Leading in Local - ‘The New Marketplaces’: Loyalty & Transaction Marketing
Peter Krasilovsky, 1/3/2013
This BIA/Kelsey foundation paper examines the emerging loyalty and transaction marketing solutions sector. Interest in loyalty and transaction marketing solutions is demonstrably high. We expect there to be increasingly apparent, direct competition between deals and loyalty vendors in certain key categories, such as restaurants and salons.
Investors have poured more than $222 million into the loyalty and transaction marketing space since 2008, with expectations for significant revenue growth from merchant services, loyalty incentives, commissions, transaction processing and other areas.
In this environment, transaction marketing and related "non-advertising" promotional solutions, including deals, coupons, gift cards and gift certificates, are likely to achieve parity with paid media advertising, such as display ads and contextual search ads.
We answer five key questions in this foundation paper:
Will non-advertising solutions be a major factor in merchant marketing planning and spending?
Will non-advertising solutions be money saving substitutes for traditional advertising, or will they complement it?
What channels are best positioned to anchor these new solutions?
What will be the impact of technology changes on the rate of acceptance?
Are non-advertising programs effective for local merchants and how will they assess return on investment?