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Ben Bradley - Blog

Boosting Call Center Response Rates with Gift Card Incentives



While gift card incentives have a fixed monetary value, some believe consumers perceive them to have the same value as cash offers. This is not the case. There are four important factors contributing to gift cards being perceived as having greater value than cash incentives:


When call center personnel offer gift card incentives for brands consumers are already familiar with, marketers benefit from that awareness and have an easier time creating excitement for their program. In addition, since brand gift cards often have a higher perceived value than cash, marketers can reduce the dollar value of the gift card, lowering program costs, while maintaining desired perceived incentive value.


"Cash back on your statement" offers are difficult to separate from the purchase - which results in short-lived value for the marketer. While the consumer may have responded to the offer, but there is no lasting benefit for the marketer beyond that moment in time. With a gift card as the incentive the subscriber has multiple benefits as well as positive branding opportunities (receiving the gift card in the mail, putting the gift card in a wallet, and using the gift card at a retailer or restaurant).


A gift card “justifies” the purchase of products or services that the consumer may not normally buy. In the moment in time that the gift card is accepted by the consumer, the gift card facilitates an indulgence that might be outside the subscriber’s budget (e.g. – the choice of Outback Steakhouse, Olive Garden, the Cheesecake Factory or some other restaurant allows participation in a dining pleasure they may not have otherwise allowed themselves).


The downside of "cash back in the statement" incentives is that they exist in a singular moment in time and cannot be separated from the purchase. The branding value of gift card reward helps boost response and program participation by extending the value of the promotion and of the brand sponsoring the promotion over the period the gift card is redeemed. Then, after redemption, the consumer remembers the offer and the brand being promoted. 


Publish Date: March 8, 2016 7:05 AM




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