Browse All Articles

In the months since states first declared shelter-in-place orders and economic uncertainty gripped the country, consumers have reprioritized their spend. As they spend more on some categories and less on others, it can be hard for marketers to gauge whether these represent permanent or temporary shifts in behavior. To help answer this, we’ve taken a look at how share of consumer spend has shifted between industries over the past few months. The results are both expected and surprising.

Before we dig in, one note about methodology. In this analysis, we’re not tracking the overall decrease in consumer spend compared to this time last year. Instead, we’re using our whole-wallet view of consumer spend to illustrate what percentage, or share of spend, each industry receives.

Here are key trends for industries that have seen some of the biggest shifts in share:

Retail gains share

Despite physical store closures, retail’s share of consumer spend spiked in April and has consistently remained higher than it was before the pandemic. As of June, retail spend was up by 8.1 share points since February. At first glance, this may seem surprising given the dramatic decline of retail sales early in the pandemic. A closer look reveals that eCommerce and “essential” retail categories are driving the industry’s growth.

In fact, eCommerce spend is up 51.5% year-over-year in June. Additionally, as reported in earlier State of Spend reports, we’ve seen retail spend consolidate within many essential retail categories – including mass merchandisers, home & garden retailers, and auto parts. Interestingly, these essential categories are also driving the first increase of in-store retail spend that we’ve seen since the start of the pandemic. Retail in-store sales were up 1.2% at the start of July compared to this same time last year — a significant early sign of recovery considering in-store sales were down -12.8% year-over-year in Q2.

Tip: Recapture in-store spend as consumers return to physical locations

While dependence on eCommerce is here to stay, the return to in-store spend represents a critical, time-sensitive opportunity for non-essential retailers to regain the share they’ve lost. They must act quickly to capture their rightful share of customers’ discretionary spend—especially as other industries like travel and restaurant are fighting for those same budgets. Cardlytics can help retailers bring back lapsed customers by using our purchase insights to reach consumers as they begin to increase their discretionary spend. Well-timed, targeted cash-back offers in our ad platform keep customers engaged and drive repeat purchases.

Grocery & restaurant spend begins to normalize

Initially, grocery saw some of the biggest gains as customers stocked up on quarantine essentials — increasing by 7.1 share points between February and March. By contrast, restaurant spend saw a decrease early on as they closed locations and consumers prepped more meals at home. Recently, share of spend between restaurants and grocery has normalized as restaurants reopen and consumers diversify their weekly menus. But things are hardly back to normal. Third-party delivery disruptors are now in the mix.

Even though customers are returning to some of their pre-COVID dining and grocery shopping habits, spend with third-party delivery apps is now higher than it was at the start of the shutdown and continues to gain momentum each week. Restaurant delivery appears to be here to stay as consumers continue to increasingly rely on these convenient, app-based services to get meals on the table. Some of these platforms are even rolling out online grocery delivery options alongside restaurant menus.  

Tip: Rebuild relationships with customers who have turned to delivery

As grocers and restaurants compete for at-home dining spend, both have the added challenge of reestablishing direct relationships with customers who now rely on third-party delivery. Using purchase insights, Cardlytics’ ad platform targets customers who have switched to delivery and engages them with timely offers that influence their next meal occasion.

Travel categories reach a tipping point

Lastly, let’s take a look at the travel industry. Travel was one of the first industries to see a drop in spend with the start of the pandemic—decreasing 6.3 share points between February and April. While travel spend is still down year over year, it has started to show early signs of recovery as select categories benefit from the summer travel season.

Both lodging and rental car categories have now regained more than half of the weekly spend they previously lost compared to a low point the week of 4/2. This is largely driven by an increase in alternative lodging spend as customers head to regional and local destinations for a change of scenery. For travel brands looking for a tipping point to indicate when consumer spend may return, this could be the signal they’ve been waiting for.

Tip: Act quickly to minimize the impact of disruptors

With alternative lodging and homestay brands leading the path forward for travel recovery, traditional hotels need to act quickly to bring their customers back before they’re lost for good. Cardlytics’ campaigns minimize the risk associated with returning to marketing with a pay-for-performance model. We drive proven results and positive cashflow with no upfront costs.

Want more actionable insights?

There is no doubt that consumer spend has yet to normalize. We’re still seeing dramatic shifts between industries, categories and even buying channels. We’re here to help you make sense of it all and find your most successful path forward.  With insight into 1 out of every 2 U.S. card swipes, Cardlytics puts purchase insights into action every day for advertisers in banks’ digital channels. Contact us today for an analysis and campaign strategy customized for your brand.

