The 2023 holiday shopping season presented challenges for consumers as rising prices made it difficult to manage their spending. In response, merchants and card issuers leveraged item-level receipt data to provide tailored discounts and rewards to budget-conscious shoppers. A study of over 2,000 consumers revealed that nearly 63 million planned to make holiday purchases and were highly interested in using card-linked offers. Two-thirds of cardholders used card-linked offers during the holiday season, and 27% said they were highly likely to do so. The availability of discounts and the ease of use were key drivers of consumer interest in card-linked offers.
The survey also revealed that interest in card-linked offers was highest among top spenders, with 40% of consumers with children and 39% of millennials expressing a high likelihood of using them during the holiday season. Cardholders valued cash-back rewards, automatically applied discounts, easy checkout, and the opportunity to discover new merchants. Furthermore, product-specific card-linked offers for daily essentials, such as commuting and groceries, were highly sought after, with 60% of cardholders expressing a high likelihood of utilizing these offers for these expenses. Overall, 57% of consumers are at least somewhat likely to switch to merchants that provide product-specific card-linked discounts and rewards.
In conclusion, leveraging item-level receipt data to provide tailored and relevant card-linked offers can effectively engage holiday shoppers and everyday consumers. Personalizing and tailoring product-specific card-linked offers gives retailers a competitive edge in driving consumer spending, attracting new customers, and fostering long-term customer loyalty.
