There is no questioning consumer appetite for location-based, real-time offers or the momentum of publishers who have created the space. Industry experts have projected annual sales to eclipse $4 billion in 2015, up from about $2 billion in 2011 and just $873 million in 2010—a 35 percent annual growth rate.
Yet for all of this incredible popularity and growth, most merchants and marketers struggle with measuring the impact of online promotions, including daily deals, coupons and location based offers. Which new customers made purchases specifically because of an offer or campaign? Was the offer overly generous? Would they have responded to a lesser offer? Did they make ancillary purchases? Did they come back? How often? Was the promotion profitable?
Gaining the ability to answer these questions is at the core of First Data’s new white paper, “Going Beyond Redemption: Closing the Loop with Card-Linked Offers”—in short, it’s the ability to create and deploy customer acquisition or loyalty-driven offers, and then apply precise and insightful analytics to measure the effectiveness of each offer or campaign. Measurement is clearly only half of the equation, however. Leveraging the data collected to make budgeting and pricing decisions—as well as tactical marketing choices—is critical for success.