Incentive programs drive customer behaviors and ultimately, drive your sales revenue. Incentive programs are not what they used to be. Instead of coupons and extra savings when you purchase in-store, prepaid cards and gift codes offered online are bringing in customers to purchase more than they ever have in the past. Millennials are the digital entrepreneurs and use technology to build their brand identities. The millennial generation is projected to have $18 Trillion in spending money by 2018. Online business is booming and is only going to grow from here. Buying online is easier to redeem, compare thousands of products in minimal time with only minimal effort on the consumer’s end. Prepaid cards and physical gift cards are effective at attracting customer to products and brands. However, with the millennials, could we possible go to only e-gift codes?
E-Gift Codes Vs. Physical Cards
Electronic gift cards, also known as e-gift cards, digital gift cards, mobile gift cards and virtual gift cards, all refer to gift codes that are delivered using technology like email, SMS text, social media and smartphone apps. Physical prepaid cards are just that. Prepaid cards are the actual hard debit or credit card you can swipe in-store. Read on for more differences and better qualities per each code and card.
As a business, you need to think of new and innovative ways to draw in your customers. Offering codes and cards are wonderful incentives and tends to bring in double the amount that coupons and other rewards give. Codes are an obvious lower cost and it is simply sent within seconds because of the email, text, or social media applications. Although it seems a minimal cost for each card, think how many cards you are sending out. The costs of cards builds up after a while, especially if you have hundreds of thousands of prepaid cards you are sending out.
Instant access is important to the millennial generation. After five seconds, the abandonment rate is 25 percent. When you get to 10 seconds, nearly half those website consumers are gone. With a physical gift card waiting in the mail can be painful for the impatient consumers. Offer a gift code and have it sent out immediately. Within one to two minutes your customers will have their savings and remain happy, purchasing your products.
- Ease of fulfillment
Codes are quicker with receiving online, but they are also quicker with purchasing online. E-Gift codes need only be entered in a simple tab on your website for your customers to receive savings. With physical prepaid debit cards, the customer must wait to receive the actual card, then activate the card, then enter the numbers online. It’s a process that takes away from the customer experience. Simplify the process, receive happier customers.
- Happy Customers
With satisfying your customer’s needs for instant gratification, you can focus more of your time on unique campaigns and promotions than on dealing with unhappy customers. Understand that your customers’ preferences will change throughout the years. Create a process for your marketers to deal with the changes and watch your business stay successful for focusing on the customers.
- Aligns with your brand, honest, easy, ready to work with you.
Ultimately, you must choose an incentive program that works for your brand. Remember that customers value honesty, transparency, and brands that are “ready to work with you.”
For more information about prepaid cards, e-gift codes, or incentive promotions call us at 866-415-7703.