WHAT DOES RESEARCH SAY ABOUT PREPAID CARDS VS. CASH?
2016 is quickly approaching and businesses are thinking of new ways to reel their customers in. It is highly evident that incentive and customer rewards play a huge role in retaining customers but which is better? Prepaid cards or cash? After we did our research we noticed all of the reasons that prepaid is in and cash is out.
Prepaid cards have become more and more popular in the loyalty and incentive world but, what actually are the benefits of prepaid cards?
Apart from being an easier and safe way of carrying money, prepaid cards are reloadable. Once a customer runs out of the money on the card, they can simply add more online and not have to worry about hassling with cash.
Prepaid cards are efficient budgeting tools. It is easier to keep your spending under control when you load how much you are willing to spend and when the amount is gone- it’s gone. It is impossible to overspend. This technique is perfect for parents wanting to teach their teens about budgeting and spending money.
Because the system of prepaid cards is nearly all digital, ATM withdrawals and direct deposits are a definite must. It is fairly simple to get cash if you do need it for those street fair vendors. On the opposite end, to directly deposit all you need to do now is take a picture and upload it onto your banking website.
Prepaid cards provide the ultimate protection against fraud. Along with showing picture id’s on them, most merchants require another form of a valid i.d. to ensure the card has not been stolen. There is also protection with the freezing card capabilities.
So now we have heard why prepaid cards are beneficial for many reasons, here are the reasons why cash is outdated. When you are giving a customer incentive you want this to be memorable. You have the capability to give Starbucks gift cards, prepaid Visa’s with your logo on them, or so much more. By simply giving out cash you lose the personal touch. Yes, they will be able to spend it but you lose another opportunity for branding and showing your company’s personality.
Lastly, people simply do not carry as much cash as they used to. Why deal with sorting through cash and change in your pocket when you can monitor your spending through one simple prepaid card?
The new marketing technique of 2016 is to give prepaid cards as customer incentives or rewards. There are closed loop and open loop opportunities for this. Where does your company stand when creating the customer relationship and offering incentives?
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