One of the most common mistakes a business can make when implementing digital rewards programs is thinking that cash – monetary rewards – are going to be a big draw. While this might seem to make sense, in fact monetary rewards are among the least engaging prizes a loyalty program could give out!
Here at Brandmovers, we keep an extensive rewards catalog with plenty of options, including tangible items, personal experiences (like show tickets), digital downloads, and even gift cards… but we almost never recommend cash as a reward. We’d suggest any businesses still using cash as a reward should rethink that choice.
Four Reasons Money Is a Poor Choice for Digital Rewards Programs
- Cash is expensive.
Simply put, there’s no way to get a bulk discount on Jacksons, Grants and Benjamins. One of the keys to having a good ROI on a reward program is to find ways to get your rewards as cheaply as possible, and that’s not possible when you’re giving out real money. This is ironic, considering that:
- Cash feels cheap
From the buyer’s point of view, cash is perceived as a very lazy reward – much like at Christmas. Cash is cold, impersonal, and suggests little or no thought\effort was put into the gift. No one’s going to turn down a free $20, but they won’t get very excited about it either. This means:
- Cash doesn’t build brand associations
We’re not saying that every item in your reward shop should be overtly branded -since that could seem gauche- but they should, in some way, create a positive emotional link between the buyer and your company. Cash can’t do this, even if you send it in a branded envelope. Part of that is because:
- Cash can’t be personalized or customized
There’s an odd trick of psychology here. You’d think that cash is the ultimate in personalized gifts, since it can be turned into anything – but that’s not how most people’s brains work. Telling a customer “You can have W, X, Y, or Z” as a gift will creates a much stronger perception of customized options than simply handing out cash. Simply handing out money feels heavy-handed by comparison.
Brandmovers Builds Superior Digital Rewards Programs