. LuckyDiem is a leading pay-for-performance, transaction-based digital advertising platform company. Our payment-linked offer platform is powered by direct integrations with Visa, MasterCard, American Express, and other financial institutions. With these integrations, LuckyDiem understands where, when, and how much consumers are spending at any given time and can hyper-target audiences based on an advertiser’s unique needs and KPI’s. LuckyDiem’s publisher marketplace consists of top banks, financial apps, and digital platforms reaching over 200M+ consumers with linked cards, representing over $500 billion in annual spending. </p>
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<p class="font_8">The new year is approaching and there have likely already been extensive conversations at most companies about your annual marketing budget. For many companies looking for substantial consumer reach, digital marketing will be a significant component of their budget; for a select few companies, creating primetime commercials may be considered. We explored what a campaign with LuckyDiem could deliver with the budget of a commercial during the Big Game. </p>
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<p class="font_8"><u>LuckyDiem flips the traditional marketing funnel</u> </p>
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<p class="font_8">LuckyDiem is performance-based, and this model allows us to guarantee ROAS upfront. Some of the most popular digital marketing channels, that can deliver millions of consumers, such as Google, Facebook, YouTube and other social platforms have different pricing models. They charge on a cost-per-thousand (CPM), cost-per-click (CPC) or a cost-per-action (CPA). Although these metrics can be tracked and targeted, there is no direct sales attribution for in-store purchases on these campaigns. </p>
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<p class="font_8">Another drawback of these popular digital channels is that many are priced through a bidding system, so volume and market competition play a substantial role in the price. However, in LuckyDiem’s model, there is never a concern of exponential price rises or getting priced out by competition. </p>
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<p class="font_8"><u>Scale, clicks and awareness for free</u></p>
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<p class="font_8">Getting back to the original statement – LuckyDiem can provide the same potential reach as a commercial during the Big Game, at no extra cost to the advertiser. 99.18 million people tuned in to watch the 2022 Super Bowl, between the Cincinnati Bengals and the Los Angeles Rams. That’s nearly 1/4th of the US population coming together to enjoy a game on their television, streaming device or smartphone. It comes as no surprise that such a viewed event carried a hefty advertising budget. The cost of a 30-second advertisement spot during the 2022 Super Bowl was $6.5 million. This doesn’t include the production cost and timeline to create a primetime commercial. With LuckyDiem, an advertiser can get a campaign up and running in as little as a week with minimal creative assets required. One thing that LuckyDiem has in common with the Super Bowl is the number of consumers they can both reach. LuckyDiem’s card-linked offer platform reaches 100M+ cardholders and growing year over year. LuckyDiem is now reaching as many people as the 2022 Super Bowl, but LuckyDiem’s model is performance-based, so there is no additional charge for exposure to these consumers. The only time an advertiser gets charged is when a consumer in our network makes a purchase at that participating advertiser, using their linked card. So, there is zero upfront cost and zero risk running a campaign with LuckyDiem. </p>
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<p class="font_8"><u>Precision targeting and measurement</u></p>
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<p class="font_8">At LuckyDiem, we believe it’s not just about having reach but the ability to target the right consumers, at the right time. Having reach but no targeting makes it more difficult to identify value. The Super Bowl and its viewership are very well studied. For example, in 2021, there were 39.5 million viewers aged 18-49. Beyond knowing the age of these consumers, advertisers don’t have very much insight into what interests or drives action among those consumers. At LuckyDiem, we support custom targeting but with more precision by using first-hand transaction data. LuckyDiem can target specific consumers based on their past purchase history. Advertisers can use this to their advantage by defining their own custom consumer segments. Once the segments are defined, the LuckyDiem platform can deliver unique offers for each segment- from new customers, lapsed customers, returning customers or competitive targeting. For example, a quick-service restaurant (QSR) client of LuckyDiem’s wants to reach consumers who have made 1+ purchases at a competitor but not with them over the last 12-months. LuckyDiem can create a custom offer for this target audience. Targeting is a differentiator for LuckyDiem. </p>
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<p class="font_8"><u>Marketing insight, reporting and measurement</u></p>
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<p class="font_8">TV advertising and many digital marketing channels are challenged with attribution. In contrast, LuckyDiem can provide advertisers marketing insights, real-time reporting and campaign measurement with direct attribution. LuckyDiem provides free campaign reports. Advertisers can take these insights to make actionable plans beyond card-linking, just one more perk of being a partner of LuckyDiem’s. Below are a few bullet points covering some of the advanced transaction reports LuckyDiem shares with its advertisers. </p>
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<li><p class="font_8">Test vs. control incremental lift analysis: LuckyDiem will use the measurement approach that quantifies incremental spend per redeemer by comparing spend per customer, test vs. control. The control group will be ~10% of the eligible population for each target segment </p></li>
<li><p class="font_8">Long-term value analysis: LuckyDiem will track cardholder spending after the first purchase to calculate total revenue driven by new user acquisition </p></li>
<li><p class="font_8">Share of wallet analysis: LuckyDiem will track spending of our users across top competitors for pre-campaign, while the campaign is live and post-campaign </p></li>
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<p class="font_8">Ready to get the reach of a commercial during the Big Game with a guaranteed return? LuckyDiem’s solution reaches 200M+ cardholders with no upfront costs, integration fees or up charges for targeting. In addition, LuckyDiem is 100% performance-based; advertisers only pay when the campaign drives verified transactions. This model allows LuckyDiem to give a guaranteed ROAS before the campaign even begins. </p>
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<p class="font_8">Are you ready to see what a LuckyDiem partnership could deliver to your company? Contact us today to design a custom campaign.</p>

Delivering Big Game Commercial Reach through Card-Linked Offers

Want to give your brand Big Game commercial reach without the cost?

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National Home Improvement Retailer Case Study

In order to reach new shoppers and drive revenue growth, we leveraged the power of coalition by cross-promoting the national home improvement retailer across one of our airline publishers.

National Footwear and Athletic Apparel Brand Case Study

We helped a national footwear and athletic apparel brand generate 71% in incremental revenue from their CLO campaign with a $3.46x net incremental ROI

CLO Tops Social Media

Card-linked Programs top list of most preferred marketing channels, surpassing social media marketing for the first time

National Lodging Incremental Lift Report

We helped a national lodging brand generate 131.2% incremental revenue lift from their CLO campaign