Nearly 50% of customers between 26 and 34 say they are likely to switch banks to get targeted rewards, according to a new whitepaper from Cardlytics.
Institutions that use card-linked marketing see an overall decrease in attrition rates, according to the whitepaper. Customers that redeem at least one Cardlytics advertiser reward spend 4% more with their bank cards on average, it says, and customers who have activated rewards login to their online banking accounts 16% more.
"Banks shouldn't have to choose between growing revenue and maintaining customer relationships," said John Brown, president of U.S. operations at Cardlytics, in a Sept. 3 press release. "Card-linked marketing gives banks a way to meet a variety of customer engagement needs."
Cardlytics targets banks for its card-linked marketing program. The Atlanta, Ga.-based company introduced a Facebook rewards app, started planning push notifications for location-based offers and changed its logo last year.
Cardlytics has partnered with nearly 400 banks, including Bank of America and PNC Bank, to offer the program. Card-linked marketing is a useful but underused method to reach consumers, according to an earlier survey by Bank of America and The CMO Club.