Co-branding is an increasingly popular option for both card issuers and merchants across Europe and the US. This report provides an overview of the market, examining how the partnerships work, the potential benefits and costs for both parties and trends. It also provides a detailed review of many programs in the market and concludes with a discussion on the future of co-branding.
Scope
Introduces and discusses different models of co-branding partnerships, explaining the key motivations for entering into co-branding agreements.
Examines recent trends in co-branding in Europe and the US.
Several co-branding arrangements are examined in detail, segmented by the construct of the loyalty proposition.
Provides Datamonitor's Cards and Payments team's view on the outlook for the co-branding by region.
Highlights
Through a co-branding relationship, customer acquisition costs can be as little as 15 per cent of what they would be through direct mail or other means. Issuing banks are also increasingly benefiting from the cross-selling opportunities that stem from these relationships.
Despite the obvious advantages of entering into a co-branding agreement, there are many pitfalls that should be avoided by both parties. From the issuer's perspective these include the risk of losing revenue from its existing customers as they switch to the new program. Both parties face reputational risk in the event of a failed program.
As a result of the success of co-branding partnerships in established areas such as airlines and hotels, issuers are now looking to different sectors to gain customers. These opportunities include web based retailers as well as other retail sectors.
Reasons to Purchase
Discover what makes for a successful co-branding relationship, and the risks associated with them.
Compare the product offerings of the most interesting and innovative co-branded products on the market.
Learn Datamonitor's' Cards and Payments Team's assessment of future opportunities in co-branding in Europe and the US.