11th November, 2020
A merchant must look at the overall market and consumer insights resulting from their co-brand card data to understand the profile and shopping behaviour of cardholders.
“Co-brand data enables you to fill in the blanks in consumer knowledge with a more holistic view of your customers’ behavior away from your brand,” said Paul Alexander, Group Chief Executive, Beyond Analysis during Ai’s Co-brand & Travel Reward Cards Virtual Conference 2020.
“It (significance of co-brand data) is often misunderstood by the organizations we work with,” said Alexander.
Often a co-brand relationship tends to be set up by the finance department within a merchant in order to generate additional revenue for the organization without thinking about the huge amount of value that could come from customer data collected by the financial services partner within a merchant’s co-brand partner relationship plus extended co-brand card relationships elsewhere. It is vital to assess - how much customers are transacting with you and with others on a certain co-brand credit card and with that financial services partner’s wider customer base. Insight that comes from beyond the main relationship is extremely critical, too. “A customer spending $1000 (via a merchant’s co-brand partner relationship) is spending $5000 with our competition. What would you do differently as a result of that knowledge,” must be probed and acted upon.
Insights from co-brand data:
“(Target) enriched knowledge and context of your own customers, even when they are infrequent,” said Alexander. The initiative must result in improved evaluation of customers’ true spending power and shopping behaviour to optimise marketing and commercial decision-making and investment.
By Ritesh Gupta