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Alliance Data Enters into Multi-Year Agreement with Wayfair

Alliance Data Systems CorporationADS declared that its Ohio-based card services business has entered into a multi-year agreement with Boston-based online home furnishings and decor provider, Wayfair, Inc. W . Per the agreement, Alliance Data will provide private label credit card services to Wayfair.

In order to provide its services, Alliance Data will design a card program specifically for Wayfair. This program will feature one credit card that can be used to buy products from all the five brand websites of Wayfair namely - Wayfair.com, AllModern, Joss & Main, Birch Lane and DwellStudio. Moreover, the program will bring reward benefits for Wayfair's customers, which surged by more than 50% year over year in 2014. Alliance Data's innovative digital acquisition tools will boost Wayfair's customer experience, thereby attracting new customers to the program.

At present, Alliance Data's Conversant and Epsilon businesses are already in partnership with Wayfair. Per the partnership, Alliance Data provides the online retail behemoth personalized permission-based communications across multiple channels, including direct mail and digital. Epsilon helped Wayfair launch Birch Lane, while Conversant provided personalized messaging service for the retailer's customers across all their devices. Based on the past success of the partnership, Alliance Data collaborated with the company again to boost their relationship further.

Wayfair stands out in its approach of enhancing customer experiences and driving long-lasting loyalty. This is similar to Alliance Data's strategy of boosting revenues. Wayfair's solid customer relationships and a strong top-line boosting strategy are expected to help Alliance Data enhance its profitability to a large extent. Notably, the new private-label card program should boost Alliance Data's data assets to bring analytics and insights, which in turn should boost sales structure and generate enhanced value for the company.

Alliance Data currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks from the financial transaction services space are Equifax Inc. EFX and JetPay Corporation JTPY . Both stocks hold a Zacks Rank #2 (Buy).

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ALLIANCE DATA (ADS): Free Stock Analysis Report

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WAYFAIR INC (W): Free Stock Analysis Report

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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