U.S. inflation hit a 40-year high in June. The prices for food, gas, and rent are skyrocketing.
According to Moody’s Analytics Chief Economist Mark Zandi: “The typical American household now needs to spend $493 more per month to buy the same goods and services they did at this time last year.”
What does this mean for your digital rewards program? For starters, now is an excellent time to take stock of the kinds of rewards you’re offering. Recipients are looking for ways to find wiggle room in their budgets — and your rewards may be more attractive to them.
To ensure your digitals rewards program is still incentivizing prospects, customers, employees, research participants, or others to take action, here’s what you need to do.
For obvious reasons, it’s a good idea to make sure your digital rewards program have plenty of choices for the items people need and use every day: groceries, gas, and household staples. Gift cards for big-box retailers such as Walmart are especially attractive because recipients can use them to get just about anything they might need.
READ MORE: 9 Reasons a Digital E-Gift Card Is Better Than a Physical Card
With $10 gift cards not going as far as they used to, it’s critical to make sure you’re offering the right amount with the right retailer. These are rewards, after all, not coupons.
For example, if you used to give a $10 reward for a fast-casual lunch out, increase that amount to $20 so they can get lunch at no cost. Consider bumping up the amount of all your lower-value gift cards so people can actually use them for more than a discount.
When the budget for your digital rewards program is a little higher, like for employee holiday gifts, think about offering an experience that many people can’t spend money on right now.
With everyone tightening their belts, eating out or traveling are often the first items to be cut out of their budget. Consider giving gift cards for nice restaurants, hotels, airlines, and other luxuries. Again, just make sure the value is appropriate — a $50 gift card at Ruth’s Chris won’t go far.
Believe it or not, among the most popular reward options claimed through BHN Rewards in 2022, there were six charitable e-donations in the top 20.
Even during tough economic times, there are people who are still doing OK, and they’re often even more willing to give back because they know others are likely struggling. Helping them do that is a great look for your company, too.
Did you know that most recipients prefer prepaid cards of any value to all other possible reward options?
The flexibility of a prepaid Visa or Mastercard makes it an ideal choice for your digital rewards program, especially these days. Recipients prefer having choices, and a prepaid card gives them all sorts of spending options.
Lastly, any digital rewards program need regular fine tuning, especially when consumer trends are changing.
Sending a rewards preference survey can help ensure you are incentivizing your recipients in the right way to ensure the success of your digital rewards program.
Did you know that BHN Rewards automatically gives you a 100% refund when a gift goes unclaimed? These days, every dollar of your budget counts. Learn more when you take a product tour.
BHN Rewards puts the power of digital rewards to work for marketers, researchers, and HR managers. Don't forget to check out all the great content in our Resources section!
BHN Rewards puts the power of digital rewards to work for marketers, researchers, and HR managers. Don't forget to check out all the great content in our Resources section!
