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Cardlytics powers rewards programs for four of the largest U.S. banks

ATLANTA, GA – Feb. 17, 2022 – Cardlytics (NASDAQ: CDLX), one of the largest digital advertising platforms, announced today the extension of the PNC Purchase Payback, a loyalty program for PNC Bank, N.A., that provides customers rewards on every day purchases. The program originally began in 2011 and was expanded following PNC’s acquisition of BBVA USA. Cardlytics now has relationships with four of the largest banks in the country, with insights into more than $3.5 trillion in annual consumer spend.

PNC Purchase Payback features exclusive offers of up to 20% cash back on purchases from some of the largest brands in the country, including Starbucks™, McDonalds™, PetSmart™, Dunkin™, Five Guys™, Advance Auto Parts™, Panera™, Big Lots™ and Best Western™. The offers are carefully selected to add personalized value for customers, while also driving in-store and online sales for Cardlytics’ merchant partners.

“Our partnership with PNC Bank allows us to connect more consumers with our offers, driving engagement for the bank while also positioning Cardlytics among the major players in the advertising space,” said Farrell Hudzik, EVP, Financial Institutions, Cardlytics. “Through our bank partners, we offer marketers access to a trustworthy platform with an engaged audience, giving us a tremendous opportunity to make an undeniable impact for brands.”

With more than 170 million monthly active users, Cardlytics directly connects consumers in banks’ digital channels to brands in a variety of industries including retail, restaurant, travel and more.  As one of the largest digital ad platforms, Cardlytics sees 1:2 card swipes in the US.

“Offering a program that provides additional rewards is an important way we show our customers how much we value their relationships,” said Todd Rosenthal, PNC Bank general manager of credit cards. “Because the offers on our PNC Purchase Payback are based on past purchases, our customers receive relevant, personalized offers from brands they shop every day, creating a truly rewarding experience.”

PNC Purchase Payback is available to PNC Bank’s consumer debit and credit portfolio customers, including some small business accounts, via mobile, online banking and email.

For more information on Cardlytics, visit cardlytics.com. For more information on PNC Purchase Payback, visit PNC.com.

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About PNC Bank

PNC Bank, National Association, is a member of The PNC Financial Services Group, Inc. (NYSE: PNC). PNC is one of the largest diversified financial services institutions in the United States, organized around its customers and communities for strong relationships and local delivery of retail and business banking including a full range of lending products; specialized services for corporations and government entities, including corporate banking, real estate finance and asset-based lending; wealth management and asset management. For information about PNC, visit www.pnc.com.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, Los Angeles, San Francisco, Austin, Detroit, and Visakhapatnam. Learn more at www.cardlytics.com.

Conference Call and Webcast

Atlanta, GA – February 15, 2022 – Cardlytics, Inc., (NASDAQ: CDLX), one of the largest digital advertising platforms, today announced that its fourth quarter ended December 31, 2021 financial results will be released on Tuesday, March 1, 2022, after market close. The company will host a conference call and webcast at 5:00 PM (ET) / 2:00 PM (PT) to discuss the company’s financial results.

A live audio webcast of the event will be available on the Cardlytics Investor Relations website at http://ir.cardlytics.com/.

A live dial-in will be available at (866) 385-4179 (domestic) or (210) 874-7775 (international). The conference ID number is 4148496. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on March 8, 2022 at (855) 859-2056 (domestic) or (404) 537-3406 (international). The replay passcode is 4148496.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is a digital advertising platform. We partner with financial institutions to run their rewards programs that promote customer loyalty and deepen relationships. In turn, we have a secure view into where and when consumers are spending their money. We use these insights to help marketers identify, reach, and influence likely buyers at scale, as well as measure the true sales impact of marketing campaigns. Headquartered in Atlanta, Cardlytics has offices in London, New York, Los Angeles, San Francisco, Austin, Detroit and Visakhapatnam. Learn more at www.cardlytics.com.

