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How to Cross-sell through enriched card payment data

Ondřej Slivka
4
min read

Have you ever been hesitant to go into a car dealership for the fear of being mobbed by hungry salesmen? Bank account holders feel the same way about banks that are too aggressive with cross-selling efforts. Rather than taking a scatter-shot approach that catches customers in the crossfire, banks should target those customers who might buy the product.


What is Cross-sell?

A cross-sell is the sale of an additional product or service that is related to the primary purchase that a customer or client makes.

According to study by Temkin group, loyal customers are 5x as likely to repurchase, 5x as likely to forgive, 4x as likely to refer, and 7x as likely to try anew offering.

Role of payment data in Cross-selling

Mobile banking solutions give new opportunities for banks to reach their customers. Traditional channels such as e-mail or SMS usually lack personalization, as confirmed by the Gallup study.

Gallup study shows that 66% of customers feel that incoming offers are general in nature, with 53% of customers already owning the product being promoted.

For example, a bank can put a promotional message in the personal financial management (PFM) tool, which usually includes the possibility to add customers’ personal goals. 

Banks can analyze this data and benefit from it by promoting relevant e-commerce products/merchants. Thus, offer potential customers the option to receive cash back from shopping right in their banking app.

What's in it for the banks?

Increased amount of mobile app users

Offers from leading brands prompt your customers to use the banking app more.

Higher card payment frequency

Clients are motivated to pay by card more frequently.

Loyal client base

Customers value the benefits that only their bank has to offer.

 

Dateio success story

Cross-selling is all about connecting with your clients and creating meaningful customer incentives. Dateio operates discount programs for banks, where the analysis of transaction data provides clients with interesting discount offers in the form of cash back when paying by card, ie without the use of coupons and loyalty cards. Its algorithms work with the most accurate anonymized datasets of customers' shopping behavior on the market. By analyzing the shopping behavior of customers based on their enriched card transactions, Dateio provides personalized promotions and bank clients save money on goods they ordinarily buy.

 

Enrichment data flow

How does It work?

Dateio’s solution combines the benefits of payment data enrichment and cash back offers into a new and unique approach that bridges the gaps between traditional and mobile commerce. Partnering with merchants that customers encounter on a daily basis (e.g., supermarkets or gas stations) guarantees the usage and high relevance of provided offers.

The model is quite simple. The customer makes a POS or online payment. The bank sends anonymized data through TapiX API and identifies the merchant’s name, logo, GPS, and category. These datasets are used for internal analysis and put into real-life use cases. Based on the category and GPS of the transactions the clients are offered in-app personalized offers, which can be easily activated with one tap. Once the payments processed, the cash back is received by the client seamlessly on the background without any required interaction.

 

Outcome

Bank earns money rather than spends

The retailers pay commission based on sales volume realized through the card-linked marketing platform. Part of the commission is shared back with the bank. So, not only does the bank makes the customer feels better and, save money but the bank also earns a commission on the sale.

Users will be more engaged

They will spend more time in the mobile banking app to find and activate offers from love brands and will come back again to check the cash-back status. The cash back is transferred to the account directly.

Fintech proposition integrated within banking ecosystem

Bank clients will be exposed to relevant offers from trending retailers through the mobile banking app. Offers are fast-moving and flexible. There is always something new for clients to look up. Also, no extra loyalty cards and applications are needed for users to enjoy the offers. They only need to pay with their bank cards as usual.

 

Activation

Dateio platform cashback process visualization
Cash back from the customer's point of view. 

The model is a win-win-win for all parties involved

 Banks

Higher client engagement with mobile banking app, more cross-sell opportunities, higher loyalty & customer LTV.

 Clients

21st century way to get offers from attractive partners –personalized, easy to redeem, bringing real & material benefits.

 Retailers

Access to new digital marketing solution that brings new client sand incremental revenue, with high ROI & ROAS.

 

This new digital era is all about customer loyalty and innovation. Features, such as Card Linked Offers can be the win-win-win outcome and a seamless bridge between banks, customers, and retailer store improve the user experience and provide highly relevant services. If you want to unleash the power of cross-selling in mobile banking and discuss the use cases of our payment data enrichment API.

 

About author

Ondřej Slivka

Senior insider

A seasoned B2B marketing enthusiast with 5+ years of experience sharing insights in the world of digital banking and fintech. My passion lies in crafting innovative strategies and engaging content that delivers desired results.

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