Posts Tagged incentives
Cash incentives are preferred credit card freebies
According to Mintel Comperemedia, cash in the credit card industry is becoming the enticement of choice for membership, as 23% of credit card offers in January-April 2011 included an additional cash incentive, compared to just 1% during the same period in 2007. 59% of offers for new credit cards in the first four months of the year promoted some form of additional incentive to encourage potential applicants to sign up for a card, compared to 30% during the same period in 2007. Miles and points are still the most popular incentive, with 25% of offers during the period luring potential customers.
During the first quarter of 2011, more than 1.4 billion offers were sent to consumers, compared to about 825,000 just a year before, the study found.
Andrew Davidson, senior vice president at Mintel Comperemedia, concludes that “… the incentive is so attractive that consumers may as well apply for a card to cash-in on its incentive regardless of whether they have any serious intent to use the card in the long term… ”
Chase gives $300 as a cash incentive in some offers for its Freedom card and 100,000 bonus miles in offers for its British Airways Visa Signature card-enough for two transatlantic round-trip tickets, or four domestic round-trip tickets, Davidson notes.
Posted by eBrand Media Research Department in Trend Tracker on June 24th, 2011
eBrand Media Research: Advertisers cutting customer incentives from budgets
According to the 2009 Promo Premiums and Incentives survey from Promo Magazine, 38.6% of the companies polled in this year’s survey said they offer a promotional incentive program to customers or sales prospects, down slightly from the 42.1% who ran such programs last year.
That slippage in promotional program offerings was echoed through three of the four industry verticals tracked in the survey:
* 48.6% of goods manufacturers polled in 2008 ran a customer incentive program, but this year, only 42.4% of those respondents said the same. (9% in this category “do not know”)
* Retailers offering customer incentives declined to 50% of respondents this year from 52.9% in the last survey
* Marketing agencies offering such programs slid from 34.3% in 2008 to 31.9% this year
* Providers of branded services showed a slight increase in customer incentives in this year’s survey, up to 50% from 47.5% last year.
* 60% of those with no current incentive program for customers said they had no plans to offer one in the next year, says the report. 17% would launch a premium program, and 22% are undecided. A vertical look at those who say they’ll institute such a program in the coming year shows that goods manufacturers dominate (25%), followed by retailers (21.4%).
The largest proportion of respondents to this year’s Promo P&I Survey (15.5%) said they expect to spend less than $5,000 on customer promotions this year, comparable to last year’s result of 13.6%. However, while the 2008 P&I Survey found only 6.4% forecasting $5,000 to $24,999 for premiums, this year the $5,000 to $24,999 category almost doubled to 11.8%.
And marketers expecting to spend $25,000 to $99,999 more than doubled to 6.4%, equal to the percentage who expect to spend nothing this year.
Posted by eBrand Media Research Department in Marketing, eBrand Media on September 17th, 2009
Recent study indicates gas savings are going to…groceries! Groceries (coupons) as a remarketing or new purchase incentive?
By Tom Polanski, EVP, eBrand Media and eBrand Interactive
And why not, I ask you? Extraordinary times require extraordinary actions. It’s clear that people are eating out less frequently, maybe its worth testing to determine whether offering a couple of top quality steaks will prove to be a more attractive, and unique, incentive than what we’re ordinarily offered by merchants.
When going fishing, remember to bring the fish their favorite food.
According to the results of nationwide research from retail analytics firm Precima, groceries are the top item on which U.S. consumers are spending their savings from lower gas prices, ahead of putting the money in savings, holiday gift buying and paying off credit cards.
Of the 3,013 consumers, nationally representative of U.S. grocery shoppers, who were asked to choose from a list of ways they use money saved on gas:
48% said they’re spending it on groceries
42% said saving
37% holiday gift buying
30% paying off credit cards
10% entertainment
14% said other
Posted by Tom Polanski in Trend Tracker on January 15th, 2009