The Private Label Debit-Loyalty Connection

Combining convenience with purchase lift

After more than 10 years of quiet growth, private label debit is now a payment method that’s making noise among merchants looking for ways to drive sales and grow business through consumer loyalty.

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How private label debit drives sales

Today’s consumers demand convenience. They want more from a brand than low prices or weekly specials: they want a brand that makes them feel good about shopping. And while understanding what makes them feel good can be as complex as people themselves, there’s a common element to consumers’ feelings about brands they love that private label debit helps to create.

Popular brands like Starbucks and Cumberland Farms have learned how to make payment part of a personally gratifying shopping experience. In fact, payment is the gateway to their program. It’s necessary for participation, but is so seamless that consumers don’t hesitate to opt in, regardless of the commitment level and trust required.

When payment functions out of sight, through private label debit (via a mobile app or card) smoothly and seamlessly incorporated into a loyalty program, it becomes integral to the consumer experience and part of what they appreciate about the brand.  

Because the shopping experience is simple, straightforward and rewarding, it’s also enjoyable. Consumers choose to frequent the brand, becoming loyal customers who shop more often and spend more each visit, even when prices are higher or other stores are more conveniently located. The elusive personal connection has been created, as has the customer’s loyalty.

What, exactly, is private label debit?

Private label debit refers to a branded card or mobile app that directly debits payments from consumers’ bank accounts using PIN-protected and fully encrypted consumer data.
The most cost efficient payment method available, private label debit employs only a flat, per-transaction fee structure. This creates discretionary margin that can be utilized to drive consumer engagement, giving retailers the ability to monetize incentives and to offer rewards that drive loyalty.

Rewards programs associated with private label debit encourage customers to sign up for merchants’ programs. Once signed on, consumers continue to use these programs, resulting in increased sales and business growth.

Most importantly, private label debit payment is key to the convenient and satisfying shopping experiences that consumers want and have come to expect from brands that inspire their loyalty.

Private label debit and purchase lift

Private label debit is unique in that it provides merchants with opportunities to create customized programs that reward consumers according to their own purchasing preferences.
By collecting data on the shopping habits of various customer segments, merchants can provide personalized, meaningful and targeted rewards that surprise and delight individual customers. These rewards naturally increase consumer adoption and usage of loyalty programs translating in to incremental sales, or purchase lift.

Loyal consumers spend more, more often

ZipLine’s own Purchase Lift Model Study proves that loyalty programs attached to private label debit cards and mobile apps can transform average customers into super users.
The study demonstrates that consumers who join one of ZipLine’s payment programs show an overall 35% lift in transactions, whether or not there is a loyalty program in place. Among customers who join a private label debit loyalty program, a remarkable 83% become active users. Most telling of all, the most dedicated participants show an extraordinary 135% increase in purchasing.

Bringing loyalty within reach

More merchants are discovering and embracing the benefits of private label debit. This low-risk payment option gives consumers the convenience and security they demand, while providing merchants with unprecedented opportunities to leverage rewards to create long-lasting customer connections.

Private label debit gives merchants the power to drive and capture customer loyalty, that seemingly elusive gold ring of retail, to transcend individual purchases and promote long-term business growth.

To learn more about the effect of private label debit and reward programs on consumer purchasing behavior, download ZipLine’s latest white paper.

This post is sponsored by ZipLine


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