Based on our experience working with some of the largest telecoms in North America, we'd like to share 5 different ways that MasterCard and Visa prepaid cards can significantly impact sales and marketing efforts.
1. Prepaid cards can retain customers, boost renewals, and prevent churn
Customers that are offered prepaid cards at the time of contract renewal are 2x as likely to remain customers then those who are not. Consumer surveys also show that 60% of respondents prefer prepaid cards over any other type of reward, including retail gift cards, rebates, and price discounts.
For upgrades, contract renewals, or customer appreciation, offering a prepaid card is a great way to nudge your subscribers in the right direction. It shows that they are appreciated, that their business is valued, and that giving back to them in a meaningful way is important.
Offering them a reward that is secure and reliable also builds trust. Prepaid cards are issued by almost all the biggest banks in North America and run on the MasterCard and Visa networks, which offer zero liability and fraud protection. With prepaid cards, customers know that they are receiving a quality reward.
2. Custom branding indicates a premium product, and sparks conversations
Custom prepaid cards are more than just plastic; they offer a customized experience.
Not only does it give the customer instant access to money they can spend almost anywhere, it also makes them feel valued. This isn't a discount coupon, or redeemable points rewards, or a telephone call offer. It's cash on a card, and it can be spent immediately on anything. Plus, when a customer makes any purchase with a prepaid card, they associate that purchase with the company that gave it to them, particularly if the prepaid card is custom-branded.
In essence, cardholders become ambassadors for your brand, carrying around a little conversation starter. Next time they go to pay for something at a restaurant or a grocery store, questions inevitably come up: "Woah what kind of card is that?" "Who did you get it from?" "How do I sign up?"
3. Sales people sell more with prepaid card rewards
It's no surprise then that many of our clients (including some telecom giants), send their field reps out with $0 reloadable prepaid cards in hand.
We have found that reps close 40% more deals when they offer a prepaid card to prospects to incent purchases. The way it works is simple: if the prospect subscribes to a service, $50 will get loaded onto their prepaid card. If not, they can throw out their empty plastic Visa card. The card is a tangible incentive, and significantly increases close rates.
Many of our clients also use prepaid cards to reward employee achievements. Reach your monthly quota? Managers can easily add funds to your reloadable company prepaid card that can be spent anywhere, at anytime. Sales reps that are offered prepaid programs on average sell 36% more than their unrewarded counterparts. When compared to those rewarded with cash or other incentives like promotional products, they still sell 20% more.
4. Increase engagement with your customers and prospects
Trying to get customers to participate in a survey? Perhaps you want them to subscribe to email updates, or are promoting a new product and would like to increase awareness. Do you regularly engage in contests and giveaways?
Consider prepaid cards for all of the above. The 2015 Canadian Incentive and Rewards Trends Study shows that people prefer prepaid MasterCard and Visa cards more than retail gift cards, experiential events, and merchandise.
Prepaid cards are a cost effective solution, they are equally valued across all demographics, and since they can be used anywhere Visa is accepted, customers can pay for whatever reward is most meaningful to them.
5. Executing and managing prepaid card programs is easy
Integrating prepaid cards into your existing marketing and sales programs is easy. Since all card funding is tracked in reports, ROIs can be calculated by managers who want to see which programs are allocated funds, which cards are activated and loaded, and which cardholders are most active.
Plus, with many customization options available, companies can design their own cards and collateral to suit the needs of their program.