By Andrew Newman, VP of Business Development, Wildfire Systems
The initial appeal of online shopping companions often revolves around the straightforward promise of earning cashback rewards and applying coupon codes to online purchases. These tools have become widespread, offering tangible savings for online shoppers.
However, this feature overlooks untapped value within the numerous benefits offered by credit cards and loyalty programs. A new generation of intelligent browser extensions is emerging, poised to redefine their value proposition by delivering customer benefits that extend beyond simple cashback rewards.
The Challenge of Underused Loyalty Program Benefits
A central challenge within the current financial landscape is the underutilization of value-added benefits associated with credit cards and loyalty programs. These benefits can range from complimentary rental car insurance and extended product warranties to exclusive dining rewards, travel-related benefits like VIP lounge access, and early access to event tickets.
Often, the details of these benefits are quickly forgotten by the consumer. This results in missed opportunities for consumers to save money or enhance their experiences, reducing the full value they could be recognizing from a loyalty program or card. Reports indicate surprisingly low usage rates for such features, highlighting a considerable gap between the benefits offered and those actually leveraged by consumers. For example, CarTrawler reports only 12% of people who rented a car in the past year used their loyalty program for booking.
Intelligent Reminders: Delivering Value in Context
Browser extensions are now evolving to address this gap by proactively surfacing underutilized benefits during the online shopping journey. Rather than just focusing on cashback or discounts, these smart shopping companions can provide contextually relevant reminders of applicable benefits in real time.
Consider a shopper booking a rental car online. A browser extension could recognize when that same shopper has landed on, for example, Kayak.com to comparison-shop rentals. Drawing on the shopper’s loyalty program membership or premium credit card ownership, it could then remind them if a specific credit card or program offers complimentary loss damage waiver (LDW) insurance. This timely notification could save the shopper from purchasing additional coverage offered by the rental company, directly translating to tangible savings.
There are many applications of surfacing these benefits right when the shopper needs them. A few examples include:
- Travel -An extension could alert travelers to use the credit card that offers benefits like bonus frequent flyer miles or complimentary travel insurance for buying flights with that card.
- Entertainment – When buying in-demand concert tickets, a notification can inform consumers about a credit card or bank program that provides early access to event presales.
- Shopping – Notifications can be triggered to remind consumers that a particular credit card extends the manufacturer’s warranty on electronics or other eligible purchases.
Empowering Users and Enhancing Loyalty
This proactive, in-the-moment delivery of information empowers consumers to make smarter financial decisions and fully realize the value of program benefits they already have access to. By seamlessly integrating these reminders into the online shopping experience, this next generation of smart shopping companions transform from simple savings aggregators into valuable guides that help consumers maximize the advantages of their financial products.
For financial institutions, this enhanced engagement with often forgotten benefits can lead to increased customer satisfaction and loyalty. By making these benefits more visible and easier to use, these extensions can foster a greater appreciation for the value offered by their cards and programs. This can translate into higher card usage and ultimately, improved customer retention.
The Future of Intelligent Shopping Companions
This evolution of shopping companions marks a crucial step in enhancing their value proposition – as well as the value of the credit cards consumers use on a daily basis. By moving beyond the traditional focus on cashback rewards, these intelligent browser extensions are now empowering consumers to unlock the hidden potential of their existing financial benefits. Through the delivery of timely and relevant benefits, they are becoming trusted guides that enhance the entire online shopping experience, ultimately providing value that extends far beyond the immediate gratification of a rebate.
About the author
At Wildfire, Andrew Newman develops strategic revenue-enhancing partnerships with financial institutions and fintechs, helping them incorporate value-adding customer loyalty features powered by Wildfire’s platform. He has deep experience in partnerships in the payments and loyalty space, having held leadership positions at Cardlytics, Truaxis (acquired by MasterCard), and then at MasterCard itself as Vice President Loyalty Solutions. Andy founded his own retailer consulting firm in 2018, counseling early-stage Series A companies on business development and vertical account management, generating fast-track growth and market expansion for his clients through the use of FinTech technology.
