‘Independent’ Loyalty Programs: Positioning and Business Models
Peter Krasilovsky, 8/9/2012
This report is about the Independent SMB loyalty and rewards marketplace that is "card linked."
- Card-linked SMB loyalty and rewards players begin where deals players such as Groupon leave off. They add "big data" elements for targeting users and bringing in new and repeat business.
- Card-linked players can be grouped into three categories: independent "pure plays"; financial institution affiliates; and divisions of vertically integrated technology companies.
- While this space is still very new, more than 10,000 local merchants are currently enrolled in "independent" card-linked loyalty programs, paying more than $405,000 a month in fees.
- Independents enjoy first-mover advantages against competitors coming in from other segments.
- The success of the independent players initially depends as much on successful merchant outreach as on technology.
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