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Atlanta, GA – November 1, 2022 – Cardlytics, Inc. (NASDAQ: CDLX), a digital advertising platform, today announced financial results for the third quarter ended September 30, 2022. Supplemental information is available on the Investor Relations section of Cardlytics' website at http://ir.cardlytics.com/.

“We delivered solid double-digit growth despite the serious challenges present in the economy,” said Karim Temsamani, CEO of Cardlytics. “While the economy may be uncertain, I believe there is inherent resiliency in platforms that prove return on ad spend, and I am positive that we can grow profitably. There is a large opportunity ahead of us, and we will be disciplined in Q4 and beyond as we prioritize our goals and position the company well for the next ten years.”

“Our results this quarter were in line with our expectations given our clients' concerns about the economy,” said Andy Christiansen, CFO of Cardlytics. “There is a wide range of outcomes for Q4, but our highest priority is meeting our profitability and cash flow goals for 2023. We are focused on taking the necessary steps to ensure we can control our destiny and achieve our long-term goals.”

Third Quarter 2022 Financial Results

• Revenue was $72.7 million, an increase of 12% year-over-year, compared to $65.0 million in the third quarter of 2021.
• Billings, a non-GAAP metric, was $110.4 million, an increase of 12% year-over-year, compared to $98.4 million in the third quarter of 2021.
• Gross profit was $26.0 million, an increase of 6% year-over-year, compared to $24.5 million in the third quarter of 2021.
• Adjusted contribution, a non-GAAP metric, was $35.1 million, an increase of 11% year-over-year, compared to $31.6 million in the third quarter of 2021.
• Net income attributable to common stockholders was $6.3 million, or $0.19 per diluted share, based on 33.3 million fully diluted weighted-average common shares, compared to a net loss attributable to common stockholders of $(44.5) million, or $(1.35) per diluted share, based on 33.1 million fully diluted weighted-average common shares in the third quarter of 2021.
• Non-GAAP net loss was $(16.5) million, or $(0.50) per diluted share, based on 33.3 million fully diluted weighted-average common shares, compared to non-GAAP net loss of $(11.0) million, or $(0.33) per diluted share, based on 33.1 million fully diluted weighted-average common shares in the third quarter of 2021.
• Adjusted EBITDA, a non-GAAP metric, was a loss of $(12.7) million compared to a loss of $(5.2) million in the third quarter of 2021.

Key Metrics

• Cardlytics MAUs were 184.7 million, an increase of 8%, compared to 170.6 million in the third quarter of 2021.
• Cardlytics ARPU was $0.36 in the third quarter of 2022 and 2021.
• Bridg ARR was $22.1 million in the third quarter of 2022.

Definitions of MAUs, ARPU and ARR are included below under the caption “Non-GAAP Measures and Other Performance Metrics."

Fourth Quarter 2022 Financial Expectations

Cardlytics anticipates billings, revenue, and adjusted contribution to be in the following ranges (in millions):

 Q4 2022 GuidanceBillings⁽¹⁾$120.0 - $132.0Revenue$80.0 - $90.0Adjusted contribution⁽²⁾$38.0 - $44.0

1. A reconciliation of billings to GAAP revenue on a forward-looking basis is presented below under the heading "Reconciliation of Forecasted GAAP Revenue to Billings."
2. A reconciliation of adjusted contribution to GAAP gross profit on a forward-looking basis is not available without unreasonable efforts due to the high variability, complexity and low visibility with respect to the items excluded from this non-GAAP measure.

Earnings Teleconference Information

Cardlytics will discuss its third quarter 2022 financial results during a teleconference today, November 1, 2022, at 5:00 PM ET / 2:00 PM PT. A live dial-in will be available after registering at http://ir.cardlytics.com/. Shortly after the conclusion of the call, a replay of this conference call will be available through 8:00 PM ET on November 8, 2022 on the Cardlytics Investor Relations website at http://ir.cardlytics.com/. Following the completion of the call, a recorded replay of the webcast will be available on Cardlytics’ website.

