How Digital Incentives Drive Customer Loyalty

Onbe - Expanding Payments Choice - March/April 2022 - A fresh look at how merchants can leverage incentives such as digital discounts to drive customer conversion

Incentives are an essential part of retail advertising, consisting of discounts, loyalty programs and other rewards for making purchases that encourage shoppers to buy more. Coupons for free products make customers 98% more likely to buy, with raffles increasing the likelihood by 39% and contests by 42.5%. Discounts, one of the most popular sales incentives, make customers over 75% more likely to make a purchase, with actual take-up ranging from 5% to 80%.Onbe - Expanding Payments Choice - March/April 2022 - A fresh look at how merchants can leverage incentives such as digital discounts to drive customer conversion

Onbe’s Future of Payments Research 2022 Survey found that 74% of consumers prefer to make payments using digital methods, especially those of younger generations. This means that implementing digital discounts and incentives is crucial for businesses. A recent study found that over 70% of customers prefer dealing with businesses digitally rather than on paper, meaning the more online a business can be, the more customers it can gather. Digital discounts can also to offer businesses faster, more actionable insights into purchasing preferences and company revenue.

In the last Expand the Payment Choices Playbook®PYMNTS examines how companies incentivize customers through discounts and other promotions, the factors that drive customers towards digital payments, and how implementing digital incentives can help companies maintain a competitive edge in a cluttered environment.

Around the payment choice space

Onbe - Expanding Payments Choice - March/April 2022 - A fresh look at how merchants can leverage incentives such as digital discounts to drive customer conversionConsumer payment preferences are constantly changing, but digital has quickly taken center stage. A recent investigation d’Onbe found that 77% of consumers prefer making digital payments over cash or paper checks, and 65% believe digital payments are more secure than their traditional counterparts. Nearly a third of respondents said they plan to use cash less frequently or give it up altogether in the next year, with just 8% planning to spend more cash.

Digital payments are also increasingly popular with businesses, which are leveraging these payments for payroll to ensure they pay workers faster. A recent study found that around 50% of large construction companies in the UK now pay their sub-contractors in 30 days or less, with the average pay time improving by four days in the last six months. Payroll times have improved by 15 days since the first survey was conducted in 2018.

For more on these and other stories, visit Playbook News & Trends.

Torrid on Improving Customer Loyalty with Digital Incentives

The fiercely competitive world of online and in-person retail forces every player in the space to do everything possible to stand out from the competition, and discounts and incentives play a crucial role in this. Over the past few years, customer demand for these incentives has become increasingly digital as their shopping activities have moved online.

In this month’s feature, PYMNTS spoke with Neal Cotter, director of customer and insight advocacy at the plus-size clothing retailer Torridon how it delivers its incentives to this growing digital audience.Onbe - Expanding Payments Choice - March/April 2022 - A fresh look at how merchants can leverage incentives like digital discounts to drive customer conversion

How digital payments improve discounts and incentives

Discounts, incentives and other rewards are a key tool in retailers’ arsenals to boost conversions and maintain a competitive edge in a crowded marketplace. However, customers are increasingly demanding which discounts and incentives are worthwhile, as their payout preferences have become more specific. Digital payouts are quickly becoming the norm, and a customer who notes that a rebate can only be paid by check is less likely to make a purchase.

This month’s PYMNTS intelligence explores shifting customer preferences towards digital discounts and incentives and how merchants can leverage these systems to drive customer conversion.

About the playbook

The Expand the Payment Choices Playbook®a PYMNTS and Onbe collaboration, explores the latest in the world of payment choice, including how companies incentivize customers through discounts and other payouts and the factors driving customers towards digital payments.

Joseph P. Harris