Loyalty platforms: Simplifying fintech industry

Loyalty platforms: Simplifying fintech industry

Loyalty platforms can be incredibly lucrative, high-value partners for almost every category of clients

Neha KulwalUpdated: Tuesday, May 17, 2022, 07:30 PM IST
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One reason why loyalty partners are quite effective at driving new customer growth is because they can leverage their customer data in the best possible manner / Representative image |

Revenue generation and customer acquisitions are two major concerns every brand looks into. To tackle these two important aspects, brands nowadays have been considering various cost effective alternatives like loyalty programs.

Loyalty platforms can be incredibly lucrative, high-value partners for almost every category of clients, especially fintech category advertisers. At the end of the day, a loyalty partner can incentivize potential consumers with rewards on any action within the sales funnel deemed appropriate.

Just as loyalty partners take many forms, the rewards they offer also vary. Sometimes the user is rewarded in the form of reward/ loyalty points and other times it can be in the form of a voucher or a coupon of some other brand. While many well known brands have already discovered the unique benefits of partnering with loyalty sites, many are yet to undiscover the benefit that the platform brings along.

In 2021, according to Admitad stats, the top ten largest loyalty partners drove an average of 10 percent-15 percent of brand’s total affiliate program revenue for over 90 industry-leading brands across all the categories and expected to increase its share by 25 percen-30 percent.

Loyalty partners vs other promotional mediums

Every brand has a set of target audience they look to reach out to, mostly genuine and loyal set of consumers who have a high spending pattern and transact online regularly, where loyalty partners come into the role of offering access to such an audience base. They tend to differ from other types of partners like coupon, deals or other contextual websites (e.g. content coupon or deal partners) because of their ability to drive specific actions along with nuanced targeting capabilities.

For example, a loyalty partner can target customers on a more granular level. This targeting could include purchase history, geo-targeting and other types of intricate targeting capabilities. In addition, the loyalty platform’s audience are extremely rewards-driven. This allows brands to work creatively with loyalty partners to drive consumers to complete an action (e.g. signing up for something) or moving them further down the purchase funnel. Another advantage of these rewards are they can be later redeemed as vouchers.

Advantages for fintech clients

One big advantage for a brand is that it gets exposure to the loyalty platforms’ loyal customer base that is genuine, regularly transacting and targeted as per the brand’s requirement. Not only does the user transact to get rewards or loyalty points, it also ensures top of the mind recall through frequent email and push notification promotions to their audience.

One reason why loyalty partners are quite effective at driving new customer growth is because they can leverage their customer data in the best possible manner. As brands work with loyalty partners and extrapolate more data, new strategies can be formed and, in turn, the loyalty partner is often responsible for a high number of new customers. One can save resources, and one does not need to arrange all the cooperation yourself and allocate a separate team of managers to work with loyalty programs. All these bustles and costs remain on the side of the affiliate network.

Also, there is no risk of wasting time on cooperation with those loyalty programs that do not suit you. The effectiveness of each program is immediately visible, and if the quality of traffic or the tools of one of the loyalty programs are questionable for your product, you can easily sever cooperation literally by one request to your personal manager in the affiliate network. It is easy to evaluate and control the flow of orders from this traffic source - because you see all the data in one window.

Working with loyalty partners via affiliate networks

While working through an affiliate network, brands get direct access to such loyalty platforms in one go. The brand does not have to go through the hassle to reach out to every affiliate separately. However, they get a dedicated account manager support to build up the affiliate channel through these premium inventories. Also, affiliate networks have hands-on experience in running multiple campaigns of similar category. This gives an extra edge in understanding what model would work best for their performance campaign. Along with other promotional media like Contextual, SMS, Social Media, Micro-influencers that an affiliate network offers for fintech advertisers, Admitad has over 10+ loyalty platforms onboarded.

(Neha Kulwal is Country Manager, Admitad India)

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