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 grocery industry is undoubtedly a bellwether for the impact of the cost-of-living crisis on consumers. While costs are rising in many places, the price of everyday basket essentials remains a proxy for inflation. 

That puts grocers at the epicentre of the debate when it comes to how and whether they should be looking after their customers in such challenging times. 

Every grocer is battling rising operational costs, from the increasing energy cost of keeping freezers and fridges cold through to the price of fuel for home deliveries. How can brands still support their customer base through tough times, while still protecting their bottom line? 

Invest in essentials to support tighter budgets

Cardlytics spend data across 24 million UK bank accounts shows that since 2020 the average cost of the weekly shop has increased by 20%. The rising pressures of inflation, supply chain issues and labour shortages are all forcing the price of everyday essentials up. 

A recent Cardlytics poll of 2000 UK adults found that almost nine in ten (88%) consumers have seen a rise in their weekly shop. As wages stagnate, and bills look to skyrocket, they’ll be searching for any way possible to save a little extra cash.

Use loyalty schemes to engage customers

One option is to increase investment in the basics. Asda’s launch of a new essentials range is one example of how a brand is stepping up and keeping the price of essentials low.

But with cost now becoming a clear deciding factor in where to spend, consumers are increasingly shopping around to save the pennies. Our spend data shows that in the past year, total spend at the big four supermarkets fell 7% and spend at convenience stores fell 8%, whilst discount supermarkets managed to uphold their market share in an increasingly competitive industry.

A new basics range might help at one end of the spectrum, but if consumers are then shopping elsewhere to fill the rest of their basket, how much is it really helping?

With over 56% of consumers saying they’re looking to shop with cheaper brands to save money, grocers should consider how they can make customer loyalty the priority. Investing in loyalty programmes that help customers save money on their shop – be it offers on the items people buy most or rewards each time they shop – will go some way to help grocers hold on to their customers and attract new ones.

Cardlytics is able to provide brands with a ‘whole wallet’ view, to understand what share of a customer’s category spend they’re receiving and how much headroom a customer has to make sure they’re targeting the most relevant and valuable customers.

Invest in price, play the long game

Every grocery retailer faces an ongoing battle to support their customers, however, as the cost-of-living ramps up, it’s crucial that additional costs aren’t passed on to the consumers. Otherwise, brands risk losing their loyal customer base and may struggle to defend their market share – especially in the run up to the all-important ‘Golden Quarter’. 

By investing in price now to support customers when budgets are tight, grocers can win longer-term brand loyalty for helping customers when they needed it the most.  

Those brands that step up to support customers now, will reap the rewards in the long term. 

With the growing concern around inflation, recession, and the rising costs of digital ad prices, many marketers are challenged to stretch their budgets and shift marketing dollars to where they elicit the most value. 

Cardlytics joined forces with Nielson and Digiday to discuss how marketers can use campaign metrics experimentation to refine their strategies and achieve measurement confidence.

Watch the recording of the webinar and see Trevor Wooden, VP of Analytics at Cardlytics and Tsvetan Tsvetkov, SVP of Nielsen Outcomes at Nielsen discuss how marketers can best prove marketing impact while navigating numerous economic uncertainties.

https://youtu.be/tqVC79Vwg_Y

The travel industry has faced an uphill battle over the past few years. Covid-19, cancellations, labour shortages and rising operating costs have all beset the industry with issues. 

Many punters have in turn forgone their normal holidays abroad or ditched the business travel, swapping flights to Portugal for trains to Cornwall and face-to-face meetings for Zoom calls.  

It was therefore unsurprising that as restrictions lifted, travel spend skyrocketed as consumers made up for lost time, splashing the cash to make their next trip better than ever. 

Cardlytics spend data across 24 million UK bank accounts shows that travel brands across the sector have seen spend increase in the past year. Total spend on airlines grew 542% between 2021 and 2022 whilst package holiday’s (496%), holiday rentals (222%) and even UK retreats (111%) saw significant rises in the same period. 

However, headwinds loom. The industry is facing unprecedented staff shortages, while a cost-of-living crisis is likely to put a squeeze on the amount consumers are willing to spend on their holidays. 

