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The future: Digital loyalty: the new currency

Gone are the days when a customer would stay with the same bank for 20-plus years, taking out mortgages, loans and making deposits and investments. Unfortunately, with today’s commoditisation of bank products and services,customers are quick to move.

Smart Engine

Loyalty programmes are one of the few areas where banks can truly differentiate, engage existing customers and attract new customers, reducing churn and increasing retention, customer lifetime value and therefore profitability. The more a bank can personalise their loyalty programmes and give customers real-time compelling offers, the better chance they have at retaining that customer.

The most common loyalty programmes being offered by banks today tend to be tedious for the customer to manage, offer no or very little capability for customer personalisation and don’t help the customer build a connection to the bank’s brand. Traditional loyalty programmes such as discounts, points and cashback promotions used to be the only options, but now there is a better way.

Putting customer data to work

Companies like Smart Engine have developed advanced technology making consumer purchase data accessible within the secure firewalls of banks to ensure privacy. For the first time, banks can evaluate customer data from multiple data sources to provide the highest offer conversion to their customers through personalised targeting. This breakthrough is called Card Linked Marketing and it is dramatically changing customer loyalty programmes.

Card Linked Marketing

With Card Linked Marketing your customers will see highly relevant ads targeted to them based on their recent purchase behavior. Predictive analytics identify the most profitable customer segments for merchant target marketing campaigns. Smart Engine integrates SKU data with information from your CRM systems, merchants and social networks to identify buying behaviour and product preferences of your customers.

This type of platform ensures that consumer data will remain private while delivering personalised offers right to a customer’s mobile phone with the highest chance of engagement. One of Smart Engine’s European customers is a payment processor and acquirer running loyalty platforms on behalf of multiple banks. This particular customer issued 10,000 unique coupons with a 79 per cent activation conversion and a 27 per cent rate of conversion into redemption.


Smart Engine is based in Vienna, Austria with offices in New York, Hong Kong and Moscow
+43 1 9195041-0
www.smartengine.at