Product category:
Integrated marketing
News Release from: P&MM | Subject: branded debit cards
Edited by the Marketingservicestalk Editorial
Team on 31 August 2007
The rise of branded cash
John Sylvester, executive director of B2B marketing services company PandMM, discusses the burgeoning success of branded debit cards for motivation and benefits schemes.
Human resources specialists are continually on the look-out for new ideas to drive motivation, improve loyalty and staff retention, and to make recruitment easier At the same time they have to consider the practicality of the payment methods and usage so that the schemes are popular with staff and easy to manage
This article was originally published on Marketingservicestalk on 13 Mar 2007 at 8.00am (UK)
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Companies pay incentive rewards and bonuses through a variety of means.
Recently the branded debit card has proved to be so highly effective and popular within motivation schemes that employers are starting to use them more widely.
So why are cards now a successful solution for motivation and benefits schemes? Firstly, it is because cards are already well established, used extensively by most of us and are widely accepted.
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A card linked to VISA or MasterCard, for instance, is accepted in well over 20 million outlets worldwide.
From an employer's perspective, it usually takes little effort to convince staff to accept a card scheme.
Once set up, most card schemes can allow the employer to reload credit yet prevent the employee from going into debt on the card.
By branding the card with the company's name and logo, the recipient is regularly reminded how they earned the money.
A branded card is, quite simply, branded cash.
Now, however, some employers have recognised that prepaid cards can be used as a mechanism to deliver highly attractive employee benefits that can be offered within job packages and to improve staff retention and loyalty.
Employers are offering their staff exclusive opportunities to enjoy valuable savings at certain leading retailers, leisure outlets and service suppliers that are only available by using the 'branded cash card' provided by the employer.
To take advantage of these savings, staff who have registered for the cards must first transfer funds from their salary or personal bank account on to the card - it is not a credit card and they cannot go into debt.
They receive the savings by using the card when they pay at participating retailers and organisations.
In addition, they can use the card as a highly versatile payment card anywhere where VISA or MasterCard is accepted.
Employers are branding these cards, either in the image of their company, or a specific campaign or initiative to provide positive reinforcement every time a purchase is made.
Cards are the future of the rewards and benefits industry as they become even more widely used in day-to-day living.
Industry experts estimate that 75% of the voucher business will switch to plastic by 2012.
We've also recently seen the announcement of prepaid 'touch-card' Oyster-card-type technology while, in the US, pre-paid cards are widely used as payroll and expense cards for casual or temporary staff.
This solves the problem of paying workers without bank accounts.
Cards offering versatility, branding or valuable savings can make a big difference to an employer's payment systems or employee's spending power and so give the employer a significant advantage in a highly competitive employment market.
Spree Card Case Study.
PandMM launched the Spree Card with a major blue-chip client in June 2006 to provide an incentive for call-centre staff, field sales staff and engineers.
This was introduced as an addition to an existing employee benefits programme where cheques, vouchers, travel incentives and merchandise were already available.
The Spree Card was introduced to increase participation and drive employee motivation.
PandMM developed a bespoke, branded card for the client and attracted over 5,000 users.
It was so successful that we loaded over GBP2million in rewards within six months of launching.
This was successful in motivating all levels of staff but particularly with higher-level performers.
The popularity of the Spree Card eclipsed that of the other alternatives, with over 40 per cent of all redemptions switching to the card.
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