Looking to the next 6 months, how can travel brands win back customer loyalty as we head towards the winter travel and January holiday booking season?

Invest in certainty

Overall spend on package holidays has increased by 171% in the past six months compared to prior same period, pointing to the fact that consumers are increasingly opting for package deals that offer more protection and support when things go wrong.  

Investing in certainty will go a long way in helping to rebuild trust and get consumers booking their trips again, whether it is offering extra protection on holidays or the choice for free cancellation, giving consumers choice and backup options will help to incentivise bookings. 

Focus on affordable getaways

Despite the post-Covid boom in bookings, the cost-of-living crisis will tighten purse strings and as consumers cut-back on non-essential spending, luxuries like holidays could be one of the first things to go. Recent Cardlytics consumer polling of 2000 UK adults shows that two in five (42%) consumers are already planning to reduce the number of holidays they take this year.

As travel brands struggle themselves with increased operational costs and inflation, prices are only set to rise. The average spend per purchase across the travel sector has already seen an increase of 26% in the past 6 months compared to the previous 6 months.

With prices increasing, consumers are likely to opt for shorter mini-breaks and more affordable destinations. For brands, this is an opportunity to offer more flexible and value driven options that suit peoples’ needs now but help to retain customers in the long term.

Reward customers and build loyalty

Disposable income is continuing to decline, leading to more consumers turning to loyalty programmes and discounts to save. Our consumer research showed that 59% of consumers are reacting by utilising discounts, rewards, and offers by searching for more discount codes online before they make a purchase.

Travel brands need to seize this opportunity to offer tailored incentives to help their customers save money but also build loyalty and ensure they keep coming back. The travel industry is renowned for its loyalty programmes, now is the time to take them up a notch. 

List with price comparison sites to increase exposure

Consumers aren’t just looking to discount codes to save their spending. Cardlytics consumer polling showed that 73% of consumers plan to shop around more this year for the best deals whilst 58% intend to use price comparison sites more. 

Brands need to tap into this savvy customer base by featuring on price comparison sites. This not only increases visibility and exposure but also makes it easier for customers to find a brand’s deals.

There are infinite ways to measure the success of a marketing campaign. Still, one of the marketers' top challenges comes when it's time to quantify campaign success in terms of actual revenue dollars. Making the leap between marketing metrics and business outcomes often requires collecting data from multiple platforms, connecting the dots, and filling in the blanks. 

Traditional marketing performance metrics simply aren't the most accurate for measuring business success, but newer platforms and tools enable a better alternative — incrementality marketing. Incrementality takes a different approach to metrics like attribution, lift, and ROI, which means learning new strategies and measurement plans.

What is incrementality marketing, and why is it important?

Incrementality is a way to measure the impact a certain marketing activity has on a desired business outcome. Incrementality helps marketers discern what portion of success can be attributed to campaign efforts versus which results would have occurred organically without a specific marketing interaction or touchpoint.

Collecting and using third-party data for marketing campaign targeting and optimization is increasingly difficult and costly. Privacy and tracking regulations will only become stricter in the coming months and years. With the shift toward first-party data and tracking comes the need for new tools and methodologies.

In a Cardlytics study, we discovered a major disconnect between the outcomes businesses deem important and the effectiveness of current marketing initiatives at achieving those outcomes. For example:

• 72% of retail executives said "gaining competitive market share" is one of their top three priorities from performance marketing investments.
• But 61% said current performance marketing initiatives are ineffective in terms of helping them gain a competitive market share.

Clearly, retailers are hungry for initiatives that actually drive results. The ineffectiveness of current approaches necessitates a shift to methodically shape marketing strategies and measure campaign success.

Strategies for incrementality

Incrementality marketing may seem complex, but that's mainly because it has historically been difficult to measure. There is good news, though. The shift from third-party data makes incrementality more important and easier to implement. With privacy regulations shielding customer data from marketers, incrementality measurement and first-party data will soon reign supreme.

