Consumers and businesses are taking steps to optimize their cash flow as the U.S. economy recovers from the pandemic, as consumer spending has stabilized in recent months.
Businesses are taking steps to make sure their products and services stand out from people who can still take a closer look at where their money is going. Capturing their attention remains essential for the large number of companies still trying to rid themselves of the lingering economic impacts of the pandemic.
One feature that more and more businesses are looking at for customer loyalty is rewards or discount programs that can offer consumers incentives to shop with them. Such programs must take into account how the impacts of the pandemic may have altered individuals’ payment wishes. Consumers express a growing preference for instant payment and disbursement methods, with a PYMNTS study finding that nearly 60% of individuals and micro-businesses are more likely to foster new relationships with businesses that allow instant payments.
In the last Monitoring of disbursementsÂ®, PYMNTS examines how consumers’ payment and disbursement requests are evolving and what this means for their expectation of rewards or discount experiences. It also analyzes what traders can do to make sure they are meeting those expectations.
Around the world of disbursements
Drugstore chain Walgreens is among those who hope the introduction of a strong rewards program will help them better engage and retain customers. The company announced the launch of two new credit card, which will offer cardholders up to 10% discount on product purchases. It will also offer 3% cash back on grocery, health or wellness transactions, even outside of Walgreens pharmacies, a category that includes visits to healthcare providers. The company will also integrate its cashback and rewards program into its mobile app in hopes of building loyalty among new cardholders.
However, incentive rewards will fail to capture the attention of consumers if funds for these programs are not immediately available. Today, individuals expect faster disbursement and payment experiences wherever they are, regardless of the business involved. This includes disbursements for more complex transactions outside the retail category, such as claim payments for insurance policies with multiple policyholders, explained. Drew edwards, CEO of Ingo money. It is therefore essential that businesses in all industries can send and receive funds, along with attached personal information, as quickly as possible. This uses technologies that can more easily connect different platforms, such as essential application programming interfaces (APIs), said Edwards.
An industry where consumers seem particularly keen to redeem their loyalty or rewards points is to travel, one of the areas hardest hit by the pandemic. A report found that 63% of American Express cardholders accumulate points on their card specifically to spend on their next trips, for example. This could represent both a key opportunity and an emerging challenge for companies in the travel industry, including hotels, airlines and booking sites. Using these points can help rekindle consumers’ interest in travel and loyalty to specific businesses. Responding to a large number of customers using all of their reward points simultaneously could lead to cash flow issues for businesses. Several airlines are now reconsidering the structure of their current rewards programs, indicating that the pandemic could have a lasting effect on the way these programs operate in the travel industry.
To learn more about these and other stories, visit Tracker’s News & Trends.
How supporting instant payouts for rewards and incentives can help merchants retain customers digitally first
Instant shopping and payment experiences are quickly becoming the norm for consumers, especially as they move to online channels. So e-commerce merchants are looking for ways to stand out from the digital crowd, and many of them are turning to features like loyalty or rewards programs to grab the attention of customers.
Retailers need to understand that digitally-focused customers also expect to access their rewards funds as instantly as they can pay, however, explained David Leeds, CEO of e-gift card and rewards provider Tango Card. To learn more about consumer expectations for instant rewards and how retailers can match them, visit the article on The Tracker.
Deep Dive: Why Providing Instant Reward Payouts Could Be Key To Lasting Customer Loyalty
Today’s consumers are becoming more and more demanding in their preferences when shopping, and IIf the selected retailers do not match, individuals will move on to the next merchant. One of the most notable changes – driven in part by the impacts of the global health crisis – has been an increase in the adoption of faster digital payment methods, even in physical stores. The popularity of contactless cards and contactless mobile wallets has grown over the past year, and the increasing level of convenience consumers have with these payment methods is also impacting how they expect to receive cash out. such as discounts or rewards from Preferred Merchants.
To learn more about how merchants can offer instant access to cash back or rewards and how it can help build lasting customer loyalty, visit Tracker’s Deep Dive.
About the tracker
The Monitoring of disbursementsÂ®, a PYMNTS and Ingo money collaboration, is the go-to monthly resource for the latest trends and changes in the digital disbursement space, covering developments across government, insurance and retail industries as well as global advances in payments adoption. snapshots.