- Direct marketing centered on prepaid incentive cards generates average response rates that are 4 to 7 times higher than traditional direct mail promotions.
- Prepaid incentive cards offer flexibility when designing and administering direct marketing campaigns. A campaign’s goal might be to acquire new customers, or it might be to build traffic and loyalty among existing customers. Incentive cards can be designed with any dollar amount. They can be set up to automatically reload for special incentives. They can be set to expire quickly or after a long period of time. In short, they can be tailored to fit any marketing objective, and adjusted with considerable flexibility and rapidity.
- In an uncertain economic environment, businesses are looking for effective, affordable ways to connect with consumers, and consumers are looking for value. With prepaid incentive card offers, everyone feels like they are getting good value. From 2008 to 2009, the prepaid incentive card market grew by 8 percent, to over $22 billion. This growth demonstrates the rising popularity of incentive cards as powerful marketing tools, even in times of economic austerity.
- The retailer’s initial incentive card campaign produced a 35 percent response rate, far exceeding any previous marketing campaign.
- The fact is that when a consumer receives a direct mail piece with a relevant prepaid incentive marketing card, he or she is more likely to respond.
- An incentive card is immediate, meaning a consumer can use it as soon as it is activated
Effects of a Down Economy on The Incentive Industry
- [During the economic downturn], The most frequently mentioned changes in award selection were…
- Increase the use of debit/gift cards (21%)
- Include individual travel as an option (19%)
- Decrease merchandise award value (16%)
- People are …
- going longer than they used to between haircuts (41 percent)
- taking ‘staycations’ rather than big trips (43 percent)
- packing a brown-bag lunch instead of eating out (48 percent)
- Fifty-seven percent of women we surveyed said they are painting their own nails rather than going to the salon