In the past, many online marketing tools and platforms simply didn't collect the data needed to measure incrementality with confidence. This meant marketers relied on metrics like ad views and click-through rates to make assumptions about campaign performance. Now, the latest customer data platforms (CDPs) move beyond these traditional KPIs and dial into exactly which digital efforts have an impact on sales — all while providing a more seamless experience for marketers and consumers alike.

In addition to having the right tools in place to prioritize incrementality marketing and measurement, marketers need a mindset shift to understand which of their efforts truly moves the needle.

Moving from engagement to growth as KPI

Increasing user engagement is a common goal for performance marketing campaigns. Common customer engagement KPIs include:

• Email open rates and click-through rates
• Ad clicks
• Social media engagement
• Session duration

Brands want to drive customer engagement because of the assumption that engaged customers will spend more money, shop more frequently, and make recommendations to friends. These assumptions may be true, but they're difficult to prove with hard data — especially because most engagement campaigns rely on third-party data for audience targeting and tracking.

To make the shift to an incrementality mindset, move away from engagement-focused KPIs and focus on growth-focused KPIs. Growth KPIs include things like:

• Customer lifetime value (CLV)
• Incremental revenue
• Competitive market share
• Category wallet share

These KPIs provide a better picture of campaign success — as long as you can accurately attribute outcomes to specific marketing efforts. This ties back to the importance of first-party data. Clicks, views, and other engagement metrics will never be as precise as growth metrics measured with data from first-party sources such as customer transactions.

Focus on gaining competitive market share

One of the key growth-based KPIs marketers should focus on as they shift to an incrementality mindset is competitive market share. As with other incrementality measurement methods, quantifying competitive market share can seem like a tall order — especially if your current platforms and tools are limited in terms of targeting and other performance measurement capabilities.

If this challenge sounds familiar, you're in good company. For example, 76% of advertisers do not currently have the capabilities to define an audience or develop a campaign targeting high-spending shoppers in their category who have not spent with them for a defined timeframe.

This may seem like an extremely specific segment to target. Still, this level of specificity is within the realm of possibility when you prioritize marketing tools that combine strategic first-party customer data and robust in-platform intelligence.

Adopt an omnichannel approach

If you're an omnichannel advertiser, do your performance marketing and measurement efforts reflect that? Chances are, there is some disconnect between your online and in-store campaign measurement. Our study found that 84% of marketing executives cannot tie in-store purchase data directly to performance marketing campaigns.

Historically, it has been difficult — even impossible — for marketers to connect online marketing efforts to in-store sales accurately. Strategies such as buy online, pick up in-store (BOPIS) help bridge the gap between eCommerce and in-store shopping experiences. However, there's still a disconnect between online and brick-and-mortar attribution. An omnichannel approach to sales and measurement is needed to capture your marketing efforts' impact fully.

How do you measure incrementality?

Measuring incrementality requires comparison and experimentation, typically with split-testing and control groups. As you begin, you'll first need a baseline understanding of expected revenue without any marketing efforts. You may need to pause your marketing efforts for a time to collect accurate data.

Next, pick an audience to segment into a test group and control group, and serve your marketing campaign to the test group only. Comparing the two groups' conversion rates will help you determine the incremental impact of the campaign.

Driving incremental revenue is a major priority for business executives and marketing leaders, but the two groups disagree on exactly how to measure it. There's a further issue — many businesses measuring incremental market share are not satisfied with their methodology.

• 81% of executives say that incremental market share is important
• 69% do not measure it
• Of those that do measure it, 83% are dissatisfied with how they're measuring it

Some of this disconnect arises because most traditional performance marketing metrics are simply inadequate for measuring incrementality. Any brands seeking to learn how to measure incrementality should start with revising their performance evaluation methodologies.

Attribution vs. incrementality

Attribution is the practice by which marketers discern which marketing touchpoints lead customers to a particular action or event. According to our study assessing over 250 business and marketing executives, 86% are currently relying on classic attribution methods, such as:

• Single-touch attribution models assign 100% of the credit for a conversion to one marketing touch point, such as the first or last touch.
• Position-based attribution splits the credit for a sale between the first and last touchpoints — also known as a U-shaped attribution.
• Multi-touch attribution models distribute attribution between various touch points.

