Loyalty programs are a great way for businesses to reward their customers for their continued patronage using consumer incentives. Many companies offer customers the option to enroll in a loyalty program by signing up for an account, allowing customers to accrue points and rewards along the way. These benefits often come in the form of discounts, free items, and even gift cards. Depending on the company’s offerings, customers could receive discounts on future purchases or exclusive access to new products before they become available to everyone else.
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Data for today’s episode is provided by Javelin Strategy & Research’s Report:19th Annual U.S. Closed-Loop Prepaid Card Market Forecast
4 Top Reasons for Receiving Consumer Incentives on Prepaid Cards
- 38% received a consumer incentive for a store credit
- 38% received an incentive for a cash back offer from debit/credit card
- 37% received an incentive for an additional purchase
- 34% received an incentive for a rebate
In general, Javelin Strategy & Research expects a robust environment for the prepaid ecosystem. This includes top categories such as in-store gifting enjoying strong trends. Consistent with past years, economic conditions will have a give-and-take effect on several products. Budgetary and inflationary pressure should benefit the areas of transit, nutrition assistance, and consumer incentives, while petroleum and tolls may recede. Products such as campus cards and consumer incentives will continue to rebound after being negatively affected in the 2020-21 pandemic era.
Consumer sentiments remain positive overall, with American buyers showing strong overall belief in the closed-loop market. Javelin research highlights healthy spending patterns in prepaid cards as well as frequency of purchases, with ancillary benefits to retailers when consumer overspend beyond their card balance, giving an extension of revenue opportunities because of the use of a prepaid card.