The reduce, reuse, recycle mantra is seeping its way into how we shop.   

A growing focus on climate change over the past few years has created a new sustainable generation that demands more from brands, while at the same time pushing “conscious consumerism” into the mainstream.

From investing in quality, timeless wardrobe staples to shifting their spend to second-hand marketplaces and choosing brands based on their ethical credentials, today’s consumers are increasingly re-evaluating their purchase decisions and the impact they have on the planet.  

The result? Brands are now being forced to re-think how they market their goods, while having a tangible impact on retailers’ bottom lines. 

Our latest spend data, based on the purchasing habits of over 22 million UK bank cards, shows that in the past year, spend at second-hand marketplaces has jumped 85%. 

Whether it is a high-end designer bag, a vintage chair, or some pre-loved children’s toys, with ‘new’ no longer being on trend, it’s no surprise that UK consumers are now almost four times more likely to make a purchase with the likes of Depop, Vinted or eBay than they are with fast fashion brands.  

In fact, the number of second-hand purchases customers make on average per year increased by 28% in 2021, compared to a 1.1% rise for traditional retailers. It is clear that second-hand marketplaces are taking a slice of the traditional retail pie.  

Conscious consumerism isn't a "flash in the pan" fad

This shift in consumer behaviour is pivotal and one traditional retailers must respond to. We have already seen large fashion brands venturing into the sustainability space to capitalise on this trend, offering consumers an alternative and more sustainable way to shop. 

H&M invested heavily in its Conscious range, ASOS created its own marketplace to give second-hand and vintage items a platform, while M&S introduced in-store clothing recycling programs to boost circularity of its products.

Even “fast fashion” brands like Missguided are taking steps to improve their climate footprint and appeal to this consumer base, with the introduction of a new Restyld range made from recycled materials.  

Marketers should think of conscious consumerism not as a challenge to their traditional growth plans, but – like Missguided has - as an opportunity to tap into a new consumer group, create new opportunities to engage with customers, and build more meaningful and more loyal relationships with shoppers.  

So how can retailers compete with the second-hand marketplace? 

To stay “on trend” with this growing set of consumers, retailers and marketers should consider making their eco-friendly ranges front and centre of their marketing campaigns and offer discounts on such clothing lines to shoppers.  

Retailers could also introduce incentives - such as vouchers - for consumers to recycle their old items in store, to help drive footfall, future purchases, and build brand affinity. 

Targeting customers with relevant offers through their banking channel, based on their spend patterns, is an effective way retailers and marketeers can increase engagement and purchases, whether that is online or in-store. 

And with more consumers looking closely at brands’ ethical endeavours, creating hubs on your website and app for your environmental credentials will go a long way in appealing to this growing consumer group.  

How Cardlytics can help 

Because we see 1 in every 4 UK bank transactions, we can develop a marketing strategy to help your brand compete in this new retail market. Contact us today for an analysis and campaign strategy customized for your brand.   

After a year of staycations, remote work, and eating in, Americans were ready to hit the road in 2021. By August, the number of miles driven had almost reached pre-pandemic levels, and in some states, even exceeded it. For most drivers, that meant spending more on maintenance and repairs to keep their current cars running smoothly as new cars were in short supply— great news for the auto parts and service industry.  
 
Cardlytics’ purchase insights uncovered some interesting trends in the auto parts and service category that can help guide auto marketers’ growth strategy for 2022.  

Let’s dive in.  

Double-digit increases were seen in auto parts and service spend 

While the number of customers spending on auto parts and services declined slightly in 2021, spending per customer increased by more than 16%. Average order value (AOV), or the average dollar amount a customer spends each time they make a purchase, was up nearly 13%, and customers made 3% more trips compared to 2020.  