The problem with these attribution models is that they can only approximate a digital campaign's impact and can't account for a buyer's full journey. They also don't account for offline touchpoints such as print ads, in-store signage, or promotions.

There is a more robust alternative to these attribution models: closed-loop attribution. Closed-loop attribution is a data-backed way for marketers to know exactly how a specific marketing channel or campaign contributed to sales and revenue. With closed-loop attribution, marketers can connect actual online purchases to specific digital campaigns to gain a clearer picture of the impact of their initiatives.

ROAS vs. iROAS

Another shift marketers need to make on their way to better incrementality measurement and analysis is the move from traditional return on ad spend (ROAS) measurement to incremental return on ad spend (iROAS) calculations. 

Calculating ROAS is straightforward. You simply divide the revenue attributed to your marketing campaign by the cost of that campaign:

Revenue / campaign cost = ROAS

ROAS is a classic way to measure the success of an ad campaign, but it doesn't take incrementality into account. To find your iROAS, the formula is very similar:

Incremental revenue / campaign cost = ROAS

The main difference in the incrementality model is the understanding that only a portion of your campaign revenue can be confidently attributed to your paid marketing efforts and would not occur without your campaign. Realistically, a portion of your campaign revenue would have come through regardless of your paid marketing efforts, and iROAS accounts for that.

Cardlytics is the incremental marketing tool you need

Your incrementality efforts will only be as good as the tools you use to craft and measure your campaigns. Cardlytics helps marketers measure the true impact of their digital campaigns — not just overall sales increases but incremental returns. With access to 179 million bank customers' real transaction data, Cardlytics gives brands a goldmine of first-party data, omnichannel attribution opportunities, and streamlined performance measurement and reporting.

More precise targeting based on first-party data

Third-party data is more expensive to attain and less accurate than first-party data. Also, third-party data is dying. With Cardlytics, campaign targeting is informed not by third-party data but by one out of every two card swipes in the US. 

Cardlytics worked closely with Dunkin' Donuts to identify which customers were most likely to be repeat customers based on first-party data — specifically, past purchase behavior with Dunkin' and its competitors. Cardlytics targeted this "likely to return" customer segment with cash-back offers via their online banking platforms, giving them an incentive to buy themselves a treat at Dunkin'. This campaign would not have been possible if Dunkin' had only relied on third-party data.

More accurate omnichannel attribution

What typically happens when someone sees an ad for a retailer online but then purchases in the brick-and-mortar store? There has historically been no way for that purchase to be accurately tracked and attributed to the online touchpoint. Cardlytics changes that. 

Because Cardlytics campaigns are based on bank transaction data, it doesn't matter where those transactions occur. Every time a customer swipes their card, there's a new data point Cardlytics can use for campaign targeting and reporting.

Straightforward performance measurement

Cardlytics eliminates the need for data interpretation, estimation, and assumptions. Our data comes from real purchases made by real people. Our campaign reports are based on real transaction data from people who saw ads on our digital ad platform. It's all first-party data, and it's easy to see results. When you launch a campaign with Cardlytics, we'll be able to report on growth-based KPIs such as:

• Long-term customer value
• Incremental return on ad spend
• Impact on overall market share 

With Cardlytics, retailers become market leaders well-positioned for omnichannel success.

Taking the next step with Cardlytics

It's hard to imagine marketing without third-party data and traditional KPIs, but the marketing landscape is changing whether we like it or not. Retailers must embrace incrementality and first-party data to remain competitive in the coming years. Learn more about marketing solutions and campaign measurement from Cardlytics, and contact us for more information.

The past year has seen consumers making up for lost time when it comes to eating out, with the industry experiencing a boom as pubs and restaurants reopened. 

Cardlytics spend data across 24 million UK bank accounts showed that overall spend across the dining sector increased 22% between 2021 and 2022 as people looked to make the most of socialising post-covid. Pubs and bars saw the largest spend increase of 12031% followed by casual dining restaurants (748%), coffee shops (63%) and quick service restaurants (40%).

