Promotional Programs

Consumer promotions are used to either attract new customers over your competitors, increase the profitability of existing customers through additional products and services purchased, or decrease the cost to maintain that customer. The latter promotion type has become much more popular in recent years as businesses are finding that they can increase their profitability more easily by cutting costs rather than just focusing on obtaining new clients.

For instance, removing paper billing statements can save an organization up to 3% of revenues or 15% of profitability, but the majority of consumers will not switch to online billing for the good of the company or the environment unless they have an incentive to do so. When factoring in direct and indirect costs, if a paper billing statement costs $4.00 per bill each month, providing customers a $15 reward card to switch is a good investment that could save you $33 per customer per year.

Our Solution

We have provided prepaid reward cards for hundreds of consumer and client promotions. Typically the lowest value on a promotional card is $10. Anything less than that amount is usually not motivating enough to get a customer to take action. The most common types of promotional programs we see are consumer services that are highly competitive such as energy and telecom offerings, or B2B client programs.

Here are a few successful promotional initiatives:

PROMOTION	REQUIRED CUSTOM ACTION	COMPANY BENEFITS
Paperless Billing	Agree to receive all of their monthly bills online	Reduce direct costs associated with paper, production, and mailing and indirect costs such as customer service & accounting reconciliation
Prepay for Services	Customer pays for several months or a years worth of service	Increased cash flow upfront, reduce late payments, increase client retention
On-time or Rewarding Payments	For customers slow to pay or not paying. Provide a reward to get them to settle up or pay on-time	Increase cash flow, decrease accounting costs and collection costs
Service Upgrades or Extensions	Opt in for additional services or contract extensions	Increases revenue and customer loyalty
Rewarding Purchasing Habits	Encourage increase in purchase quantity or the frequency of which the purchase (primarily for B2B channels)	Increase cash flow and revenue
Viral Marketing Promotions/Contests	Get your customers to spread the word through social media & other outlets through creative contets	Cheaper marketing, build customer loyalty, attract new customers
Customer Surveys	Fill out online questionnaire	Better client data for future marketing campaigns