These auto trends are likely to continue well into 2022 and beyond. New car inventory is down, thanks to chip shortages, which is expected to continue through 2023. For motorists returning to their pre-pandemic driving habits, that’s a strong incentive to keep up with regular service and repairs to extend the life of their current cars.  

Auto parts spend shows continued growth 

Spending on auto parts was up 8% year-over-year (YoY), driven primarily by AOV. Inflation and supply chain woes account for some of the increase, but customer trips rose by nearly 4%, suggesting drivers are staying on top of preventive maintenance and repairs.  

While both multichannel and online-only auto parts spend increased in 2021, multichannel retailers did slightly better, thanks to stronger customer retention. Consumers may be getting oversaturated with online-only auto brands, as these brands saw nearly 7% fewer customers YoY, while multichannel brands only experienced a 0.6% customer decline.  Online-only consumer spend grew 11.9%, led by a 10.2% AOV increase. However, due to a decrease in customer count from 2020, total online-only auto parts spend was up 4% YoY. Meanwhile, multichannel’s 9.2% growth was driven by an AOV gain of 6.9%. 

Multichannel auto parts retailers who win the loyalty of DIY mechanics are well-positioned to see even greater gains in 2022 if market conditions persist. 

Dealership growth leads auto service trends 

Spending on auto service grew 18% YoY in 2021, but growth wasn’t equally spread between dealerships and third-party service brands. Dealership service spending was up 21% overall, compared to just 13% for third-party brands.

• Customer count was also up 0.4%, but lagged the growth experienced by dealership service centers.

The big story then is that dealerships appear to represent a safe and trusted place for hands-off owners to service and repair their cars.  

So, how can the industry capitalize on auto trends? 

The $115 billion auto parts and service market is poised for growth in 2022 and beyond. Auto brands that effectively segment and target customers based on their unique needs and spend patterns are better positioned for growth.  

For auto parts and service brands looking to drive sales as share of spend shifts in 2022, segmenting and targeting your best customers with the right offers and product mix is the key to success.  

With our purchase insights, Cardlytics identifies the customers most inclined to spend on auto parts and service and engages them with targeted offers through their trusted bank channels. Contact us today to learn how partnering with Cardlytics can help you leverage auto industry trends and jumpstart growth. 

After months of suggesting inflation was a transitory phenomenon, Treasury Secretary Janet Yellen finally admitted what restaurant brands have known for some time. Inflation isn’t going anywhere any time soon. And it’s not only impacting restaurant prices, it’s impacting restaurant consumer trends in measurable ways.

Key takeaways:

• Check sizes are higher this year, likely driven by price increases due to inflation.
• Customer frequency is down across all restaurant segments.
• Online orders are slightly smaller compared to in-store orders in limited service restaurants, suggesting a change in consumer behavior.
• Higher customer counts are obscuring the drop in customer frequency for loyal customers.

If the current inflation dynamic persists in 2022 as predicted, restaurant brands need to find new ways to increase customer frequency for loyal customers or increase margins to stay ahead of the inflationary curve.

The prevailing narrative about restaurant trends

Early in the pandemic, government restrictions and changes in consumer behavior devastated the restaurant industry. Restaurant share of consumer spend dropped nearly 70% in 2020.

Restaurant spending made a comeback in 2021, but there’s still a ways to go to hit pre-pandemic projections. Major fast-food chains like McDonald’s and Taco Bell reported sales well above 2019 and 2020 levels but at a high level, it appears the great restaurant recovery is well underway. 

But, there’s more to current restaurant consumer trends than meets the eye. The impact of inflation on the economy isn’t equal across all sectors and restaurants are feeling the pinch in a major way. In addition to spiking ingredient prices, supply chain snarls and labor shortages are making it increasingly difficult for restaurant brands to maintain their profit margins.

Cardlytics’ insights into credit card spending paints an interesting picture of restaurant consumer trends. Here’s what we discovered about the true impact of inflation on the restaurant business. 

Key takeaway #1: Inflation is present in the form of higher average check size.

