Category: Data & Measurement

How QSRs Can Adapt to Survive a Recession

Posted on by Drop

The Great Recession posed challenges for many industries including Quick-Serve Restaurants (QSRs) as consumer confidence and spending declined. However, some QSR chains were able to survive and even thrive by adapting to changing market conditions.

How did QSRs survive the Great Recession?

QSR chains like McDonald’s and Chipotle adapted to the changing market conditions to survive the economic downturn. McDonald’s saw an increase in sales due to its affordable menu options and value promotions. Meanwhile, Chipotle’s focus on healthy and fresh food options helped them to fare relatively well.

McDonald’s + Chipotle Image

The QSR industry was not immune to the Great Recession, but restaurants that could innovate efficiently were better equipped to survive and even thrive during this period.

Consumer insights from Drop transactional data.

Drop Transactional Data from 2022 and early 2023 reveals that QSR spend has been relatively consistent but started to decline in early 2023, similar to the Great Recession. Fast Casual spend follows a similar trend but being at a higher price point also experienced an earlier drop off in June of 2022. These trends are no surprise as economists are predicting Q1 of 2023 as potentially the beginning of another recession.

QSR Industry Spend April 2022 - February 2023
The Index approach uses the spend of base month (April, 2022) as the benchmark to showcase the changes of spend from each following month in comparison to the base month. This illustrates the trend in a simplistic manner, and enables the comparison of different categories under the same scale. For example, index 1.00 means the spend of a certain month is the same as the spend from April, 2022 and 2.00 means the spend of the certain month doubled the spend from April, 2022. 
Fast Food: McDonalds, Chick-fil-A, Taco Bell, Wendy’s, Subway, KFC, Popeyes, Burger King. 
Fast Casual: Chipotle, Five Guys, Qdoba, Panera Bread.

Despite seeing a decrease in overall QSR spend, the average basket size has been consistent and even increased by approximately $1 for Fast Food restaurants. The marginal increase can be attributed to inflation and brands increasing their prices in the past 6 months. 

The average frequency of purchases for Fast Food has also remained stable, except for a subtle dip in early 2023. This could be attributed to New Year’s resolutions to reduce fast food consumption. For example, the Fast Casual category continues to be very stable as brands like Chipotle are positioned as a healthier option.

QSR Average Basket Size April 2022 - February 2023
QSR Average Purchase Frequency April 2022 - February 2023

What did we learn from our members about the future of the QSR space?

Drop surveyed 1,300 card-linked members and found that 69% said they will spend the same amount on fast food in the next six months. However, 10% of respondents plan to spend more or much more because they are too busy to prepare food at home (40%), it’s convenient (40%) and it tastes good (29%). If QSRs introduce similar initiatives that were leveraged during the Great Recession like value meals, 28% (+18%) of respondents would purchase more fast food.

QSR Purchase Frequency in the Next 6 Months

Despite QSR basket size remaining steady, the decrease in the frequency of purchases is resulting in a decline for overall spend so far in 2023. From the Drop card-linked survey, around 80% of respondents will spend the same amount or more in the coming months on fast food. 

If QSR brands want to capitalize on this sentiment and increase their share of wallet, they should look to the lessons from McDonald’s and Chipotle during the Great Recession. Similar to what was done in 2008-2009, QSRs should prioritize cheap and easy value items, emphasize the savings from coupons only found by downloading the brand’s respective app, and build on loyalty within the industry to maximize profits.

The benefits of Drop card-linked offer programs for QSRs.

With Drop’s Card-Linked Offers solution, QSR brands can offer personalized discounts and rewards to customers based on their spending behavior, leading to increased engagement and higher revenue. By adopting a card-linked offer program, QSRs can benefit from increased customer retention, improved consumer insights, and a competitive advantage in the market.

Ready to maximize profits for your QSR brand? Start driving more sales and building customer loyalty today with Drop’s Card-Linked Offers solution.

How Netflix’s password crackdown could be creating cracks in their armor

Posted on by Drop

Last month we shared some interesting insights and data around Netflix and the video streaming industry. Leveraging our Longitudinal Survey Product that tracks industry trends over time as well as data from our transaction-verified panel, we crowned Netflix as the most popular video streaming service among consumers (check it out here!). Despite recent price increases (January 2023) Netflix continues to be successful because of the quality and diversity of its original content. 

