Imagine offering merchandise or a gift card instead of a standard $10 off incentive to drive sales. Changing your discount structure in such a way may seem crazy but new research from Ifeelgoods may have you thinking differently. The research revealed that, if given a cash-based offer or a non-cash reward, consumers carried more brand equity and purchase intent than when retailers put more cash back in consumers’ pockets. The study revealed that non-cash incentives had diverse positive correlations with consumers including:
- 21% more positive brand association- when consumers like a retailer’s behavior, they will let you know.
- 42% more brand differentiation- don’t be afraid to be different and memorable, that's what keeps you top of mind.
- 13% more purchase intention- leading to longer term sales boost.
We all know retailers do a lot of discounting. However, when retailers make it their sole incentive practice it can become a race to the bottom. Not only are non-cash rewards and incentives more popular with consumers, they lead to a long-term revenue and sales boost for your business. By building good will and loyalty with consumers, and providing them the value-add they are looking for, your brand builds relationships where basic sales and discounts fall short. This concept can transition seamlessly into the employee/employer relationship as well. Non-cash rewards and incentives, like merchant gift cards, provide trophy value that is more memorable for employees than a temporary marginal boost in their paycheck. Make sure you give your consumers and your employees a discount, reward or incentive that they will remember.