Average check sizes are up across the board, increasing more than 6% for pizza and QSR brands. Casual and full-service dining saw the largest increases at 10.4% and 10.9% respectively. 

That corresponds to Bureau of Labor Statistics data showing a 5.9% rise in prices at quick serve restaurants (QSRs) and a 7.1% increase in full-service restaurant prices. 

Key takeaway #2:  Online check size was down compared to 2020 for limited service restaurants (LSRs).

Oddly enough, our insights show LSRs are seeing a decrease of nearly 5% in online check size compared to 2020, even though prices are the same for customers who order online versus in store. This restaurant consumer trend has gone unmentioned by the national trade media. 

While the exact reason for the decline isn’t clear, one possible explanation is that as more people return to the office for work, they are only ordering for themselves versus ordering for the family when everyone was in work-from-home mode. 

Another possible explanation is consumers are savvier about their online orders after months of ordering takeout. They know what they like, and instead of sampling new menu items, they stick to tried-and-true favorites. 

Also, staff and product shortages are causing many restaurants to cut menu items. Diners may choose to substitute another menu item when eating in, but those who order online may opt to supplement missing menu items with something from their pantry or fridge. 

Key takeaway #3: Higher prices are offsetting the drop in customer frequency. 

While higher average check sizes are cause for celebration, current restaurant trends are not entirely positive. Compared to pre-pandemic levels, customer frequency is down between 10 and 20% across all restaurant segments. Unique customers are also down across all segments compared to 2019, except for QSRs.

While the impact of these declines is partially offset by higher average check sizes, it’s a potentially devastating development for long-term recovery. While repeat customers only represent about 15% of the customer base, they generate roughly a third of the revenue.  Restaurant brands with a robust omnichannel strategy are best positioned to win new customers and compete for their share of spend.

Bracing for 2022

While it’s impossible to predict the future, Federal Reserve Chairman Jerome Powell says surging inflation will continue this year and likely won’t dip until the end of the year. JPMorgan is predicting a labor shortage lasting three or more years, and the supply chain crunch is expected to last through the second half of 2022.

It all adds up to more rough waters for restaurant brands as consumers cut their spending in response to higher prices. If current dynamics persist, restaurants need to know where they can either drive more frequency or higher margins. Well-targeted advertising solves for both by shifting brand and traditional media spend to highly targeted performance marketing that encourages frequency among the most valuable customers while reducing the bite that advertising takes out of margins. 

One way for marketers to combat soft purchase behavior caused by inflation is to identify those customers who are most sensitive to price and who are seeking value. Cardlytics uses valuable insights to better identify, target, and convert ideal customers through their trusted bank channels by providing those customers with compelling, brand-specific digital rewards to drive incremental and profitable transactions.

By connecting the right people with the right rewards, Cardlytics helps brands strengthen their relationships with their most valuable customers and win new customers from competing brands. Get in touch today to see how Cardlytics can help weather the effects of inflation in 2022.

Which industry will take the bulk of consumer spend? 

What used to be considered two separate household budgets, one for groceries and one for dining out, has morphed into one overall food budget, thanks to pandemic-led shifts in how people eat. More dinners are being eaten at home causing restaurants to expand into delivery and take-out options. Meanwhile, grocery stores braced for a surge in traffic as more consumers requested delivery or curbside pick-up. While all industries faced upheaval during the pandemic, there’s no doubt that restaurants and grocery stores were among the most affected, with consumers’ eating habits and routines changing overnight. Both grocery and restaurant industries now face similar challenges in an uncertain marketplace - how to grow revenue and defend wallet share in the face of emerging third-party players.

But instead of working in competition with one another, Cardlytics’ Mike Novosel, industry lead for grocery, gas, and convenience and Matt Drewes, industry lead for restaurant, share how the two industries can peacefully coexist by answering these questions:

• What is your occasion share? Do you know how much you’re losing, gaining, and what you need to defend it?
• How do you want your customers to shop with you?
• What is your biggest opportunity?