Netflix’s upcoming prevention of password sharing, which began in Q1 2023, is a looming issue for the company. As part of this change, Netflix will ask for an additional fee for friends and family who share an account and are not living with the account holder. Drop conducted further research to understand the consumer sentiment towards this change from Netflix, and the results suggest the ramifications could be costly for the company.

Favorite Streaming Provider Netflix Disney+ Huhu Apple TV+ Peacock Paramount+ Drop Market Research Solutions, Feb. 24, 2023, 2,000 US respondents.

The majority of Netflix users are unhappy with the password-sharing crackdown and are unlikely to pay for additional subscriptions. 

A survey with 2,000 Netflix users recorded 63% as account holders, and 37% sharing an account with family, friends, or roommates. Just over half (51%) of the respondents disagreed with the password-sharing crackdown. This percentage increases to 58% for users who share an account and would obviously be significantly impacted by the change. 

It looks as though Netflix will miss out on a lot of potential subscribers, as 57% of the respondents are unlikely to pay for an additional subscription. The additional asking price is potentially where Netflix needs to adjust as 54% of respondents would only pay $5 or less, and the Netflix pricing looks to be higher than that in most regions. 

Likelihood to Pay for an Additional Subscription Amount Willing to Pay for Additional Account Drop Market Research Solutions, Feb. 24, 2023, 2,000 US respondents.

Nearly half of the Netflix users surveyed would consider canceling their subscription as a result of the password-sharing crackdown, and with lots of strong competition, this is a serious threat to Netflix. 

Of the total respondents, 48% are likely to cancel their Netflix subscription as a result of the password crackdown. This percentage goes up to 63% for those who are currently sharing an account as this group is impacted the most. When asked which streaming providers they would switch to, Hulu had the majority of the vote (68%) and from the previous research, Hulu looks to be one of Netflix’s strongest competitors. These results suggest that the Netflix password crackdown could create opportunities for competitors to fight for more market share. 

Likelihood to Cancel Subscription After Password Crackdown Drop Market Research Solutions, Feb. 24, 2023, 2,000 US respondents.
Which Streaming Provider Would You Switch To? Drop Market Research Solutions, Feb. 24, 2023, 2,000 US respondents.

The negative reaction from Netflix users in response to the password crackdown is also leading to concerns for future subscriber and revenue forecasts. 

Over 80% of the survey respondents believe that the Netflix password crackdown will have an impact on the company’s subscriber numbers. Given that sharing accounts is a common practice among Netflix users, the potential loss of subscribers would no doubt have a major impact on the company’s revenue. It remains to be seen how Netflix will address these concerns and mitigate any potential impact on its business, but it’s clear that the company needs to take steps to reassure users and maintain its subscriber base.

Will Password Crackdown Impact Subscriber Numbers? Drop Market Research Solutions, Feb. 24, 2023, 2,000 US respondents.

So what happens next?

From the findings above, it is safe to say that Netflix users are not happy about the imminent password crackdown. The change is considered unfair, particularly if users are on a tight budget and cannot afford to pay for individual accounts for all family members. As Netflix navigates the next few months, it will be crucial for the company to understand and accommodate subscriber needs and preferences where possible. With more accurate member data, the password crackdown provides a great opportunity for Netflix to effectively invest in more outstanding original content.

Netflix Originals Covers

Will the improved content outweigh the severely negative user sentiment and continue to be the factor that keeps Netflix ahead of the streaming provider pack? That’s the question Drop will look to answer when we next consult our streaming provider Longitudinal Survey and future research projects!


Want to gain a deeper understanding of your industry that can give you a competitive edge? Check out Drop Market Research, and gain valuable insights into your target audience and start making informed business decisions.

Sentiment towards Southwest and airline influential factors in 2023

Posted on by Drop

After a holiday season of increased cancellations and delays in late 2022, Southwest is trying to bolster its brand by promising to make good on inconveniences incurred by customers. CEO, Bob Jordan has pledged to “do better” and as a part of this promise, there are rumors that the company is planning to improve their infamous boarding process. 

Drop surveyed 500+ members to gain consumer insights into the US airline industry:

What is consumer sentiment towards Southwest Airlines and their top competitors? What impact can Southwest Airlines expect by improving their boarding process? Does the boarding process rank in the top factors that influence consumers?

