“bird in hand*” notes from 2013 Shopper Reward Survey #Parago

From Parago’s most recent Shopper Reward Survey, there are findings which should have significant impact on how marketing spending is allocated in the areas of prepaid cards, digital rewards, discounts and extended duration value offers:

  • 2/3 of all consumers still prefer physical prepaid gift cards to digital rewards (e.g. Mastercard/Visa/Discover card vs Amazon gift code)
    • however, for households with $200K+ income, an Amazon gift code is preferred
  • “bricks and mortar” retailer-specific cards (e.g. WalMart, Target, et al) are much less preferred than either Mastercard/Visa/Discover cards or Amazon gift codes
    • the same is true for brand-specific cards  (e.g. iTunes)
  • the higher the reward value, the greater the preference
    • this is true even for lower-value prepaid gift card as compared to instant discount or extended duration value offers of significantly greater value
      • survey examples ranged from 25% to 600%!
    • this is less true for a “proprietary product” consumable
      • single-cup coffee-maker example
    • also less true for lodging industry
      • marketing mix ramifications re:need to understand overall unit-costing, factored for “lost opportunity” costs

View the full * “bird in hand beats two in the bush” report below or at www.parago.com:

Download (PDF, Unknown)

Focused on TBM, Technology Business Management ("run IT like a business"). - 30+ years of experience, in providing IT strategy, process, application, RAMP, hardware, software, network, internet and cloud solutions to financial services, MRD and high technology companies from startup to F500. - 20+ published articles on the intersection of business and technology. - Startup advisor and mentor to a dozen startups, four of which were acquired and one of which is newly-launched (ITconnecter, a Crosswaves Ventures LLC company). - Specialties: IT Technology Business Management (TBM, aka "run IT like a business"), strategic partnerships, technology innovation, solutioning and program/project management (onshore, nearshore, offshore). Technology consulting focused on innovation, built around process, data and integration (cloud, social networking). We use I/TBM financial management best practices to help mid-size and large enterprises ensure they are meeting the needs of their business effectively and efficiently.

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