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Case Study: Cash Vs Blended Incentive Model: What Performs Better?

Introduction

The following is a case study regarding a leading global market research company’s incentive reward program.  They own and operate multiple research panels that deploy different incentives and delivery mechanisms to recruit, engage and retain panelists for research projects and programs.  They actively engage millions of members with various client projects and programs.   They have been a client of All Digital Rewards since 2012. All Digital Rewards approached the client to move off a pure cash-incentive-spend to a blended-reward-incentive mix of cash, prepaid debit cards, merchandise, and to apply advanced technologies to achieve a reduction in the overall program cash loyalty spend on incentives while at the same time improving customer experience, efficiencies in reward delivery, analytics and reporting.  The client agreed to move one reward program to a blended reward mix.

All Digital Rewards recommended an incentive program change due to All Digital Rewards operating other loyalty programs for clients with a blended methodology and saving over of 18% or more on their cash incentive spend and felt that if this client applied the same methodologies to their other programs they would realize substantial savings.

A cash-based reward program is where the end-user, upon completing a qualifying market research activity (as in this case – could be other types of activities in other industries) is rewarded with a check, prepaid card, or PayPal in a cash denomination upon completing the desired behavior; whereas a blended-incentive reward program offers points or reward value to the end-user that they can spend towards a selection of incentive merchandise, digital rewards, and cash rewards (virtual visa, physical prepaid card, or check) as well.

The reason behind the rewarding of the end-user, in this study, is due to the market research company’s need to have proper mixes of demographics readily available to participate in questionnaires, surveys, or activities for the market research company’s clients.  Some demographics are more difficult to engage than others, so a reward is necessary to not only attract those persons but also keep them engaged for future purchases.

Table of Contents:

Situation

  • Program 1 Rewards
  • Program 2 Rewards

Overall Challenge

Solution

  • Engagements Per User Compared
  • Program Cost Prediction Change Cash to Points

Conclusion

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