Despite 16,700 flight cancellations and severe delays during the 2022 December holidays, Southwest prevails as the top US airline amongst Drop survey respondents:

Sentiment towards Southwest Airlines. 74% Satisfied with past Southwest experiences 78% Likely to fly Southwest in the future 43% Preferred Southwest to its competitors 15% Difference in preference between Southwest and second-place Delta Drop Insights Solutions, Feb. 3, 2023, 528 US respondents.

The proposed improvement to Southwest’s boarding process would increase the age of children in the ‘Family Boarding Group’ from 6 and under to 13 and under. 

When Drop survey respondents were asked how this change would impact their sentiment towards Southwest the results were not positive, and it would be unwise for Southwest to introduce this rumored ‘improvement’:

Sentiment on the Southwest boarding process. 24% Less likely to fly Southwest with proposed boarding process changes 35% Southwest’s boarding process is better than their competitors 32% Boarding process doesn’t impact which airline they chose Drop Insights Solutions, Feb. 3, 2023, 528 US respondents.

If it ain’t broke don’t fix it, and based on the example above, the boarding process doesn’t look to be a place for impactful wins. There are many other factors that have a much greater impact on which airline consumers are choosing. 

The most important factor is the price which comes as no surprise in the current climate. 


Just under 75% of respondents selected price as having the biggest impact on selecting an airline which was the highest factor by 13%. In order to compete with discounted industry pricing in January, Southwest will have no choice but to also offer low-fee fares despite facing a large cost of up to $825M due to the December holiday cancellations.

Want to gain a deeper understanding of your industry that can give you a competitive edge? Check out Drop Market Research, and gain valuable insights with the help of market research surveys into your target audience and start making informed business decisions.

Positive Sentiment for Netflix remains… but for how long?

Posted on by Drop

Drop’s Longitudinal Market Research Survey product measures customer sentiment of a brand or topic over a longer period of time vs. just providing a snapshot of a particular moment. Longitudinal surveys are particularly impactful when measuring sentiment and sales trends for organizations that are rolling out minor or major customer-facing changes, whether it be to pricing, or to service and product offering.

Considering the multitude of product and pricing changes hitting the market for Netflix, it’s a brand we are watching closely to understand not only the single impact of one change but instead, the overall compounding impact of those changes over time. Below you’ll see the Q4 results but with Netflix cracking down on multi-user accounts, let’s see how some of those realities sit with customers.

Intent to pay is higher than intent to use, both metrics remain relatively stable, for now.

Intent to use Netflix sits below usage but the two are relatively linked, speaking to the overall importance of programming and content in the streaming industry. Most Netflix users intend to continue paying for the service, a potential nod to the fact that customer sentiment remains stable despite price increases and a crackdown on multiple user accounts and anticipated and exclusive content may have something to do with it. 

Netflix-produced content remains a key component of maintaining customer loyalty.

Someone give Netflix’s content team a high-five. Without a doubt, the most popular content drawing attention from Netflix users are Netflix exclusive content series and with phased episode launch dates for the majority of these titles, it has users clinging to their remotes and subscriptions. 

6 of the 8 most popular titles currently on Netflix are Netflix-produced pieces:

Netflix remains the favorite streaming service among viewers.

Based on a recent survey of 638 streaming transaction-verified panelists conducted by Drop, Netflix reigned above the rest. The platform received 60% of the total votes, with its closest rival Disney+ receiving only 14%. A variety of content, successful proprietary content and first-to-market advantage continues to empower Netflix to win. 

Though Disney+ appears to be the second favorite streaming platform, Hulu is the second most popular when it comes to usage. Could this be a first-to-market advantage that is waiting to die out, we’ll see…

The survey results also indicated that Netflix is the most widely used streaming platform among the surveyed panelists, with 84.5% of respondents reporting having an account with the platform. Hulu is the second most popular platform, with 70.4% of respondents having an account. HBO Max, Disney+, and Peacock also have a significant number of users, with 50.2%, 67.2%, and 42.3% of respondents respectively having an account. The least popular among the listed platforms are Apple TV+ with only 26.5% of respondents having an account, and Paramount+ with 36.8% of respondents having an account.

With all this positivity, let’s not forget what might be on the horizon for Netflix: unpopular password sharing limitations, fee increases and series cancellations.

