GIVE ME THE
EVERYONE WANTS MONEY, RIGHT? IN FACT, WHEN IT COMES TO BEING REWARDED FOR LOYALTY, THAT IS NOT ALWAYS THE CASE, WRITES JOYCE MONSON.
C
ash, merchandise, vouchers, travel – what does it really take to engage and motivate people to change their behaviour? Ask them directly and the answer will likely be,“ Cash”. Loyalty and rewards professionals sionals will tell you that the reality is not nearly so straightforward. So what does drive engagement gement, inspire loyalty and secure valued relationships with your customers and your staff? If there ever was a correct answer to the question, there isn’ t anymore – reward is relative.
Mention the word“ reward”, and people typically think cash. It’ s the money you get in return for spotting a wanted fugitive or finding a lost dog. It’ s a universal need, with sure-fire appeal, and no one can get enough of it. What’ s not to like about a cash incentive?
Well, sometimes it’ s not about the cash. I see the“ Reward offered” headline more as a sort of promissory note of thanks for helping out. A cash reward is a nice thought, but to me, unnecessary – at least in the case of finding a dog. That would just make me happy. And I wouldn’ t play bounty hunter for any amount of money. So what makes a reward rewarding?
Reward programmes are ultimately about changing behaviour – getting salespeople to sell more, or customers to buy more( more often), or motivating staff to jack up quality. Even if you’ re
just looking for more clicks, opens and page views, it’ s all about engaging your target audience e, giving them an incentive to take action, and delivering an experience so intrinsically rewarding that they want to do it again.
So what does it take to engage interest, motivate action and set the behaviour-change process in motion? It depends on the individual: interests; age; lifestyle; family; and a slew of other personal variables. And these days, a mind-boggling g array of rewards. Some branded, some not, some
IN THE CARDS
The Incentive Federation reports that in the US, 71 % of employee-reward programmes mes and 87 % of loyalty programmes use gift cards. In the UK, vouchers have an edge e.
A recent Incentive Research Foundation UK survey looked at how firms use employee-incentive rewards: in merchandise and / or pre-paid and / or digital incentive programmes, vouchers accounted for 42 %( plastic) and 32 %( paper) of the rewards offering, followed by downloads( 38 %), merchandise( 37 %), and closed- and open-looped cards at 32 % and 25 % respectively.
virtual, some experiential – and there’ s practically nothing you can’ t do or buy with a gift card. And then there’ s cash.
THE PROBLEM WITH CASH
Cash is a fast, easy, all-purpose reward, perfect for any occasion. Or maybe not. Most loyalty experts say when they ask any demographic what they want as a reward, they respond,“ Cash”. So why not just give the people what they want?
The short answer is that cash is intangible, has no brand value and doesn’ t pack much return on reward investment. For recipients, it’ s a nice boost to the bank balance for a short while, until school fees are due or the car needs servicing, and then it’ s gone.
Entrenching loyalty to a brand requires rewarding people with something tangible. That way, they’ ll remember the experience and the sense of being rewarded. Things with trophy value provide talking points. There’ s no reward value in paying the bills.
Barry Coltham, operations director at Achievement Awards Group, puts it this way:“ It’ s a classic‘ do this / get that’ incentive, and no one will complain about a cash reward, but it does tend to get quietly absorbed into regular spending.”
And that, he explains, is where cash starts to lose effectiveness in changing behaviour.“ Cash and cash-based rewards, like gift cards and vouchers, have a place in the mix, but aren’ t hard-working rewards on their own and won’ t fundamentally ›
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