Are Your Business’ Incentives Driving the Right Behaviors?

We can’t fully control another person’s behavior. However we can certainly influence it by structuring incentives and rewards in a way that considers both the individual and the way the incentive is presented. By doing this it’s possible to influence others in order to drive your preferred behaviors.

There are different methods and techniques to drive behavior, but the most effective motivation comes from offering a ‘carrot’, not a stick. In other words, offering something that will benefit either your employees or your customers, to encourage the right behaviors thereafter.

Behavioral Economics tells us that an incentive must offer a reward value that is similar to the value of the performance being delivered. What you do to drive behaviors is the science, and choosing the right reward can be an art. Let’s take a deeper dive:

Driving Customer Behavior Through Incentives

There are a number of opportunities to incentivize customers. It might be encouragement to make a purchase of a particular service, complete a feedback form, or open an account. There are also situations where disbursing money to customers is the best motivator, such as returning deposits and making refunds.  

But what behaviors are you looking to drive? One obvious answer is for them to become repeat customers. But there can be more to it than that. 

Turning buyers into loyal customers is great, but you can take it a step further and turn those loyal customers into advocates for your business.

Use incentives in the right way, and you’re more likely to be the first brand that comes to mind when they’re asked to recommend a business in your field to family and friends. Giving an exceptional customer experience across all touchpoints, not just in the delivery of your products and services, is vital for brand awareness and loyalty. 

Research shows that increasing customer retention by just 2% has the same effect on your business as lowering costs by 10%.

Prepaid cards take the idea of ‘top-of-mind awareness’ even further, because not only are you using a method of incentivizing customers that they appreciate, you can customize your cards with your own business’ brand. Top-of-wallet equals top-of-mind!

Driving Employee Behavior Through Incentives

No matter how big your workforce, being able to drive performance is a crucial concern, whether it’s your sales force or any other team of employees. The behaviors you’re looking to drive among employees will be focused on achieving business results, so it’s important you get the incentive right.

The question is, what will you want to incentivize, excellence, improvement, or both? Of course they might be one and the same, but there’s a chance they may be completely different for your team. Whichever one is more relevant to your employees, the right incentive program can be just as effective for both.

Whether you’re looking to encourage employees to meet targets or exceed them, the best incentive to use will be one that they actively desire. 58% of employees say money is the most important factor when it comes to choosing an employer, and benefits are a close second. So, why not incentivize your team with both using prepaid cards? 

The most effective incentive initiatives include both consumer (pull) and employee (push) incentives. Think of this like links in the “performance chain” that, when aligned, are a force multiplier for your business.

The Benefits of Using Prepaid Cards to Drive Behavior

Using digital or branded physical prepaid cards is a valuable way of incentivizing both customers and employees, therefore driving the right behaviors. It’s a fast, easy, and secure way of attracting and retaining the right people, and motivating them to behave in the way that most benefits your business, whether that’s customer loyalty or employee performance. 

Branded prepaid cards have an extra benefit in offering in-wallet branding opportunities and the chance to communicate and reinforce your message.

Not only is the prospect of being financially rewarded a great driver for both sales and service teams alike, it’s also a fast, easy, and effective incentive program for your business. 

Prepaid Technologies makes it easier to incentivize customers, sales staff, and other employees, helping you drive the behaviors that are most beneficial to your business. We can set up our prepaid rewards cards to align with both your program structure and your audience’s preferences, including how we fulfill them (digital or physical cards), whether you want to brand them or deliver a message with them, and how the cards function.

To find out more and get the ball rolling with your new reward and incentives program, get in touch with our team today.