Online-to-offline rewards company Plink is making good use of the plethora of data for sale from Facebook. The customers delivered by advertising on Facebook have powered the Denver-based company to new heights since its launch in 2011.
“Plink will motivate $100 million in sales in the next 12 months,” CEO Peter Vogel told Bank Innovation. $5 million will come this August alone. The company counts 800,000 users.
“We get paid a percentage of total sales we drive to [retailers,]” Vogel said. With restaurants, that percentage can be as high as 15%, but other verticals, such as gas, might pay just 1% to 2%.
When Facebook users “like” Plink’s affiliate brands — Taco Bell, Sear, Dunkin’ Donuts, to name a few — Plink can offer its card-linked rewards to those users.
“There’s a strong motivation when you’re already a fan of the brand to receive related rewards and offers,” Vogel said.
Plink customers link a debit or credit card to their accounts, and are presented with offers at selected offline retailers based on the users’ preferences. Purchases earn “Plink points” that can be used across the affiliate network.
Plink CEO Peter Vogel pointed out that 80% to 90% of consumer spending takes place offline. Plink’s model takes the online affiliate advertising model, where a business pays referring partners for delivering customers, and offers the same value offline.
Plink’s customer base has doubled since January of 2013, the company said. Its mobile app was launched in February. Plink offers can now be redeemed at more than 75,000 locations nationwide. Recent merchant partners include Dollar General stores , Foot Locker, and Best Buy, which is the first retailer to launch a co-branded Plink site. Two more are set to launch within the next few weeks, according to Vogel. Plink’s network of stores includes Gap, Burger King, 7-Eleven, and many more national chains.
Mobile is growing in importance for Plink. “We’re still in the first inning with mobile,” Vogel said. “We’re still primarily acquiring users online, but within the next six months to a year, we expect that to migrate much of that to mobile.”
Plink’s history is intertwined with the social network. It began by offering Facebook Credits, but soon shifted focus to its own rewards points.
Social media, particularly Facebook, is currently the primary driver of customer acquisition. “Facebook has amazing targeting,” Vogel said. “Geographic, age-based, verticals.” Perhaps most importantly is the ease with which Plink can target users that like certain brands, and drill down into that data to segment those users and find the most promising prospects.