Unlock “autopilot money” with smarter reward management

Most credit cards (more than 80%) offer rewards to their users.

But taking advantage of these rewards can be a challenge, especially for shoppers who are already in a shopping jam.

To complicate matters, as Kudos co-founder and CEO Tikue Anazodo told PYMNTS CEO Karen Webster, existing digital wallets are more focused on driving merchant integrations than solving real consumer problems -That’s why one of the biggest challenges in adopting a digital wallet is ensuring that the wallet works seamlessly across all shopping platforms.

“I’m not going to go to a store with a physical wallet and a physical credit card and wonder if it works,” Anazzado said. He added that because many digital wallet providers are still grappling with merchant integration issues, “they put the consumer Everything in terms of investor value is put on the back burner.

But by focusing on consumer needs and leveraging advanced data insights, a more personal, efficient and valuable shopping experience is possible that simplifies the complex world of credit card rewards and tailors it to what consumers are most interested in right now. The right way to provide them with personalized recommendations at checkout—and more.

“Our goal is to create a wallet that prioritizes consumers’ needs, providing personalized and actionable insights into their spending,” Anazzodo said. “By understanding what consumers are purchasing at specific merchants, we can provide tailored recommendations on which credit card to use to maximize rewards… For example, if you just purchased a mattress at Casper, maybe you want to When purchasing bedding, we can provide you with personalized customized services.

“We want to try to make your money work for you,” he added.

Adopt first principles to meet consumer needs

Kudos works by integrating a browser extension that tracks a user's shopping journey. This approach circumvents the integration challenges faced by many digital wallet providers and enables platforms to gain detailed visibility into a consumer’s purchase history, even down to the SKU level.

Anazodo explained that such detailed information is the basis for highly personalized recommendations, but even card issuers often don’t have this information, noting that Kudos is working on “integrating offline transactions through Plaid, which will factor into credit card recommendations” Add more nuance”.

For example, if a user frequently shops at the grocery store, the best credit card can be recommended to the shopper to maximize cash back on those purchases. Kudos can also suggest new credit cards that might offer better rewards based on the user's spending habits.

“Our goal is to make our wallet more than just an accessory, but a best-in-class tool that truly makes consumers’ money work more effectively,” Anazzodo said.

Understanding that consumers are often reluctant to disclose their financial details, Kudos adopted a progressive onboarding strategy. Initially, users simply specify which cards they own from the more than 3,000 supported cards. Over time, as they see the value the platform provides, they can gradually add more details.

“We found that within a few weeks, most users were easily able to fully set up their accounts, giving us the data we need to provide more personalized recommendations,” Anazzodo explained. “It’s important to not only understand the consumer, but to be able to provide value in a very tangible way… Whenever we launch a product, we try to quantify that value.”

Unlock your digital wallet in a modern shopping experience

PYMNTS Intelligence found that younger consumers, especially those in Generation Z, are more unconventional when deciding on the list of rewards they want.

For example, 24% of Gen Z consumers would welcome a subscription or membership in exchange for card purchases. Flash sales also attract 16% of Gen Z consumers, significantly higher than only 5.4% of older generation consumers.

“Our vision is to unlock what we call self-driving money, and we’re building a wallet that works just for you, the consumer,” Anazzodo explained. He emphasized that since most Americans have rewards credit cards, managing These rewards are meaningful as an attractive anchor.

“Because we see a more complete picture of the consumer, it gives us a lot of ability to offer more… By leveraging artificial intelligence and a complete understanding of consumer spending, we can provide insights beyond simple reward optimization,” he added .

Looking ahead, Anazzodo said that as the company closes its latest round of funding, it's focused on making the product work for itself by “making it work for itself… If the product works for the consumer as it says it does, people will tell other people.” to expand the scale.

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