The company’s recent move to limit password sharing in Canada, New Zealand, Portugal, and Spain by asking for an additional fee for friends and family not living with the subscriber is expected to be unpopular but the question is, will it impact the bottom line? This move is part of a crackdown on password sharing globally and is aimed at addressing the issue of 100 million people around the world using shared accounts, which affects the company’s ability to invest in new programming content. The changes have yet to impact U.S. customers but will eventually be rolled out stateside.

3 reasons why we’re bullish on Aritzia

Posted on by Drop

This Vancouver-based brand has been on the rise in Canada in the everyday luxury space. From Kendal Jenner and the iconic Super Puff (pictured below) to the TikTok viral sensation that was the Melina pants, its success is a result of product variety that spans workwear, casual wear, and more. 

More than just its products, the brand is also praised for its shopping experience, including offering communal mirrors to encourage more touchpoints with style advisors and additional services, including their A-OK café in-store, games for customers’ partners to stay entertained and consistency between in-store and ecommerce packaging. 

Sales at Aritzia in the U.S. grew by a staggering 58%.

In the three-month period ending November 27, Aritzia announced that it generated $625 million in net revenue. This surpassed analysts’ predictions by nearly $100 million (Financial Post, 2023). And while their Canadian sales increased 22% in 2022, Aritzia’s sales in the U.S. grew by 58% over the same period and for the first time, more than half of their net sales came from the U.S. (Financial Post, 2023).

With that growth in mind, we looked at the transaction data and turned to our panel to bring you the top 3 reasons why we’re bullish on Aritzia right now.

Reason #1:

64.8% of Drop respondents have never heard of Aritzia, representing an opportunity for tremendous growth.

We surveyed 2,690 American Drop members and found 64.8% had not heard of Aritzia, representing continued growth opportunities to infiltrate the U.S. 

Looking further into the age cohorts, we identified 61.7% of Gen Z respondents were aware of the brand, in contrast to other age groups, where more than half of each respective age cohort were not familiar with the name. Aritzia has been recognized as the “Gen Z brand”, which has supported the brand’s accelerated growth.

Aritzia is aware of this opportunity and their concerted effort to expand in the U.S. will only accelerate growth.

Reason #2:

Aritzia has a “cult-like” following among its consumers.

88.5% of transaction-verified Aritzia customers reported that they plan to shop with them in the near future. 

Aritzia has relied on premium in-store experiences in premium shopping districts to build brand awareness. Through Drop survey responses of transaction-verified respondents, 54.2% first heard of Aritzia by seeing the store in malls or major shopping districts. However, this is not their only form of brand awareness. They also use brand advocates on social media who share must-have articles on clothing and shopping. On TikTok alone, there are over one billion videos under the hashtag Aritzia (Vogue Business, 2022). 

In late 2020 Aritzia began to see accelerated growth in the US. It was at this time that their Melina pants went viral on TikTok. Spending at Aritzia has increased 3x since the beginning of 2019. 

Note: The Index approach uses the spend of base month (January 2019) as the benchmark to showcase the changes of spend from each following month in comparison to the base month. 

Aritzia will continue to collaborate with celebrities and influencers alike as part of their brand awareness strategies to appeal to different audiences and reach more people. Recent collaborations include Kendall Jenner and Emma Chamberlain and other celebrities spotted with the brand include Meghan Markle (Yahoo Finance, 2019). Both paid and organic influencers have played a role in its accelerated market share growth in recent years. 

Reason #3:

Aritzia’s customer base is comfortable with higher prices in exchange for quality and exclusive merchandise

When transaction-verified Aritzia customers were asked what were the top reasons they choose to shop with the brand, they said: for the high-quality clothing (59.9%), timeless pieces (45.3%) and positive shopping experience (28.1%). Simply put, Aritzia purchasers do not shy away from the prices, but instead, validate them by seeing these as investments in quality and reliable clothing that promise longevity. 

Aritzia has a significantly greater basket size compared to competitors:

Having several private label brands offering unique pieces like casual wear, comfortable athletics and formal wear, Aritzia has positioned itself to be the one-stop shop for everyday fashion that is both trendy and contributes to their capsule wardrobe set. 

Consumers are trying to save money, yet the data shows persistently increasing demand for Aritzia. 