In our first ever B2C Marketing Showdown, brands will learn how working with a partner like Cardlytics can help them retain their customers, regain lapsed customers, and perhaps most important to growth, earn customers that shop in-store and online.  

Watch this free webinar to knockout the competition and grow incremental revenue across categories.

https://youtu.be/6dbbXzX4zA4

Recently a coworker and I were discussing the many ways in which our jobs have drastically changed over the last year. As head of People for a global company with more than 600 employees, I have directly seen how the entire world has taken a collective step back to reassess the things that matter most, especially as it relates to the workplace. Employees are looking for fulfillment, something more than “just a job.”  

As I thought more specifically about how my job is different now than it was 12 months ago, I realized that last year, while we were doing a really good job at caring for our employees’ needs with great pay, insurance, and vacation policies it’s no longer enough.  This year, while we still offer great pay, insurance, and vacation, it’s less about just meeting needs, and more about anticipating the needs and wants of our employees. In short: how can Cardlytics help make life better, easier, and more fulfilling for our employees?  

This year, I now find myself waking up every morning thinking about how to make Cardlytics a great place where great people want to be. And while it’s only the second month of the year, I think we are off to a great start.  

Last year, we offered a gym membership discount.  This year, we realized gyms aren’t the only way to address wellness. If nothing else, the past two years have taught us that overall wellness is a priority. So, we are now reimbursing employees up to $1,000 for things like art classes, counseling, massages, financial wellness classes, and so much more. 

Last year, we launched tuition reimbursement for continuing education. This year, we’ve recognized that many people can’t think about continuing education because they are too saddled with existing student loan debt. So now we’re helping employees pay down their student loans with monthly contributions.  

As far as a vacation policy, we have always been quite flexible, allowing for unlimited time off, but in the second half of 2021 we learned that this wasn’t enough because even if you are on vacation your work is not. So, we began scheduling “company-wide days off" throughout the year for the entire organization to rest and recharge as a team. We even closed the office for an entire week between Christmas and the New Year.  No more worrying about missing a meeting or playing catch up on an important email. This has been such a success that we will continue this practice into the new year. 

While these are just a few of the ways we’re showing our employees that we value their time and contribution, it doesn’t stop there. I’m excited to continue this journey and discover more opportunities to support our employees in the years ahead.  

So, although the last year has been challenging to say the least - I wouldn’t want to do virtual school with my son again for any amount of money (kudos to the educators!) -  it’s reminded us to return our focus to our greatest asset: our people.  

Work will never be the same. And for Cardlytics, that is a wonderful thing.  

Want to come work with us? Check out our careers here. 

We’re in an era of enormous change, from shopper behavior and tech innovation to the business environment itself—and those in the gas, grocery, and convenience store markets are particularly feeling the upheaval. Caused by the convergence of multiple factors, the turbulence in the marketplace is expected to continue through 2022 and beyond.

Navigating these evolving trends is essential for the distributors, owners, and franchisees who keep our shelves stocked—and for the marketers with their eyes on the numbers. By understanding the changes and finding the opportunities they present, brands can do more than adapt: They can come out on top.

Four Top Trends for Gas, Grocery & Convenience Stores

Even before a global pandemic turned the world upside down, dramatic changes were pressing upon these industries. Each trend creates novel challenges, just as it produces new opportunities.

Trend #1: The Rise of Electric Vehicles & Alternative Fuels

Around 1.8 million electric vehicles (EVs) were registered in the U.S. as of 2020, up from 300,000 in 2016. EV ownership will no doubt increase as more Americans want cleaner cars and lower fuel costs. Gas stations are ideal locations for EV charging facilities, and many are adding electric plugs to their forecourts. And since charging a car takes longer than pumping gas (about 30 minutes), drivers have more time to relax inside the store. Savvy retailers are catering to these customers with enhanced opportunities for shopping, dining, and entertainment. The push toward greener vehicles is also boosting the demand for gas stations to provide other alternative fuels such as biodiesel and ethanol.

