‘Independent’ Loyalty Programs: Positioning and Business Models
Peter Krasilovsky, 8/9/2012
EXECUTIVE SUMMARY:
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.