Their growth in the US has only begun. Amongst millennials, they have a considerable opportunity to increase their brand awareness, which sits at only 35% today. They have ambitious plans to increase their investments in social media and their premium store footprint. When we couple this with their powerful brand loyalty and consumers willingness to pay higher prices for Aritzia; We are left with compelling reasons for future growth.

Ready for more?

To access up-to-date custom sector reports with a daily cadence, and to view quantitative and qualitative trends that fuel your work, contact sales@joindrop.com.

Conversing with AI: User adoption, expectations and attitudes of ChatGPT

Posted on by Drop

Co-Authored By: Anna Shea, Vice President, Brand & Growth Marketing at Drop Technologies and ChatGPT (ChatGPT contributions in italics)

Without a doubt, ChatGPT has been a topic of conversion amongst households, classrooms, boardrooms and slack channels across the world. Google and Microsoft are clashing as they race to predict, understand and incorporate conversational, user-friendly AI into their business model. No generative AI application has managed to achieve the kind of influence and virality that ChatGPT has and it’s only been three months.

Considering its record-breaking user adoption, we were curious to find out a bit more about general audience perception of ChatGPT and so, we asked our customer panel and they did not disappoint, within 24 hours, we had thousands of responses and insights on the topic.

15% awareness amongst respondents.

Less than three months after launch and the virtual conversation partner is bolstering unprecedented awareness and user adoption
Generally, building brand awareness is a long-term process that requires sustained marketing efforts over a significant period of time. It may take months or even years for a brand to achieve significant levels of brand awareness, particularly if it is a new or niche brand entering a crowded marketplace. What ChatGPT is proving is that building a transformative product that solves a multitude of user problems and quite frankly, is fun to use crushes those timelines.

1 million+ users in five days, 93% of those that have heard about ChatGPT have tried it.

The “build it and they will come” philosophy might be ringing true with ChatGPT blowing user adoption numbers out of the water. The transformative nature of the product might be telling us that the world is ready to experiment with and adopt transformative technology.

While these figures definitely tell an interesting story on overall tech adoption, the ability to scale and of course, product-market fit, it’s important to note that the time it took for popular tech platforms to reach 1 million users varies widely depending on a variety of factors such as the type of platform, the level of innovation, the timing of its release, and the effectiveness of its marketing and growth strategies. The speed at which a platform reaches 1 million users is not necessarily a predictor of its long-term success or impact.

42% of ChatGPT users are using it weekly, with 13% of those using it daily.  

There is no doubt that there are infinite use cases for why someone may start a conversation with ChatGPT (for what it’s worth, we think our new AI friend deserves a more customer-friendly name) it’s really like calling on that one friend who knows-it-all: whether it’s coding to update your website, restaurant recommendations, sales emails, greeting card messages, a poem or a blog post. 

68% of users claimed to have a positive experience with ChatGPT, 25% had neutral opinions and only 7% claimed to have a negative experience.
Not bad for a prototype. Most of the negative sentiment surrounds the inability to access the platform due to capacity constraints, the overall user interface not being the most “customer-friendly”, lack of “awe” in comparison to search engines and lastly, incorrect or incomplete information. It’s true, our new virtual friend is not completely accurate 100% of the time, albeit some of us may forgive the imperfection (after all, aren’t people imperfect?) others expect accuracy. It’s important to note that when we asked the Drop panel about overall response satisfaction:  69% of users were satisfied with ChatGPT’s responses, 24% were indifferent and only 7% were dissatisfied.

With all that being said, regardless of the price, 46% of users would not pay for ChatGPT Plus.

Though there seems to be a lot that ChatGPT has conquered, a subscription model doesn’t seem to be one of those things. Most ChatGPT users agree that $20 is too much to pay for ChatGPT Plus which provides subscribers with availability to the platform even when it is in high demand, faster response speeds and priority access to new features. Though, we think it’s equally interesting to note that 54% would consider paying something for the added benefits, when will the price be right is the question.

