In an increasingly competitive market, with high price sensitivity and lack of loyalty, it is becoming more and more important for companies to differentiate. In order to gain a competitive edge with both customers and employees, many companies today consider incentive programmes to be an essential part of their marketing arsenal.
You may think that cash is an easy reward option - if polled, people will say that cash is what motivates them the most. After all, cash has universal appeal and the recipient can use it in any way they wish. This is true of course, but cash blends in with other income and is more often than not used for more mundane purposes, such as paying for shopping or a credit card bill; rarely is it used for a personal luxury. The point is, to get your customers to work towards something they “want”, not necessarily what they “need”. They will get more excited about something that is special or extraordinary to their normal life and then associate that with your brand.
Research and practical experience has shown that non-cash rewards of the same value create a greater emotional response and higher levels of motivations and happiness; they create memories that “generic” cash just can’t.