More than 50% of US broadband households with mobile service find non-cash rewards programmes appealing, according to a study conducted by research firm Parks Associates.
The study reveals that programmes offering non-cash prizes such as gift cards can boosts net promoter scores for service providers by 15 to 30 points.
The study aimed to explore the impact of non-cash rewards programmes on consumer adoption of smart products, service participation, revenues, as well as consumer behavior and loyalty
To date, 26% of US broadband households own a smart home device, up from 17% in 2015.
Denise Ernst, senior analyst at Parks Associates, commented: “Many energy service providers, including Reliant, Constellation, and Clean Choice Energy, have successfully integrated gift cards into their incentive programmes to encourage new customers and promote loyalty.
“Almost all IoT players are trialing common customer engagement tools such as discounts, BOGO and free merchandise, but today’s connected consumers respond to offers that are flexible and self-empowering, making gift cards particularly appealing.
“One key factor inhibiting smart home adoption is cost perception—41% of households that do not own smart home devices feel they are too expensive.
“Gift cards can help overcome inhibitors such as price sensitivity. Purchase intentions for smart home devices among non-owners are increasing, from 17% in 2014 to 36% in 2018, and gift cards can help turn these intentions into reality.”
Deb Merkin, CEO at GiftCard Partners, added: “For over a decade, GiftCard Partners has helped companies use gift cards to achieve engagement, customer acquisition and loyalty.
“Gift cards are used in over 60% of reward and recognition programmes. They are easy to implement, provide high trophy value, and they get results.”