Trend #2: Shifting Public Policy & Gas Prices

Eco-aware consumers aren’t just affecting the automobile market, they’re also shaping public policies that will affect the gas, grocery, and convenience store industries. As concerns over climate change continue to mount, so does the likelihood of new legislation that’s designed to combat its environmental influence. Laws to reduce emissions, develop clean energy, and cope with climate change could greatly impact the prices that people pay for gasoline—and for everything else. ​​Because of regulatory and policy changes like these, fuel marketers have started adapting their marketing strategy to focus on more innovative opportunities, such as rewards partnerships with auto parts stores, or increased investments in biofuels.

Trend #3: Ongoing Supply Chain Issues

Since the pandemic began, we’ve all noticed the empty shelves and out-of-stock items at our local stores. Large-scale bottlenecks, the recent omicron variant spike, and other problems with the supply chain have disrupted the global flow of goods, causing record shortages on everything from toilet paper to refrigerators to bicycles. The result: higher prices, annoyed customers, and stressed-out retailers. And it’s not expected to end anytime soon. While covid spawned the supply chain crisis, it’s being exacerbated by the Great Resignation—the record number of Americans quitting their jobs, which topped 4.3 million this past November. Many of them are the minimum-wage earners who kept the wheels of commerce turning, like the warehouse workers and truck drivers that supply chains depend on. They’ll need to be lured back with higher wages and better benefits, which will increase consumer prices even more.

Trend #4: Limited-Assortment Grocers

Months of cooking at home on tight budgets has led to home-chef burnout, and led supermarkets to accelerate and expand their offerings of “limited assortments”—a smaller variety of grocery items and/or pre-prepared meals at lower prices. Discount food stores like ALDI, Save-A-Lot, Lidl, and Grocery Outlet are flourishing by selling their own private label products while eschewing most (or all) perishables like meat and produce. Service and staffing levels are significantly reduced, but shoppers don’t mind when the prices are around 40% less than traditional supermarkets. Inflation will likely drive more Americans to limited-assortment grocers, but supply chain woes may take a bite out of the bargains they offer.

Localized Markets Need Local Solutions

What does all this mean for gas, grocery, and convenience stores? Unlike some industries, these markets are highly fragmented and franchised. Numerous local and regional companies compete in a landscape that looks quite different depending on where you find yourself in America. The distinct, location-based focus of these industries means having localized marketing strategies can be a big step ahead in competitiveness. For brands where hyper-localization isn’t an option, grocery and convenience retailers should focus on minimizing friction for their customers and providing a much smoother and more positive purchase experience, which serves much the same end goal as hyper-localized campaigns. Brand messaging must connect with consumers—and offer specialized benefits that speak to this specialized audience.

National Distributors Feel the Impact

The effects of localization trickle up to national distributors, who sell directly to the retailers in these fragmented markets. To appeal to franchise operators, distributors must position themselves as value-creating entities with novel solutions. In the end, retailers must continue to find ways to create and showcase value to their customers; some may invest more in local, others in expanded partnerships, others in tech all in service of creating value. But change is happening rapidly with incredible tech innovations that are transforming the future of marketing—like Cardlytics.

How Cardlytics Helps Brands Navigate New Trends

Massive fluctuations are pressing on businesses today, from the broadest global trends to the tiniest local details. In a complex marketplace where each little snack purchase is connected to the worldwide economy, the right knowledge—and the right partnerships—can make all the difference. That’s where Cardlytics comes in. Our native ad platform works within banks’ digital channels to provide our partners with purchase insights, a powerful tool for driving marketing results. Together, we can pilot the seas of change and drive the results that bring success. Want to know more about Cardlytics? Please contact us today.