Lewisville, TX, (February 13, 2014) — Today’s economy is forcing businesses to look for new ways to incent shoppers to purchase products or subscribe to a service. The newest parago study, “People Prefer Prepaid Rewards,” shows that prepaid cards are the preferred incentive.
This research also revealed that consumers still prefer physical cards to digital rewards — even when Amazon gift codes are an option.
“We’re not surprised to confirm that consumers love prepaid card rewards; these cards are like cash and people enjoy the flexibility and convenience. What was more unexpected was that, in an era of digital shopping, consumers still prefer physical over digital rewards,” said Theresa Wabler, Global Director of Marketing at parago. “This report gives a clear directive to consumer-facing businesses: your customers are more likely to buy from you when rewarded with prepaid cards, sometimes even in values lower than other incentives.”
The popularity of prepaid cards is evidenced by this market’s continued growth, which blossomed to $194.5 billion in 2012, according to Mercator Advisory Group. The closed-loop, or retailer-specific, prepaid market grew at a slower rate in 2012.
The full parago “People Prefer Prepaid Rewards” study can be downloaded for free here.
Key findings from the research include:
- Prepaid cards rule: more than half of shoppers prefer prepaid cards over gift cards from Amazon, iTunes, Target, Walmart, Home Depot and more.
- People prefer plastic: 2 out of 3 shoppers prefer physical cards over digital cards.
- Prepaid wins across every industry:
- 2x more car buyers prefer a $200 prepaid card than a $250 instant discount.
- 62% of replacement tire purchasers prefer a cash reward on a prepaid card.
- 1 out of 2 consumers will pick a cable, internet or utility provider that offers a prepaid card reward.
- For hotels, a prepaid card reward is 4x more powerful than 50% off a third night.
- 1 out of 3 single-cup coffee maker buyers prefers prepaid cards (a higher percentage than any other reward option).
The shopper survey was completed in September 2013 via independent online delivery. More than 1,400 consumers (representative of the U.S. population by education, income and sex) responded to a 23-question survey that explored which rewards would affect their purchasing behaviors.
parago creates engaging solutions that inspire actions and impact results, delivering $2 billion in rewards to 50 million people worldwide each year with advanced technology. A relentless focus on innovation (including three patents and 27 industry firsts) drives better results. That’s why parago is the smart choice for leading Fortune 500 companies and some of the largest brands in the world. Number one in consumer rebates and incentives, a global provider of channel management, a top solution for employee rewards and recognition, parago is a top-ranked digital and promotion agency according to Advertising Age’s 2013 agency rankings. For more information, visit www.parago.com, the parago blog or Twitter. parago: the thought that counts.
PRESS RELEASE SOURCE: parago
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