These trends were recently featured in our Cardlytics State of Spend report, which follows important shifts in consumer spend and tracks early signs of recovery. Download our latest issue today and be sure to check back for the next issue.

Analysis in this report is based on data derived from the Cardlytics platform between March 5^th and July 8^th. While analysis is representative of purchase behavior, it does not include every customer or every financial institution on the Cardlytics platform.

With access to 1 in 4 UK card transactions, Cardlytics helps marketers understand and respond to the impact of COVID-19 on their industries and customers. In parallel with our US State of Spend series, we are pleased to offer the second installment of the UK State of Spend, tracking weekly changes in consumer spend across the UK and actionable tips to drive growth.

Inside this issue:

• Overall spend increases each week, giving brands an opportunity to recover sales
• The Cardlytics Recovery Indicator shows where discretionary spend is coming back
• Non-essential retail spend returns as lockdown restrictions ease
• Customers rapidly increase their gaming and streaming spend
• How restaurant spend has shifted with the rise of meal kits and delivery services

Take action with targeted ads

Trends like those reported in the UK State of Spend set the foundation for precisely targeted campaigns in our 100% brand-safe and fraud-free ad platform. Our promotions in banks’ digital channels drive measurable sales for marketers and provide valuable savings for customers.

Contact us for an analysis and campaign strategy customized for your brand.

Be sure to check back for the next report and view the all of the Cardlytics State of Spend series here.

Partnership increases scale to surpass 150 million monthly active users

ATLANTA, GA – July 22, 2020 – Cardlytics (NASDAQ: CDLX), an advertising platform in banks’ digital channels, announces the launch of My Wells Fargo Deals, a new rewards and loyalty program for the fourth largest bank in the U.S.

Through My Wells Fargo Deals, customers can activate offers to earn cash back on everyday purchases, with targeted digital marketing designed to drive incremental in-store and online sales for merchant partners. With insights into more than $3 trillion in annual consumer spend, the Cardlytics launch of My Wells Fargo Deals significantly increases the platform’s scale and ability to reach bank customers in a secure, brand safe channel. This annual consumer spend represents one out of every two credit and debit transactions in the U.S.

Our partnership with Wells Fargo further increases our platform’s reach to compete with the major players in the advertising space, helping brands reach consumers in a trusted, secure channel. Through our valued bank partnerships, we are able to provide marketers a view into nearly $6 million in spend every minute. This gives us incredible insight to shape their marketing strategies and drive purchases from the consumers who are most likely to buy.

Lynne Laube, CEO and co-founder of Cardlytics

Having strong relationships with leading marketers across a variety of industries, Cardlytics has driven more than $33 billion in measurable sales for marketers while giving nearly $500 million back to consumers through these cash back rewards.

“We know that consumers today are increasingly looking for ways they can save money while receiving more value for their everyday spending,” said Adam Vancini, head of deposit payments for Wells Fargo’s Deposit Products Group. “Partnering with Cardlytics on this new offering allows us to provide our customers with personalized, cash-back deals from merchants across the U.S. It also enables us to provide some of the top consumer brands a platform to reach customers at a time when they are already thinking about their finances.”

For more information on Cardlytics, visit cardlytics.com.

About Cardlytics

Cardlytics (NASDAQ: CDLX) uses purchase intelligence to make marketing more relevant and measurable. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking 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, San Francisco and Visakhapatnam. Learn more at www.cardlytics.com.

Hudzik will lead Cardlytics’ Bank Partner Relationships Serving 150M+ Monthly Active Users

Atlanta, GA – Aug. 3, 2020 – Cardlytics, Inc., (NASDAQ: CDLX), an advertising platform in banks’ digital channels, is growing its bank leadership team with the addition of Farrell Hudzik as Executive Vice President, Financial Institutions. Hudzik will focus on evolving and differentiating the Cardlytics program for all participating U.S. financial institutions. She will also help to further integrate the platform within the banks beyond their respective offers’ programs.

As our platform continues to grow, we’re focused on helping our bank partners deliver even more value to their customers, while driving spend and overall loyalty. We’re thrilled to welcome Farrell, whose extensive background and expertise in helping banks maximize the value of their programs will prove instrumental for our partners.