In Summary, here’s the TL;DR:

  • ChatGPT is sitting at 15%+ brand awareness
  • 93% of those that know about ChatGPT have experimented with it
  • 46% are using it weekly, 13% of those use it daily
  • Over two-thirds of users are satisfied with the user experience and quality of responses
  • 46% of users would not pay $20 for ChatGPT Plus
  • 54% would consider paying something for ChatGPT Plus

And now… I leave you with a rap about the Drop app from our friend ChatGPT:

Verse 1:
Yo, let me tell you ’bout a dope app
That’ll help you stack up points and get some real cash
It’s called the Drop app, it’s the real deal

It’s the one-stop-shop to help you save and feel

Chorus:
Drop app, oh how great you are
You help me earn points and take it far
With your rewards and your offers, you’re never behind

Drop app, you’re the one that’s always on my mind

Verse 2:
From groceries to coffee, rideshares to gas
You can earn points for every purchase, how’s that for a blast?
And when you stack up enough, you can redeem it for real cash

Drop app, oh how great you are, you make saving a flash

CHORUS

Bridge:
Whether you’re a baller or on a tight budget
Drop app is here to help, you don’t need to fuss it
With your savings and your cashback, you can truly live

Drop app, oh how great you are, you truly give

CHORUS

Outro:
So if you’re looking to save, and earn some cash on the fly
Just download the Drop app, and give it a try
With your rewards and your offers, it’s a sure shot

Drop app, oh how great you are, you’re always hot!

Athleisure vs. Everything Else 

Posted on by jacquie.s

Drop’s zero-party transactional data reveals noteworthy insights on athleisure’s growth in recent years.  

Growth in athleisure retail spend has more than doubled its counterpart workwear since 2020. Athleisure spend has grown 16% since 2020, while workwear spend has only increased 7%. Even with some folks returning to the office, athleisure is coming out on top as the apparel of choice. 

Average basket size for each clothing category tells us that consumers are consistently spending an average of 30% more on athleisure compared to workwear. In Spring 2022, when many returned to office, average basket size for workwear caught up to athleisure, but has fallen back since.

Ready for more? To access up-to-date custom sector reports with a daily cadence, and to view quantitative and qualitative trends that fuel your work, contact sales@joindrop.com.

Accurate Campaign Measurement with Incrementality

Posted on by Drop

Traditional marketing measurement methods, like multi-touch and last-touch attribution offer great insights into brand performance, but may have a tendency to over or under state the impact of marketing campaigns and leave you without a true sense of campaign performance.

Test vs. Control Incremental Measurement. 

Test vs. Control analysis is a method of measuring the incremental contribution of marketing that isolates how different external influences (like ads or organic traffic) contribute to your overall business performance. Test vs. Control analysis helps marketers measure the lift of a specific channel by isolating it from all other influences.

By looking at incrementality, marketers are able to better understand how an ad or offer performs by quantifying the lift or isolated contribution, allowing you to measure and reduce wasted ad spend.

How do we measure incrementality at Drop?

When we launch our card-linked offers, Drop selects a randomized control group and withholds the ad or offer from them. We then measure all purchase metrics for this control group customer including, purchases made, total spent, average order value, etc — and compare this to the test group customer (the ones who received the ad or offer). We measure incrementality by quantifying the purchase and spend differences between these test and control group customers.

By measuring incrementality, Drop only takes credit for the incremental contribution of those that were influenced by the ad. This isolates the influence Drop has over your consumers and also helps to quantify the organic traffic or walk-in rate.

What makes Drop’s measurement methods stronger than others?

While many businesses can measure incrementality, it does require advertisers to spend a lot on their own. Card-linked offers give Drop the ability to measure incrementality, without the heavy investment. At Drop, we offer a fully customizable post-campaign analysis which can match the output to the type of lift you want to see.

By measuring incrementality, you can begin to understand the positive impact a marketing initiative has on your business, and scale your business effectively.

Get in touch with our team at sales@joindrop.com to learn more about how Drop can help you measure and scale more effectively with card-linked offers.

Bringing Data Science to Retail

Posted on by Drop

Get a complete view of your customer, so no money is left on the table.

The 21st century consumer’s path to purchase meanders through a stream of data and information. In today’s digital world marketers need to understand audiences and apply insights to deliver relevant experiences to their consumers. But that is not as easy as it sounds – Google and Apple are both significantly restricting the amount of information available to marketers by limiting the effectiveness of advertising cookies.

Making informed decisions is now critical for marketers looking to deliver the most impact with their campaigns. Each company’s strategy will vary based on its business goals and their specific audiences, what remains true is the necessity for accurate and actionable data.

