Research Proves People Want Cash Rewards
Posted on Thu, Jan 12, 2012
Take off your banking hat for a moment and think as a consumer about reward programs. What types of rewards programs do you participate in? Why do you participate in them? Is it because you value and appreciate the rewards? Or do you just want to support a company that appreciates and values your business?
Cash Rewards Ranks on Top
Now, putting your banking hat back on, consider this…
In a 2011 poll of over 1,200 consumers from across the country, when asked “what type of rewards they prefer”, an overwhelming majority, 61%, selected cash over anything else.
Cash Rewards Increases Debit Card Usage
“How powerful are cash rewards?” Well, powerful enough to influence account holder behavior in ways that will generate more non-interest income for your institution. In our latest banking opinion poll, 43% of respondents said they would make more purchases using their debit card if they were rewarded with cash for each transaction.
Cash Rewards Increases Income
Not only do consumers just say they would use their debit cards more frequently, it is proven. Institutions that have implemented Pinnacle’s Cash Back Counts Rewards Programs have seen their account holders’ average number of debit card transactions increase by nearly 300%, going from 11 transactions per month to 40. That’s an extra 29 transactions per account holder, per month.
At an average interchange fee of $0.40 per transaction, those extra 29 transactions translate into an extra $12 in revenue per account per month for the institution. For 500 account holders, that’s an extra $6,000 per month delivered to your bottom line!
Who Doesn’t Want More Cash?
As a consumer, if there was a program that would reward you with cash just for using your debit card, wouldn’t you want to participate in it?
As a banker, if you’re able to generate 2-3 times more non-interest income, wouldn’t you be willing to give a small percentage of the interchange income to the account holder?
Want to find out more about our debit card cash rewards programs -- just call us at 866.737.1235. Get the results of our latest National Banking Opinion Poll -- Download it now!