Lynne Laube, Cardlytics CEO and co-founder

Hudzik joins Cardlytics from Synchrony where she was Senior Vice President, Enterprise Customer Engagement. In that role, she was responsible for developing and leading Synchrony's first Customer Experience Design and Insights Team. Previously, Hudzik was Managing Director at Accenture Interactive leading their Global Loyalty and Rewards Practice. Prior to joining Accenture, Hudzik was Vice President, Financial Services and Global Alliance Executive at Epsilon where she focused on delivering solutions and expanding relationships with clients in financial services.

About Cardlytics

Cardlytics (NASDAQ: CDLX) is an advertising platform in banks’ digital channels. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking 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, San Francisco and Visakhapatnam. Learn more at www.cardlytics.com.

We recently launched the Cardlytics State of Spend series to help marketers navigate changes in consumer spend. With our purchase insights, we run precisely targeted campaigns in banks’ digital channels. Our campaigns are highly effective at driving incremental sales and providing valuable savings for consumers. Understanding where consumers are most likely to buy is a powerful starting point for driving real business growth.

In our latest State of Spend issue, we’ve introduced the Cardlytics Recovery Indicator so that brands can gauge consumer confidence and choose the right time to ramp up their marketing. Learn which regions are further along the path to recovery as we map our Recovery Indicator for each state and check out our spotlight on the impact of Georgia’s recent reopening.

Inside this issue:

• COVID-19’s impact on overall spend 
• The Cardlytics Recovery Indicator
• Tracking recovery by state
• Georgia spotlight: the impact of states reopening
• Actionable tips for long-term gains

Want more actionable insights?

With insight into 50% of US transactions, Cardlytics puts purchase insights into action every day for advertisers in banks’ digital channels. Whether marketers are experiencing ups or downs in consumer spend, we're here to help our clients navigate the curve and drive measurable sales.

Contact us for an analysis and campaign strategy customized for your brand.

Be sure to check back for the next Cardlytics State of Spend report and view last month’s edition here.

Atlanta, GA – July 29, 2020 – Cardlytics, Inc., (NASDAQ: CDLX), an advertising platform in banks’ digital channels, announced today that David Evans, chief administrative officer and former chief financial officer, will retire from the Company at the end of the quarter after six years, including four as CFO.

Evans helped drive Cardlytics’ transformation from an emerging technology company into a leading digital marketing platform.

“On behalf of the company and the Board of Directors, I want to thank David for his six years of exemplary service to Cardlytics,” said Scott Grimes, Cardlytics co-founder and executive chairman. “David was instrumental in developing and executing the company’s strategy that helped position us as a leader in our market.”

Lynne Laube, Cardlytics co-founder and CEO added, “David was an incredible partner as we completed our IPO in 2018, and since then has helped guide Cardlytics as a public company. He has been a strategic and valued partner to our business leaders, and I appreciate his support in my recent transition to CEO.”

I would like to thank the Board, Scott and Lynne, and the talented team at Cardlytics. It was an honor and a privilege to work alongside such a fine group of individuals and I am grateful for the six exciting and impactful years at the company.

David Evans, Chief Administrative Officer

About Cardlytics

Cardlytics (NASDAQ: CDLX) is an advertising platform in banks’ digital channels. We partner with financial institutions to run their banking rewards programs that promote customer loyalty and deepen banking 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, San Francisco and Visakhapatnam. Learn more at www.cardlytics.com.

The Cardlytics State of Spend series helps marketers track how overall spend is changing each week and take action to drive incremental sales. In our latest issue, we’re reporting current spend trends that impact retail, grocery, travel, eCommerce, and more.

In this edition, we spotlight how share of spend has shifted between industries as customers establish new buying habits. With each issue, we’re sharing the Cardlytics Recovery Indicator—a barometer or when discretionary spend is coming back and where brands can expect to recover the fastest.

Highlights:

• In-store retail sales now showing positive year-over-year growth
• Each grocery purchase is worth more than ever
• Travel categories reach a tipping point on the path to recovery
• Case study: National telecommunications company acquires high-value subscribers

Take action with targeted ads

The trends we identify in our State of Spend set the foundation for precisely targeted campaigns in our 100% brand-safe and fraud-free ad platform. Our offers in banks’ digital channels drive measurable sales for marketers and provide valuable savings for customers.

Contact us for an analysis and campaign strategy customized for your brand.

Want more Cardlytics State of Spend?

Be sure to check back for the next report and view the all of our State of Spend series here.