Despite this general uptick in eating out over the past year, total spend across the sector is still down when compared to pre-pandemic levels. 

In comparison to 2020, Cardlytics data shows that spend in 2022 is still down across casual dining (-15%), pubs and bars (-7%), coffee shops (-5%) and quick service restaurants (-2%). 

As the cost-of-living reaches a crunch point and disposable income shrinks, hospitality is often the first in the firing line. Consumers will be making difficult choices to cut back their spending, meaning brands may face further hurdles in returning to pre-pandemic spend levels. 

Competition for customers is reaching a peak, and as consumers look to prioritise essentials like grocery shopping and energy bills over a meal or drink out, how can dining brands hold their market share? 

Invest in delivery options

Between 2020 and 2021, lockdowns drove an astronomic rise in spend across delivery platforms as customers had to experience their favourite foods from the comfort of home. Cardlytics spend data shows that delivery platforms saw a 110% rise in spend between 2020 and 2021. 

However, as restrictions lifted and customers sought to eat out rather than order in, these brands struggled to live up to their lockdown success leading to a spending decline of 5% between 2021 and 2022.

But the tide is changing. With increasing numbers of customers looking to cut back spending on more ‘expensive’ meals out but still wanting to treat themselves to a ‘cheaper’ takeaway at home. 

Casual dining is already starting to see the impact of the cost-of-living and tighter budgets with Cardlytics spend data showing that total spend fell 2% in the past 6 months compared to the previous 6 months. 

Investing in delivery options will stand dining brands in good stead to capitalise on this shift, as prices creep up and consumers cut back on trips out.

Diversify your offer with cheaper, smaller items

During times of financial difficulty, consumers still want ways to treat themselves but with smaller, less extravagant items. This means people are more likely to turn to coffees and snacks rather than a full three-course meal. 

Brands should look to diversify their offer with smaller items or options, whether that be a lunchtime deal, a discounted menu or takeaway options at reduced prices. This will help to keep customers returning in the short term and show that the brand understands and can meet their new needs. 

Invest in loyalty 

As the cost of living continues to rise, we’re likely to see people shop and spend in savvier ways. Our recent consumer poll of 2000 UK adults shows that 73% of consumers are planning to shop around more for the best deals. We’re already seeing the tangible impact of this at Cardlytics with the number of dining offers activated through banking app reward programmes having grown by a staggering 784% between 2021 and 2022. 

If dining brands want to retain customers in this difficult time, they need to tap into the deal-savvy customer base by offering tailored cashback and discounts to customers to engender more loyalty and spending. 

By utilising banking channels, brands can target customers by frequency and segment and firmly establish themselves as a favourite and the go to option for a treat during these difficult times.

As marketers, we all face the same question – How do we know that sale wouldn’t have happened anyway? There is always a need to prove marketing efforts accomplished something that would not have happened organically.

That is where we can lean on incrementality.

In our latest webinar, Juliana Lupinacci, VP, Agency Partnerships, speaks with leaders in the agency space, Matt Wool, CEO at Acceleration Partners and Kristen Pulver, VP, Affiliate Marketing at Horizon Media, about how advertisers can drive meaningful incremental revenue results through incrementality and how Cardlytics can help!

https://youtu.be/VLRC697oBUg

Finding and connecting with your target audience can be complicated in today's digital landscape. There are nearly unlimited options regarding the various channels and platforms consumers use to view content, interact with brands, and make purchases. At the same time, changes to internet privacy protocols are making digital marketing trickier than ever.

With consumers' attention split in so many ways, single-channel marketing is no longer a sensible option. You'll need a multichannel or omnichannel marketing strategy to reach your audience where they're at.

What is multichannel marketing?

Multichannel marketing is the practice of promoting products and services and engaging with customers across multiple marketing channels. With multichannel marketing, businesses may use different strategies and campaigns depending on the channel. Common marketing channels include:

• Social media
• Website
• Email
• Radio
• TV
• Digital ads
• Paid search
• Print materials
• In-store ads

What is omnichannel marketing?

