Rising interest rates and cost of living expenses are testing consumer brand loyalty like never before as consumers seek better value and restrict discretionary spending in increasingly tougher economic conditions.
According to a recent McKinsey & Company report, 80 per cent of Australian consumers have sought out different brands or retailers in the past 18 months, seeking better value as prices continue to rise.
To combat fickle loyalty of customers and decrease in spending, Blackhawk Network Marketing Manager APAC, Michael Nguyen said rewarding loyal customers and providing incentives to spend should be an integral part of all brand’s marketing plans, and gift cards purchased through the company’s Corporate Card Store offer the perfect solution.
New customer research commissioned by Blackhawk Network found that 59 per cent of Australian consumers found gift cards an appropriate reward for brand loyalty.
Furthermore, 52 per cent agreed they were an appropriate compensation to resolve a problem or an issue, while 46 per cent saw gift cards as an appealing 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 remain loyal to your brand,” Mr Nguyen said.
“The flexibility and choice offered by multi-branded or pre-paid Visa cards is very appealing. Further, with digital cards being easily downloadable to a mobile wallet, customers always have access to their reward.
“The research showed that 48 per cent of Australians, had even purchased a gift card for their own use, as a faster, easier and safe way to pay for things, to manage their spending, or to take advantage of promotions or points offers,” he said.
The benefits for businesses go well beyond generating loyalty and customer engagement, with the survey also finding that 75 per cent of customers spend more than the value of the gift card.
According to the research, Australians spend an average 40 per cent more than the face value, helping to further increase sales revenue.
“In tough times as we are experiencing now, we know rewards and incentives like gift cards work for brands and make great sense from a business perspective in helping to maintain customer loyalty, increase revenue and provide valuable customer engagement and data,” Mr Nguyen said.
Previous research commissioned by Blackhawk Network that surveyed 100 leading Australian companies, largely in the retail and financial services sectors, reported that 59 per cent found reward-based promotions effective in improving customer satisfaction.
Furthermore, 53 per cent of businesses said reward-based promotions also increased customer lifetime value.
For businesses wanting to reap the benefits of incorporating gift card rewards or incentives into their marketing activities, Blackhawk Network offers a vast array of branded and pre-paid cards via its corporatecardstore.com.au
The Corporate Card Store is easy to navigate and enables businesses to quickly purchase digital gift cards to provide instant rewards for customers, reducing wait times for physical card delivery and helping build greater customer loyalty and engagement in the process.
Businesses can choose from more than 50 branded, Visa and Eftpos cards from popular brands including Amazon, Myer, Kayo, Gourmet Traveller, Red Balloon, Google Play and many more.
For an even greater choice, The Ultimate Gift for card range offers multi-branded gift cards with a large selection of retail brands that are themed for particular customers such as Her, Him, Active, Eats, Home, Style, and Beauty and Spa.
Gift cards can be purchased in single or multiple volumes, and as digital or physical cards in a safe and secure online process, backed by a global leader in payment solutions.