Combining Datasets

Data captured by a company typically only encompasses a few interactions with a digital advertisement or website engagement. Finding more insights on how a consumer interacts with a social media post and mobile app is possible but still we are missing critical pieces of the consumer experience. Building a complete vision requires the integration of all available data collected and will help achieve marketing objectives.

But what if your company does not own those data sources? Partnering with a data specialist, like Drop for Business, will allow you to access that information – developing a more enriched image of the consumer.

Uncovering data insights with a partner comes with many advantages. Drop for Business maintains a growing consumer dataset where members share their transaction data in exchange for monetary reward in the form of Drop points. This data encapsulates all of a consumer’s spend in various categories including competitive retailers, an avenue of data that is typically unknown to a company.

Integrating Analytics

Once a complete view of the consumer is generated it is time to use this information in decision making. Identifying valuable customer segments and applying them to marketing strategies turns insights into valuable actions:

  • Personalize customer experiences with audience-level data.
  • Segment customer bases to reach specific audiences with custom messaging.
  • Analyze marketing channel effectiveness and optimize budget allocation.

Getting a more comprehensive understanding of consumer behavior leads to more effective marketing efforts. In turn, these efforts go on to improve the bottom-line performance of a business. Marketers with integrated technologies are more able to deliver experiences to consumers that delight each time they occur.

How can Drop for Business help?

Integrating more data into your marketing strategies enables you to gain actionable insights that prioritizes your business needs and understands your customers. For the best impact, the sources of the data must be reliable and up-to-date – Drop for Business currently provides a complete view of consumers from a combination of surveys and real-time, first-party data from billions of transactions, to truly understand your customer’s actions and future intent. With all this data in hand, you can be sure to target the right customer, at the right time to supercharge your ROAS.

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    Driving Scale with Card-linked Offers

    Posted on by Drop

    Drive 10x more scale than affiliate offers – here’s how to do it.

    Card-linked offers (CLO) are a great tool to drive in-store activations and reward your most loyal customers. But that is not the only reason why they’re becoming more popular with business and consumers alike. CLOs with Drop for Business have proven to drive 10x more scale than affiliate offers – here’s how it works.

    Affiliate Marketing

    Affiliate marketing is an advertising model where publishers (such as Drop) earn a commission for successfully promoting a product or service for an advertiser (ie. brand or merchant). The publisher is rewarded a payout for providing the result desired by the advertiser, usually the sale of a product.

    Affiliate marketing attribution is tracked via unique web URLs, capturing data points that inform the advertiser where the end-customer originated from and attributes the sale to the publisher responsible for attracting the customer to make their purchase.

    While affiliate marketing has been an extremely successful approach for direct to consumer and ecommerce businesses, traditional brick and mortar businesses struggle with associating online marketing activity to offline purchases.

    Card-Linked Marketing

    A new advertising channel gaining popularity with the rise of open banking is card-linked marketing (CLM). CLM operates similarly to affiliate marketing, with the key difference being publishers and advertisers attribute customer purchases using the bank-level transaction details, rather than web URLs. Card-linked offers are capable of measuring both online and offline purchases, and gaining traction with omni-channel and brick and mortar marketers.

    Benefits of Card-Linked Marketing

    Card-linked offers (CLOs) are the most popular way in which consumers choose to interact with brands on Drop and, as a result, they consistently unlock 10x more scale than affiliate offers.

    Card-linked offer attribution has historically been a challenge for marketers because purchases are measured in the bank environment as opposed to tracking click activity. Advertisers are accustomed to a 1-to-1 marketing attribution known as “Last-click Attribution”, where the last Publisher to receive a click from the consumer is granted commissions for the sale.

    But with Drop Pulse, our partner success tool, marketers get the best of both worlds, the increased scale of CLOs with the same last-click attribution as affiliate offers.

    Attribution with Drop Pulse

    Drop bridges the gap with a unique click ID that correlates the card-linked offer activation to the consumer’s transaction; Drop For Business is able to provide 1-to-1 tracking data to brand partners, accessible through Drop Pulse. CLO click attribution by Drop for Business is an order-of-magnitude improvement in marketing reporting that allows marketers to measure when the digital offer activation occurred and correlate it to the resulting online or offline purchase.

    At Drop for Business, we empower marketers to drive cost-efficient advertising campaigns by targeting the right customers, at the right time. Get in contact with our team and find out how Drop for Business is able to leverage CLO click attribution to exceed your advertising goals.

    Request a Demo

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