Across the restaurant industry, marketers face a unique set of challenges as customers rapidly change their dining and meal prep habits. Restaurants looking to drive near-term sales need to understand how consumer behavior is shifting and where spend is coming back. By analyzing purchase data for our recent State of Spend report, Cardlytics identified key spend trends to help restaurant marketers track early signs of recovery and take action to drive sales. Here are three must-know highlights:

Appetite for delivery grows faster than ever

Cardlytics’ purchase insights show that demand for delivery is now higher than it was at the start of the shutdown. Consumers increasingly rely on these convenient, app-based services to access a wide variety of menus. In fact, spend with third-party restaurant delivery now is up 119.2% compared to this time last year—a 92.6 percentage point increase from mid-March. Even though customers are adding their favorite dining spots back to their weekly menus and placing orders directly with restaurants, their third-party delivery spend shows no signs of tapering off.

Rebuild relationships with customers who have turned to delivery

As restaurants reopen locations and expand their carryout options, they have the added challenge of reestablishing direct relationships with customers who now rely on third-party delivery. Using purchase insights, Cardlytics’ ad platform targets customers who have switched to delivery and engages them with offers that influence their next dining occasion.

For those interested in reading more on how convenience has impacted the rise of delivery, check out this Nation's Restaurant News article. 

Average check size is on the rise

Now more than ever, every purchase counts. Despite the fact that overall restaurant sales remain down, the average restaurant check is on the rise. This suggests customers are purchasing more meals for the whole family. Across all restaurant categories, order values are now up significantly compared to this time last year—especially for categories with popular to-go options.

Note, full-service restaurants have seen a more modest 4% increase in order value - likely due to limits on in-restaurant dining and reduced alcohol sales.

Customers shift to contactless

As customers remain cautious about person-to-person contact, restaurants may want to consider alternatives to cash payments and paper coupons.

One of our clients, a quick-service restaurant chain, recognized consumer behavior was shifting away from these physical touchpoints amid concerns about COVID-19. They sought a marketing solution that aligned with consumers’ growing adoption of card-based payment methods and provided new incentives to attract customers to their restaurants.

With an audience of over 150M US bank customers and insight into 1 out of every 2 US card swipes, Cardlytics had the scale and insights to engage the restaurant chain’s most likely customers. Through targeted offers in banks’ digital channels, we helped give their customers a reason to order without the use of a paper coupon. Reporting from their recent campaign showed that for every dollar spent, Cardlytics drove an additional $4.00 in incremental return. With our pay-for-performance model, our campaigns minimize risk by driving positive cashflow with no upfront costs.

Turn insights into action

As customers establish new buying habits, marketers need to act quickly to retain their customers and drive sales. Cardlytics is uniquely positioned to help restaurants reach their most likely guests. Precisely targeted offers engage customers in their banks’ digital channels and influence their next dining occasion—ultimately driving incremental sales and growing market share. Contact us today for an analysis and campaign strategy customized for your brand.

These insights were recently featured in our State of Spend report, which follows important shifts in consumer spend and track early signs of recovery. Download our latest State of Spend Report today and be sure to check back for the next issue.

Analysis in this report is based on data derived from the Cardlytics platform between March 5^th and June 17^th. While analysis is representative of purchase behavior, it does not include every customer or every financial institution on the Cardlytics platform.

When Scott and I founded Cardlytics 12 years ago, we knew that bringing the banking industry and the advertising industry together was a unique idea. Building something that drives loyalty for banks, incremental sales for advertisers, and clear financial benefit to their mutual customers has been no small feat. Over the years, we have consistently expanded our relationships with the top banks, both in the U.S. and the UK, which has offered significant opportunities for advertisers as our reach has grown.

Today, I’m proud to formally announce another major accomplishment for our business with the launch of My Wells Fargo Deals in partnership with Wells Fargo bank.

Scaling the Rivals by Partnering with the Largest Banks

Partnering with the fourth largest bank in the U.S. further increases our platform’s scale to rival other major players in the advertising space.

Now with more than 150 million monthly active users, marketers have an even greater ability to reach engaged bank customers in a pristine, brand-safe environment through Cardlytics. We influence where a consumer makes a purchase and offer them tangible value in the form of a cash-back reward. So, brands and banks alike can feel good about driving sales in a way that builds a positive experience for millions of people.

Customer Rewards Resulting in Billions of Sales

We’ve saved consumers more than $500 million in rewards and are proud to extend this value to Wells Fargo’s customers. And with an even broader addressable audience for our advertising partners, we’ll continue to build on the $33 billion in measurable sales we’ve driven for them to date.

Congratulations to the team at Wells Fargo and our teams at Cardlytics for completing the launch of My Wells Fargo Deals in the midst of a global pandemic. It’s certainly an accomplishment to be celebrated.