TSYS and Truaxis, a MasterCard company, are partnering to make transaction- and behavior-specific marketing offers to payment card issuers that will incorporate loyalty, incentives, cardholder spending patterns and cardholder behavior.
TSYS is already working with several financial institutions on the program, dubbed Partnership Marketing, while Truaxis has a growing merchant network.
A recent Aite Group study found that 45 percent of consumers are interested in receiving daily deal offers from their primary financial institution. Aite also estimates that by 2015 more than 460 million U.S. cardholders will subscribe to merchant-funded incentive programs.
The program’s daily deals will differ significantly from those that are offered through Groupon and other sites that have been questioned for their ability to drive customer loyalty.
“Offers are targeted based on individual preferences and relevant spending patterns and are offered through the issuers delivery channel directly to the cardholders who are most likely to benefit,” a TSYS spokesperson told Loyalty 360. “This more self-selected approach is more likely to drive loyalty and repeat business than random offers for bargain hunting consumers.”
“TSYS has the ability to work with any partner to offer our clients a variety of innovative solutions that add increased value to their cardholders,” said Paul Bridgewater, TSYS group executive of global product, upon announcing the partnership. “Using data analysis to introduce relevant offers based on behavior is an incredibly active space for us, and we are excited about the prospects.”
“The customer participation and enhanced targeting method increases likelihood of use, and deepens the value of the issuer's delivery channel,” the TSYS spokesperson added. “Cardholders will now be driven to sign-on to their financial institution's online banking to see relevant offers that are simple and easy to redeem. We expect the relevancy and positive experience of these offers to build loyalty. Merchants can track results and target/evaluate success themselves and past Truaxis experience supports driving return on investment.”
Further evolution of the partnership offering is expected.
“TSYS will continue to innovate in this space and work with Truaxis and other development partners to expand our solutions across the mobile arena,” the TSYS spokesperson said. “We offer solutions in payments, communications and commerce and are committed to delivering increased value to TSYS clients and consumers.”
“Partnership Marketing enables an ecosystem where cardholders get tailored rewards, offers and personalized bill analysis; merchants get cost-effective, customizable and measurable marketing capabilities; and TSYS clients gain access to new revenue opportunities and increased customer engagement and loyalty,” said Schwark Satyavolu, co-founder and chief executive officer of Truaxis, in a prepared statement. “We look forward to working with TSYS to offer these benefits now and to grow this solution further in the coming year.”