Rising interest rates and the cost of living are testing consumer brand loyalty like never before, as consumers seek better value and limit discretionary spending in increasingly tough economic conditions. difficult.
According to a recent report by McKinsey & Company, 80% of Australian consumers have searched for different brands or retailers over the past 18 months, looking for better value as prices continue to rise.
To combat fickle customer loyalty and shrinking spend, Michael Nguyen, chief marketing officer of Blackhawk APAC Network, said rewarding loyal customers and offering incentives to spend should be an integral part of all brands’ and retailers’ marketing plans. gift cards purchased through the Company’s Corporate Card Store offering. the perfect solution.
New customer research commissioned by Blackhawk Network found that 59% of Australian consumers consider gift cards an appropriate reward for brand loyalty.
Additionally, 52% agreed they were appropriate compensation for solving a problem or problem, while 46% viewed gift cards as an attractive incentive to make a specific purchase.
“Our research found that Australian customers really appreciate receiving a digital gift card as a reward or incentive to stay loyal to your brand,” Nguyen said.
“The flexibility and choice offered by multi-brand or prepaid Visa cards is very appealing. Plus, because digital cards are easily downloadable to a mobile wallet, customers always have access to their reward.
“Research showed that 48% of Australians had even bought a gift card for their own use, as a faster, easier and more secure way to pay for things, manage their expenses or take advantage of promotions or point deals,” he said.
The benefits for businesses go far beyond customer retention and engagement, with the survey also revealing that 75% of customers spend more than the value of the gift card.
According to research, Australians spend an average of 40% more than face value, helping to further increase turnover.
“In the difficult times we are currently going through, we know that rewards and incentives such as gift cards work for brands and make great business sense to help maintain customer loyalty, increase revenue and provide valuable customer engagement and data,” Nguyen said. .
Previous research commissioned by Blackhawk Network that surveyed 100 large Australian companies, primarily in the retail and financial services sectors, indicated that 59% found rewards-based promotions to be effective in improving customer satisfaction. clients.
Additionally, 53% of businesses said that rewards-based promotions also increase customer lifetime value.
For businesses looking to reap the benefits of incorporating gift card rewards or incentives into their marketing activities, Blackhawk Network offers a wide range of branded and prepaid cards through its corporatecardstore.com.au
Corporate Card Store is easy to navigate and allows businesses to quickly purchase digital gift cards to provide instant rewards to customers, reducing wait times for physical card delivery and helping to build loyalty customers and commitment to the process.
Businesses can choose from over 50 branded cards, Visa and Eftpos from popular brands such as Amazon, Myer, Kayo, Gourmet Traveler, Red Balloon, Google Play and many more.
For even greater choice, The Ultimate Gift for card range offers multi-brand gift cards with a wide selection of themed retail brands for individual customers such as Her, Him, Active, Eat, Home, Style and Beauty and Spa.
Gift cards can be purchased in single or multiple volumes, and as digital or physical cards through a safe and secure online process, backed by a global leader in payment solutions.