According to a new report by BIA/Kelsey, 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. The report titled, “The New Marketplaces: Loyalty & Transaction Marketing,” offers an in-depth look at the loyalty and transaction marketing space, including an examination of:
- The investment in the loyalty and transaction marketing sector since 2008
- New revenue streams from transaction marketing
- The role of big data, card linking and point of sale (POS) integration and alternatives
- Privacy and pipeline issues
- The competitive landscape, including a look at key players across primary sector segments, including deals companies, independent loyalty and transaction marketing companies, financial institutions, vertically integrated tech companies, and media companies
“Local marketers are making room for loyalty and transaction marketing alongside their traditional focus on advertising,” said report author Peter Krasilovsky, vice president and senior analyst, BIA/Kelsey. “Loyalty and rewards programs, deals, coupons, gift cards and gift certificates are playing major roles in this shift. Together, they’ll increasingly gain parity with paid media advertising, such as display ads and contextual search ads.”
Key themes from the report will be examined at BIA/Kelsey’s upcoming conference, Leading in Local: The National Impact, which takes place March 18-20, in Boston. Sessions that will cover loyalty and transaction marketing include:
- “Local Commerce: The Shift to Offers, Loyalty, CRM and Analytics,” with panelists Tom Beecher, President and CEO, Cartera Commerce; Angus Davis, Founder and CEO, Swipely; and Dom Morea, SVP, First Data
- Keynote speaker Vikram Sharma, President and CEO, Gannett Digital Marketing Services, will talk about how Gannett has reoriented its strategy, from a focus on national retailer and brand strategy, to now include loyalty and deals that incorporate local SMBs, including development of Deal Chicken and acquisitions of KeyRing and BLinQ.
- LivingSocial SVP of National Sales Mitch Spolan will discuss “Cross-Channel Localization Opportunities” with a panel of industry leaders, including Court Cunningham, CEO, Yodle; Michael Page, VP, Revenue Services & Analytics, Cars.com; and Greg Stuart, CEO, Mobile Marketing Association
- “Adding ‘Performance’ to Local Promotions,” featuring Patrick Dillon, President and Cofounder, Deal Current, will examine the impact hyperlocal content, personalization and performance models are having on coupons, deals and ecommerce
- “SuperForum: National Brands, Local Channels” features a discussion by BIA/Kelsey analysts of core local channels, including deals and loyalty programs
About ‘The New Marketplaces: Loyalty & Transaction Marketing’
The 30-plus-page report is a useful resource for anyone focused on the trends and directions of loyalty and transaction marketing. It features 18 charts and figures, including data from BIA/Kelsey’s Deals Forecast and Local Commerce Monitor study. Among the trends highlighted is the finding that customer loyalty programs are gaining traction with merchants. Half of U.S. small and medium-sized businesses (SMBs) surveyed in BIA/Kelsey’s 2012 Local Commerce Monitor study indicated they are likely to run a deal during the next six months.
The report, which is published for BIA/Kelsey’s advisory clients, is also available for purchase ($995 for the report only, or $1,495 for the report plus a one-hour custom analyst briefing). More information about the report and how to purchase it is available at http://www.biakelsey.com/LoyaltyandTransactionMarketingReport.asp.
About LEADING IN LOCAL: The National Impact
LEADING IN LOCAL attracts a global audience of executive-level decision makers from across the local media landscape, including companies engaged in local search, deals and group buying services, location-based services, local social media, traditional local media, classifieds and vertical media, advertising and marketing agencies, local digital media suppliers, local advertisers, national brands targeting locally and sector-focused investors and financial analysts.
Event sponsors include Acxiom, Avantar, eLocal Listing, First Data, Infogroup, Kenshoo Local, Media Distribution Solutions, Neustar Localeze, ResponseTap, Telmetrics, Universal Business Listing, vSplash, Websplanet, Yext and YP. Association and media partners include the Location Based Marketing Association (LBMA), Topseos, and Visibility Magazine. For more information about LEADING IN LOCAL, including the complete agenda, list of speakers and companies attending, visithttp://www.biakelsey.com/LeadingInLocalBoston.
BIA/Kelsey advises companies in the local media space through consulting and valuation services, research, Continuous Advisory Services and conferences. Since 1983, BIA/Kelsey has been a resource to the media, mobile advertising, telecommunications, Yellow Pages and electronic directory markets, as well as to government agencies, law firms and investment companies looking to understand trends and revenue drivers. BIA/Kelsey’s annual conferences draw executives from across industries seeking expert guidance on how companies are finding innovative ways to grow. Additional information is available at http://www.biakelsey.com, on the company’s Local Media Watch blog, Twitter(http://twitter.com/BIAKelsey) and Facebook (http://www.facebook.com/biakelsey).