YES Bank and cashback and coupon site Cashkaro have launched a customer loyalty programme with card-linked offers, which will allow merchants to create personalized and targeted deals for cashbacks. The promotions are sent via SMS, e-mail mobile app notifications and a separate web page. At present, this personalised cash-back service is available on YES Bank debit cards, on transactions made both online and offline, but will be extended to other payment products.

While cashback deals are common, what’s important to note here is that YES Bank cardholders will receive offers on the basis of their shopping patterns. Currently, merchants such as Forever 21, TataCliq, Chaayos, Junkyard Café, UrbanClap, Zivame, Nearbuy, Limeroad, Netmeds, BigBasket, 1Mg and Croma have signed on board. Rohan Bhargava, co-founder of Cashkaro, said that they will be bringing about 100 merchants in the next 3-6 months and will include large format retail groups as well.

Ritesh Pai, senior president for digital banking at YES Bank, told MediaNama that the bank is also looking at the partnership as a means to activate dormant cards, or cards which are primarily being used for withdrawing from ATMs. “We want to make sure that these cards are being used for digital transactions at POS machines,” he added. The cashback will be credited within seconds (unlike in the case of most banks), to the savings account or the YES PAY wallet.

How the profiling and targeting works

– Profiling and parameters: YES Bank builds the profile of a customer for marketing. “Other banks usually give out a blanket offer for cards. They may segment it on the basis of the type of cards etc. But with Cashkaro, we can provide very targeted promotions for customers based on their spending patterns. We can even analyse a customer’s shopping preferences – say if a customer likes buying grocery online – then we can make an offer tailored to them,” Pai said.

Cashkaro does the initial targeting where retailers can set parameters on what kind of demographic they would like to attract. The parameters can include age, location, spending patterns, etc. For example, a Chaaayos outlet can send out offers to 25-35 age demographic within a particular neighbourhood.

– Promotions and data sharing: The data is anonymized and tokenized and provided to Cashkaro through an online interface. Thus the customer data is not provided to merchants, and the merchants can only set the parameters. YES Bank will send promotions to cards/customers which match the parameters. According to YES Bank, consent for the communication is taken when a customer signs up for a card from the bank.

– DND: The bank will be sending out the promotions for offers. However, if a customer is on TRAI’s do-not-disturb (DND) registry, they will not get SMS promotions but they will be able to get offer linked to their card. Note customers can also opt out of getting promotions altogether and the card will not be eligible for the offers, Pai said.

All cash backs are funded by merchants themselves. The bank will also have to reconcile the amounts which were spent on promotions with the merchants.