Retail is Not Dead, But Small Businesses Need Help

If you believe the headlines, you would think that most sales now happen online — but that is just not true. 94%, or $4.9 trillion, of all retail sales for 2018 happened at brick-and-mortar stores, eclipsing total online sales (eCommerce) at just $515 billion as stated by eMarketer.com.

Path to Purchase is Changing

Even though the vast majority of sales still happen in-store, the path to purchase is dramatically shifting — so retailers have to rethink how they attract and retain customers. 88% of shoppers research products online before purchasing in-store or online.

Consumers now go online to research a restaurant, store, or product in order to make an educated decision on where to eat or what to buy in-store.

Most retailers recognize the importance of digital marketing in driving consumers who are online into their brick-and-mortar store, but the majority of small businesses find it difficult to compete in this environment where they don't have the expertise, time, or advertising budget.

Introducing Card-Linked Offers

Fortunately, Card-Linked Offer (CLO) technology is leveling the playing field for all merchants. CLO marketing is the fastest growing segment of digital marketing, with a majority of large companies expecting to double their CLO budgets, and the number of consumer transactions doubling year over year. Despite this rapid growth, most of the 25 million small businesses in the US have never heard of CLO marketing.

Card-Linked Offers (CLOs) are offers (cash back or discounts) that consumers automatically receive just by linking their debit or credit cards to an app, website, or loyalty program. Once a consumer links her credit card, every time she makes a purchase, she will automatically receive cash back or a discount at participating businesses — no physical coupon or mobile device display required.

Online to Offline Attribution Solved

Card-Linked Offers are unique in that they seamlessly connect online advertising efforts with in-store purchases. With traditional digital marketing campaigns, merchants pay for impressions or clicks — and they cannot track how many in-store visits and sales were driven by their online ads.

With CLOs, merchants can now see the direct impact of their online advertising budget because every transaction made can be tied back to the consumer through the linked credit card. There is no upfront cost — merchants only pay a small fee each time someone makes a purchase.

Increase Sales & Customer Retention

CLOs have been proven to increase the number of in-store visits and customer retention:

• 61% of consumers say discounts and coupons increase their loyalty to a brand
• 77% of consumers say discounts influence where they shop
• Cash back offers increase the size of purchase by 30–40%

The Future is Bright

CLOs help maintain a vibrant and profitable local merchant ecosystem, because small businesses now have the means to advertise and retain customers like large retailers — without taking on any risk.

Originally posted on StreetFight Mag, October 1st, 2019.