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BizReport : Loyalty Marketing : May 25, 2020

Study: Digital incentives key to engagement

Americans like their rewards. This has been known throughout the ad industry for decades, but new data out from MasterCard finds that digital rewards are just an important to many consumers as physical rewards.

by Kristina Knight

Digital incentives may have a bigger reward than many businesses thought. Once believed to merely be a 'thank you' or a type of goodwill ambassador, new data finds that digital incentives aren't just making consumers happy - they are encouraging consumers to recommend companies to their friends. According to MasterCard's new data most (81%) of people surveyed said that receiving a digital reward made it more likely that they would either buy from the brand or recommend the brand to someone else.

"People expect to be rewarded for their purchases and workplace accomplishments, and digital incentives are extremely effective in doing so--plus, people want these rewards. For example, we found 84% of people surveyed who work from home prefer prepaid and gift cards as incentives from employers," said Theresa McEndree, vice president of marketing at Blackhawk Network. "Interest in digital incentives is particularly prevalent among younger generations, more digitally-minded Americans and those who work remotely. As the buying power of Gen Z and millennials grows, as digitally savvy and younger Americans comprise a larger percentage of the U.S. workforce and as employees become more spread apart geographically, it will become increasingly vital for businesses to understand how to effectively motivate and satisfy these audiences."

Rebates, incentives, and payments top the list of most wanted (71%) digital rewards, according to the report.

Other interesting findings from the report include:

• 90% say they view digital incentives from employers a good reward for their work
• 78% say digital incentives motivate them to work harder for their employer
• 74% say digital rewards from businesses they frequent increases their loyalty to the brand
• 64% say digital incentives influence their online shopping choices

Researchers with MasterCard and Blackhawk Network collaborated on the research. More data can be accessed here.

Tags: advertising, advertising rewards, Blackhawk Network, digital incentives, ecommerce, ecommerce rewards, loyalty marketing, rewards marketing

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