Businesses today have opportunity to use digital incentives to more effectively drive consumer and employee behaviors
Global branded payments provider Blackhawk Network released new research conducted in partnership with Mastercard that found open-loop digital incentives are preferred rewards—particularly among younger generations and mobile-minded Americans—when recipients want to receive rewards quickly or use them online. With 63% of Americans surveyed working remotely right now2, digital incentives also help employers reach employees separated geographically to drive engagement, provide support and offer encouragement.
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Digital incentives that are open-loop have a major network logo like Mastercard on the face of the card and can be used wherever those networks’ debit cards are accepted. Digital incentives can have several key features that provide added value for recipients at no cost to the incentive program sponsor, including the ability to be added to digital wallets allowing the recipient the freedom to redeem online or in-store, the option to be converted to plastic cards if the recipient prefers and the potential to provide recipients with a portion of their spend back when they shop at select merchants.
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“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 home2 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.”
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