It should come as no surprise that consumer confidence has taken a hit over the past few months. Reports indicate that while concerns about financial health are improving, 65% of the global population are still concerned, while 32% are severely concerned – and it’s expected this unease will continue into the foreseeable future.
As people tighten their budgets and re-evaluate their spending, the age old saying “cash is king” has become increasingly relevant - for both businesses and consumers. As such, cash rewards, particularly those with flexibility, will be highly valued. In this new normal, these kinds of rewards may be the key to drive spending and loyalty with your brand.
Drive long-term sales and loyalty
Although the idea of a quick win may be appealing, short-term sales driving tactics such as heavy discounts can often do damage to a brand and are not a sustainable long-term strategy. While customers are concerned about cost, what they’re ultimately looking for is value. Rewards are a great way to add value to your offer without having to reduce your price point and potentially compromise your brand integrity.
In addition, rewards have the added benefit of building ongoing loyalty and encouraging repeat purchases. In fact, as report conducted by Blackhawk Networks found, 71% of Australians who receive a special offer are encouraged to spend more with the brand, 72% are encouraged to spend more often and 70% say their loyalty to the brand increased*. Long term relationships are not only an important part of increasing brand value, but one of the most sustainable means of ensuring ongoing cash flow when times get tough.
Tailored promotions give your brand a point of difference
Rewards and incentives can be used to shape a promotion that is not only valuable, but relevant to your audience. Humans are emotional beings, so creating a promotion that taps into a human insight or demonstrates you understand your audience will be most compelling. Plus, it’s an opportunity to get creative and have a bit of fun!
If you’re stuck for ideas, here are a few starting points for shaping a promotion that’s relevant in today’s landscape:
Though we may not have been spending, the last few months have provided us with ample opportunity for online window shopping. As consumer confidence begins to recover, it’s expected that Australians will be jumping back into their favourite online retail sites with an anticipated 47% increase in online shopping. Edge offers the biggest range of digital rewards which can be redeemed both in-store and online, providing an excellent opportunity to shape a promotion to give your customers a dose of the retail therapy they’ve been craving.
The consumption of live sport is a key component of the Australian culture, and one which has been greatly missed. Though it may still be a while before our weekend sporting rituals include attending live matches or watching games in crowded pubs, our pent-up demand for sport can be facilitated through sports streaming services. Give your customers the chance to indulge in the thrill of the live sport they’ve been missing with a tailored promotion built around a Kayo gift card.
Food and dining
Over the past few months we’ve discovered how many experiences can be replicated online. But one thing which really doesn’t translate is the experience of going out to a restaurant. 34% of Australians have been missing their restaurant dining experience and 23% have been missing the opportunity to support their local restaurant scene. As restrictions begin to relax, one of the first things people plan to do is go out for a great meal and Edge's Good Food Gift Card is the perfect reward to build a promotion around.
While things may never return to what we know as “normal”, as we enter ‘the new world’ there will be opportunities for people to engage in the experiences they’ve been missing. Price will be important, but brands that can provide value will be the winners.
Talk to Edge today about how we can help you shape a promotion to engage your customers and reach both your short and long term goals in today’s landscape.
*Blackhawk Network Global Payments Report, 17/04/2020