Incentives and Rewards Are Key to Consumer Banking Decisions
Rennhack Marketing Services (RMS) has announced the results of its 2007 ConsumerTrac™ research, an annual survey that helps define which retail banking incentives have the most appeal to consumers. According to RMS, "sixty percent of this year’s participants said a free gift makes a difference in their banking decision. Eighty-three percent still prefer instant gratification, or a gift given on the spot, especially in comparison to gifts sent to the home or “electronic change jar” programs."
“The results of the 2007 ConsumerTrac™ survey confirmed the appeal of quality incentives in winning customers, and showed that rewards programs are becoming more attractive,” said Leo Vassar, vice president of sales for RMS. “Of course, factors like interest rates, free checking and convenience remain most important when making banking decisions, but we’ve found more people are interested in branded gift incentives, and feel they deserve to be part of a rewards program that offers the same. This information is key to helping banks and credit unions understand the tie-breaker that will win over, or keep, that sought after account.”Brands held strong in this year’s research, which showed 78 percent of consumers consider them in purchasing a product. Additionally, ConsumerTrac™ showed $10 to $15 gift options had perceived values ranging from $25 to $90, or two times to five times their cost basis. Consumers perceived values of the $20 to $50 options as multiples of cost as well. Further determining the cash versus gift issue, consumers said several products beat $100 cash, though they still cost significantly less than this perceived value.
According to Gordon Abram, COO of RMS, these results reconfirm that offering branded merchandise as instant gratification gifts or through rewards programs can drive acquisition and retention while maximizing the client’s marketing spend.
“RMS’s 2007 ConsumerTrac™ research clearly shows that the right branded gift with the right perceived value will drive desired consumer response and lower costs,” Abram said. “This reconfirms our commitment to offer gifts consumers not only want, but will also respond to. Without response to your incentive offering or rewards program, you will not see the difference to your bottom line.”
ConsumerTrac™ also found the cost to get your customers to become your sales agent, or the “refer-a-friend” price level, was placed at more than $60 perceived value. To win this referral-based business, a bank can either offer cash at this “refer-a-friend” level, or opt for a branded gift to achieve the same results and lower its marketing spend.
For further information on RMS’s 2007 ConsumerTrac™ research, or to request this year’s ConsumerTrac™ gift catalog, visit www.rennhack.com.
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