Incentives are a vital part of retail advertising, consisting of rebates, loyalty programs and other rewards for making purchases that encourage shoppers to buy more. Coupons for free products make customers 98% more likely to buy, with sweepstakes increasing the likelihood by 39% and contests by 42.5%. Rebates, one of the most popular means of sales incentive, make customers more than 75% more likely to make a purchase, with their actual participation rate ranging from 5% to 80%.
Onbe’s Future of Payments Research 2022 Survey found that 74% of consumers prefer to make payments by using digital methods, especially those from younger generations. This means that implementing digital rebates and incentives is crucial for businesses. A recent study found that more than 70% of customers prefer to deal with businesses digitally rather than deal with paper, meaning that the more online a business can be, the more customers it can gather. Digital rebates can also offer businesses quicker, more actionable data on shopping preferences and business revenue.
In the latest Expanding Payments Choice Playbook®, PYMNTS examines how businesses incentivize customers through rebates and other promotions, the factors that drive customers to digital payments and how implementing digital incentives can help businesses maintain a competitive edge in a crowded environment.
Around the Payments Choice Space
Consumers’ payment preferences are constantly evolving, but digital has quickly come to the forefront. A recent survey from Onbe found that 77% of consumers prefer making digital payments over cash or paper checks, and 65% thought digital payments were more secure than their traditional counterparts. Nearly one-third of respondents said they plan to use cash less frequently or abandon it altogether next year, with just 8% planning to spend more cash.
Digital payments are also growing more popular with businesses, which are leveraging these payments for payroll to ensure they pay workers more quickly. A recent study found that approximately 50% of large construction firms in the U.K. are now paying subcontractors in 30 days or less, with the average pay period improving by four days in the past six months. Pay periods have improved by 15 days since the survey was first conducted in 2018.
For more on these and other stories, visit the Playbook’s News and Trends.
Torrid on Improving Customer Loyalty Through Digital Incentives
The intensely competitive world of online and in-person retail forces every player in the space to pull out all the stops to stand out above the competition, and rebates and incentives play a crucial role in this. In the past several years, customers’ demand for these incentives has grown increasingly digital as their shopping activities have moved online.
In this month’s Feature Story, PYMNTS talked with Neal Cotter, director of customer advocacy and insights at plus-size clothing retailer Torrid, about how it is catering its incentives for this growing digital audience.
How Digital Payments Are Improving Rebates and Incentives
Rebates, incentives and other rewards are a key tool in retailers’ arsenals for driving conversions and maintaining a competitive edge in a crowded marketplace. Customers are growing pickier about which rebates and incentives are worth it, however, as their disbursement preferences have grown more specific. Digital disbursements are quickly becoming the norm, and a customer who notes a rebate can only be paid via check is less likely to make a purchase.
This month’s PYMNTS Intelligence explores the shifting customer preferences toward digital rebates and incentives and how merchants can take advantage of these systems to help drive customer conversion.
About the Playbook
The Expanding Payments Choice Playbook®, a PYMNTS and Onbe collaboration, explores the latest in the world of payments choice, including how businesses incentivize customers through rebates and other disbursements and the factors that drive customers to digital payments.
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