STACK™ Reward Program Management Software
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 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 and compare thousands of products in minimal time with only minimal effort on the consumer’s end. Prepaid and physical gift cards effectively attract customers to products and brands. However, could we possibly go to only e-gift codes with the millennials?
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 cards you can swipe in-store. Read on for more differences and better qualities per each code and card.
1: Costs
As a business, you must think of new and innovative ways to draw in your customers. Offering codes and cards are wonderful incentives and tend to bring in double the amount that coupons and other rewards give. Codes are an obvious lower cost and are simply sent within seconds because of the email, text, or social media applications. Although it seems a minimal cost for each card, think about how many cards you send out. The costs of cards build up after a while, especially if you have hundreds of thousands of prepaid cards you send out.
2: Immediate
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. A physical gift card waiting in the mail can be painful for 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.
3: Ease of fulfillment
Codes are quicker to receive online, and they are also quicker to purchase 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, and receive happier customers.
4: Happy Customers
By 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 by focusing on the customers.
5: Aligns with your brand, honest, easy, and 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.
