Research reveals how incentive programs that leverage “awards in the form of money or tangible awards” have the power to “increase performance by an average of 22 percent.” The impact is even more dramatic when we’re incentivizing teams of people versus individuals [source].
Whether you’re looking to motivate employees to reach (or exceed) certain goals or desire to foster customer loyalty, financial incentives are extremely effective. They are especially potent when the target sees “a clear and immediate causal link between an individual action and a desired outcome” [source].
One widely-spread way to motivate audiences by monetary consequences of their actions is rebates. Car-markers, manufacturers of home appliances, retail corporations, and many others have been using this tactic of retroactive refund of the customer’s money to incentivize sales from as early as the 19th century [source]. The following LG promotion is an exemplary case of a rebate as a monetary incentive.
Another manifestation of the same idea surfaced towards the end of the 20th century and did so in the form of cashback. Here we are not referring to the money that you withdraw from your debit card when using it to buy something, but specifically to your own cash that you can receive back when shopping somewhere. See the Capital One example below.
The benefits of cashback are obvious, but so are the limits of the traditional card-based cashback.
First of all, it is always (and often for the larger part) tied to re-sharing the bank’s merchant fees and is, therefore, doomed to stay in low single-digit ranges (because average card processing fees range between 2.5% and 3.5%). Secondly, card-based cashback always calls for a relationship with a bank or a credit card issuer, increasing the entry barriers for many.
But what if there was a way to make higher cashback possible and without having to issue or accept credit (or debit) cards as a method of payment?
Enter Loyalize and our “rewards as a service” (RaaS) solution.
The idea behind Loyalize is, actually, quite simple: allow companies and organizations to make cashback available through them. Some businesses use our solution to improve people’s loyalty to them, others – to present their audiences with a value-added service (beyond their core offering). Whatever it is that wish to enhance through rewards, Loyalize lets you leverage our ability to offer cash back across nearly 6,000 online retailers throughout the U.S. (with cashback going as high as 40%).
There is no necessity for you to establish all these individual B2B relationships or implement any respective sales tracking. No software installation is required (as everything is handled via online API calls) and neither is there a need to “reinvent the wheel” of user-level reporting. Our relationships and technology will power it all for you; and what’s even sweeter is that early adopters are now guaranteed to enjoy our waived setup fees and no ongoing costs.
Contact me personally and I’ll be happy to discuss the details with you. Don’t let this opportunity to incentivize your audience by online cashback slip away!