11 Reasons Why Your Business Needs To Make The Switch To Prepaid

In my most recent post, I focused my attention on the numerous benefits to being a prepaid cardholder. From safety, security, and worldwide acceptance to financial freedom, budgeting control, and cost savings, there are a lot of advantages to owning and using a prepaid card! Now, I turn my attention to the business side of things.

Here are 11 reasons why your business needs to make the switch to prepaid cards:

PREPAID CARDS ELEVATE YOUR BRAND

1. A branded prepaid card offers a unique opportunity for businesses and marketers because they enable customers to have real, in-person experiences. A card that can be reloaded and continuously refunded allows your customers to use their rewards over and over again, which means they will continue to connect with your brand.
2. Prepaid cards can be custom-designed to include your corporate logo, colours, and unique branding to improve your company’s marketability and raise brand awareness among your cardholders and customers.
3. A branded prepaid card opens up a variety of opportunities to improve customer retention and loyalty, including promotions, rebates, referrals, VIP programs, and other incentives.

PREPAID CARDS GROW LOYALTY, BOOST ENGAGEMENT, & INCREASE CUSTOMER SPENDING

1. Prepaid cards lead to an increase in spending and foot traffic. 40 percent of consumers will spend more money on an expensive product because their experience was personalized. Existing customers are 3 to 10x more likely to buy than a cold lead. They are 50 percent more likely to buy new products and spend 33 percent more than new customers.
2. A rewards program not only brings customers, but it can also help speed up the loyalty “life cycle,” making new or first-year customers act like fifth or even tenth-year customers–the company’s most profitable group.
3. Prepaid cards are a cost-effective way to motivate customer behaviours, pushing customers to make specific purchases, test drives at auto dealerships, participate in surveys, attend events, and more.

PREPAID CARDS OFFER IMPORTANT CUSTOMER DATA & REACH NEW AUDIENCES

1. In the incentives industry, there are massive amounts of data available to businesses, and in the digital age, collection and analysis of this information have never been easier. Brands can learn more about their consumers who use rewards, and this data will help drive personalization. The ability to track redemption and user engagement offers great insight into customer behaviour.
2.  Prepaid cards are a great way for organizations to disburse payments to people who don’t have access to bank accounts.

PREPAID CARDS ARE THE INCENTIVE OF CHOICE

1. Open-loop prepaid cards are the fastest growing form of electronic payments and are the top choice for a gift or reward, according to a CPPO survey. 79 percent of Canadians say they would like to receive an open loop incentive card.
2. 95 percent of Canadian say that they are satisfied with incentive cards, which is the highest satisfaction rate out of all payment tools.
3. 66 percent of Canadians are concerned about the security of their credit and debit cards for online purchases, however, only 28% of Canadians expressed similar concerns about using incentive cards online.

Prepaid cards can help you keep existing customers, entice new customers, raise brand awareness, and improve the ways you interact with your end consumers. Stay tuned for my next post, where I give you 11 MORE reasons why your business needs to make the switch to prepaid.