Omnichannel marketing helps businesses promote their products and services across various channels, providing customers with a seamless brand experience with many touchpoints. With omnichannel marketing, businesses implement one strategy or campaign across all channels, creating a more cohesive experience. 

This marketing approach is designed to give customers consistent, regular exposure to your brand, building customer relationships, brand authority, and sales.

Three key differences between omnichannel and multichannel marketing

At first glance, multichannel and omnichannel marketing seem very similar. In fact, some marketers use these terms interchangeably. While both approaches rely on promoting across various marketing channels, the approaches are very different. Here's a list of several differences between omnichannel and multichannel marketing:

1. Irregular vs consistent strategy

Multichannel marketing handles channels separately when it comes to strategy. A business may use several channels in its marketing efforts, but each channel has its own strategy. Without an overarching strategy, campaigns and messaging across different channels can vary significantly. 

On the other hand, omnichannel marketing aims for consistency and a comprehensive strategy to be implemented across all channels. While the content and messaging may still vary slightly, there's an overall strategy tying everything together.

2. Siloed vs integrated distribution

In addition to the irregular strategy, multichannel marketing content distribution tends to be siloed. Different departments may handle different parts of distribution, which leads to a feeling of disconnection across channels. While a customer may encounter promotional material through multiple channels, it doesn't feel cohesive or connected.

By contrast, omnichannel marketing intentionally provides an integrated, holistic experience across all channels and platforms. The omnichannel approach creates a more seamless customer journey.

3. Broad vs personalized experience

With multichannel marketing, the goal is often to reach as many customers as possible through as many channels as possible. Many businesses prioritize quantity over quality with this approach, and results suffer when the net is cast too wide.

Omnichannel marketing isn't focused as much on the volume of customers engaged. Instead, it focuses on the quality of the customer experience. A solid omnichannel strategy builds trust, loyalty, and brand authority among target audiences, leading to increased sales and better retention rates.

Benefits of omnichannel marketing

Although omnichannel marketing requires more research and strategic planning investment, the value outweighs the effort. With a well-prepared omnichannel strategy, you'll see results beyond what's possible with multichannel marketing. The top benefits of omnichannel marketing include:

Cohesive brand strategy and identity

Omnichannel marketing strategies help you build a stronger brand. To create an omnichannel strategy, you'll need to make intentional decisions about your brand's tone and messaging across all channels.

A stronger identity will make your brand more memorable, and a cohesive brand strategy will make it easier to create comprehensive campaigns.

Improved customer experience

Unlike multichannel marketing, omnichannel efforts are focused on the customer, not the channel. An omnichannel approach helps create a seamless customer journey with consistent messaging and convenient touchpoints. Omnichannel marketing meets customers where they are — in both online and offline spaces — and makes it easy to complete purchases without friction.

Increased traffic and sales

When you create a more cohesive brand and improve the customer experience, you'll see results — an increase in traffic, repeat customers, and sales. Brands must meet customers where they're at, and in today's marketplace, that's everywhere. Omnichannel strategies are the way of the future. 

Many best-in-class brands have seen great success when implementing omnichannel marketing strategies. Solutions like Cardlytics Purchase Intelligence™ support omnichannel efforts by helping brands understand exactly where and when customers are making purchases. With these insights, brands can implement precise audience targeting and create promotional offers designed specifically for the customers most likely to convert.

Improve your omnichannel marketing efforts with Cardlytics

Multichannel marketing reaches customers through various channels, but omnichannel marketing takes that concept to the next level. With an omnichannel marketing strategy, you'll build a more cohesive brand, improve customer experience, and see tangible results.

Cardlytics offers unmatched support for your omnichannel efforts. With our access to real customer transaction data, we provide insights that shape actionable marketing strategies — all while protecting consumers' private, personal information. Contact us today to learn more about how Cardlytics can boost your omnichannel strategy.

Consumers are increasingly embracing the omnichannel shopping experience, and many retailers have risen to the challenge. Omnichannel retailing helps brands reach customers in new and creative ways, which can pay off in big ways in today's competitive digital marketplace.

So what are effective omnichannel retailers doing to leverage their online presence and capture customers' attention? It starts with channel integration.

