The Battle of Points vs. Cash
We’ve all heard the saying that cash is king—but cash doesn’t always win in the battle between cash and incentive rewards. In fact, the Incentive Research Foundation found in their latest industry outlook that gift card and merchandise non-cash rewards spending increased in 2022. In both North America and Europe, the outlook is positive for 2023.
How does the value of non-cash rewards stack up against a cash bonus? The answer lies within your incentives program.
1. Quick payout for instant redemption
Incentive programs offer users the ability to instantly receive an award or points instantly once a milestone is achieved. Once the points hit the user’s account—they have the autonomy to redeem instantly, or let points accumulate for something more.
Cash bonus payouts may take longer, with additional administrative steps. Our all-in-one rewards program solutions make it simple to automatically award points once criteria is met.
With easy access to our robust eGift card and merchandise mall, it’s simple for users to explore available rewards and track points to spend on desired merchandise, eGift cards, or travel experiences.
2. Beat inflation with point payouts
With point rewards, your audience can redeem for a variety of merchandise or eGift cards without having to adjust a personal budget. In fact, points make it possible to travel, or splurge on items that might otherwise be on hold, due to inflation or other life changes.
Values of point rewards are comparable to cash incentives. Redeeming points for eGift cards to your department store of choice can provide a similar relief of resources.
3. Incentive programs transcend rewards
The list of benefits is lengthy. We’ve shared this before, but it’s worth repeating:
The Incentive Research Foundation (IRF) recently surveyed 1,500 respondents on their preference for reward choices, gauging interest in everything from paid time off, to company logoed merchandise. Interestingly, 9 of top 10 reward preferences in this study can be provided through points. (And in case you’re wondering, no, they don’t really want plaques or logoed shirts. Those ranked last.)
So what is appealing about points? For starters. …
- Points are both currency and choice.
- Points keep every program modern.
- Points keep every program relevant.
- Points are still personal. (Hint: It’s all in the delivery!)
- Points can ensure the award is commensurate with the achievement or effort.
- Points eliminate the confusion of the prize, if you’re participating in multiple campaigns.
- Points reward, and recognize, but also drive loyalty (that’s right – they accrue).
Your incentive program should be about more than just rewards—it should also be utilized as a tool to connect with your audience.
House targeted communications, internal marketing materials, and manage your campaign all in one place with a rewards program. With Amplify®, our team can help create a custom reward strategy based on your unique needs, paired with a robust rewards mall with something for everyone.
Contact us today for a demo or to discuss how we can help amplify your sales, customer, and employee incentive programs.