I am sure you’ve seen it:
“Refer a friend to subscribe to this service and receive $50 off of your next statement”.
Wow $50! That’s a great incentive right?
Actually, not so much. By incentive industry standards, bill credits do not make a memorable incentive, don’t drive the desired behavior and lack the repetitive impact of a discreet item – like a gift card.
First thing to know is that studies show that 1/3 of millennials don’t review their statements before paying them. So a $50 credit to their bill will be lost on many recipients. They won’t remember receiving the incentive or even give it another thought.
Secondly, who talks about bill credits? “Hey I received $50 off my cable bill this month!” said no one ever.
Lastly, and most importantly, how do you engage your biggest fans in multiple ways and multiple times? More and more bill credits just won’t work. In fact, consumers have “overwhelmingly expressed their preference—68%—for one type of incentive: a gift card, with preference for rewards of coupons or bonus bucks coming in at 14% and 8% respectively.”
That is why gift cards are the perfect incentive and deliver the biggest impact.
A full 2 out of 3 people remember receiving a gift card from a business, remember what they purchase with the gift card and associate it positively with the business that gave it to them. That is impact!
Additionally, it is natural to talk about a new gift you purchased for yourself with a free gift card. “This new phone case? Oh I got it from Best Buy with a gift card I received for referring two friends” Awesome right? We call that impact.
Gift cards deliver results. In other posts we’ve talked about the behaviors resulting from using gift cards in your program. But even above and beyond that – they are memorable, have a lasting impact, and will expand the reach and excitement of your program overall.
Written by Nat Salvione
Nat Salvione is VP of Business Development at Tango Card. He has been soaking in the prepaid industry for 15 years with companies such as Incomm, Coinstar, and Giftcertificates.com. With prepaid industry leadership roles under his belt in partnerships, product and sales, you might say he knows his stuff.