What is omnichannel retailing?

Omnichannel retailing is a marketing approach wherein retail brands connect with customers via various channels and platforms. While it has similarities to multichannel marketing, omnichannel retail strategy differs by connecting cross-channel efforts with an overarching strategy.

Potential channels in an omnichannel retail strategy include:

• In-store experience, messaging, and signage
• Brand website
• Mobile app
• Social media profiles
• Traditional channels, such as TV, radio, and print

Omnichannel strategies provide a seamless, integrated experience across all channels. In the modern marketplace, customer expectations are high, and competition is fierce, so brands should take advantage of all available channels and platforms to deliver an exceptional customer experience.

Let's look at some tips to help retailers get a leg up with their omnichannel efforts.

Three tips for omnichannel retailing

Get to know your customer

Every omnichannel retail strategy should start with the customer. If you already have customer profiles or personas in your marketing efforts and ad targeting, that's a great place to start. If not, you need to spend time creating your ideal customer personas. Identify basic demographic information like age, gender, location, and income, but don't stop there. Answer these questions to get to know your ideal customer on a whole new level:

• Where do they shop?
• What channel do they shop through — online, in-app, in-store, or a combination?
• How much do they typically spend on orders?
• Do they have seasonal spending trends?

You can get this information through customer surveys or through a solution that provides real bank transaction data from real shoppers, like Cardlytics. No matter which method you use to collect this information, these data-based insights are essential as you grow your omnichannel retailing efforts.

Make all channels shoppable

There was a period in history when a "shopping channel" was a TV network where you could watch product presentations and order items over the phone. Now, a retail shopping channel is any means by which consumers can purchase goods or services. And to succeed as an omnichannel retailer, brands need to take advantage of every channel to sell. This includes:

• Brick and mortar storefront(s)
• Website
• Mobile app
• Social media platforms

You may be using most of these channels already, but if customers can't make purchases through them, you're missing out on sales. Build ecommerce into your website and app, and implement shoppable social media posts and ads on Facebook, Instagram, and Pinterest.

Create cross-channel touchpoints

To take your omnichannel retail strategy to the next level, create a variety of cross-channel touchpoints. The more you can offer a combined offline and in-store experience, the more seamless your customer experience. Curbside pickup, also known as buy online, pickup in-store (BOPIS) is a great example of a cross-channel touchpoint. Other ideas include:

• Real-time inventory updates online for in-store stock
• In-store signage with social media tie-ins
• A mobile app customer loyalty program that can be used both online and in-store
• Digital gift cards and coupons for in-store use

Cross-channel touchpoints create an integrated experience for customers, and they also create a sense of personalization.

Benefits of being an omnichannel retailer

Omnichannel retailing sounds exciting, but is it worth the effort? Here are several of the benefits of implementing an omnichannel retail strategy.

Competitive advantage

Even if you aren't an omnichannel retailer, your customers are omnichannel shoppers. Many customers use more than one channel during a single transaction. If you offer a convenient and compelling omnichannel experience, you'll gain a competitive edge over brands that haven't caught up.

Better results

Omnichannel retailing offers more opportunities for customers to buy from you, which naturally leads to more sales. Other results brands see when they go omnichannel include:

• Increased operational efficiency
• Increased customer retention
• Overall better customer satisfaction

Better customer experience

In addition to the benefits for business, omnichannel retailing leads to many benefits for shoppers. Omnichannel efforts give customers more purchasing options, more brand engagement, and more overall convenience. The positive customer experience makes consumers more likely to repeatedly shop with you and recommend your brand to friends and family.

Better data

With omnichannel retailing, you gain access to more data than ever before. This cross-channel data helps you refine and optimize your strategy, leading to even better results.

Use Cardlytics to launch your brand into the future of omnichannel retailing

With the right tools and solutions in place, your omnichannel efforts can transform your business. Cardlytics supports omnichannel retailers with powerful insights based on real customer transaction data. Cardlytics Purchase Intelligence™ can help you get to know your ideal customer and craft customizable, cross-channel offers for those most likely to buy. Learn more about Cardlytics today.