Enticing vehicle buyers to create purchases with incentives isn’t a new idea. It’s lengthy been known that individuals within this market could be swayed based largely on which they receive to acquire their purchases of services and products. The key choice within this process is based on picking out the best kind of incentive to provide. Cash return rebates on prepaid credit cards and great deals are two of the most common methods to incentivize consumers. Which could well be most attractive to the customer?
A brand new auto study printed in Incentive Magazine by Deanna Ting surveyed 1,300 U.S. consumers. It demonstrated that auto shoppers tend to be more motivated to create vehicle or tire purchases, take test drives, or book vehicle services when offered cash return rebates-typically administered on prepaid credit cards-not great deals.
This logic isn’t obscure considering that the $1,000 rebate on the prepaid credit card during the time of purchase is a lot more appealing compared to same return discounted within the existence of the automotive loan. Saving $1,000 around the final cost from the vehicle can lead to a minuscule decrease towards the payment per month within the existence of a short three-year loan. Furthermore, people naturally enjoy instant gratification over delayed payoffs.
Further findings out of this survey:
• Rebates encourage test drives – Laptop computer demonstrated that the $500 after purchase rebate additionally to some $50 prepaid credit card is easily the most compelling formula for growing the amount of test drives taken.
• Incentives strengthen service loyalty – Consumers stated they’d change their behavior and turn into loyal to particular dealer when they received a $100 prepaid credit card for each year and services information at this dealership along with a $10 prepaid credit card for each service performed there. This can be a fundamental way to make sure that your clients remain faithful to your dealership over others.
• Prepaid credit cards are the most useful incentive for tire shoppers – A $50 prepaid credit card may be the most powerful motivator for individuals looking for tires. Surprisingly, it’s much more effective than the usual $60 gift certificate, a totally free year of oil changes, as well as $300 price of discounts on future tire services. Again, instant gratification wins out over future savings.
Considering these revelations, prepaid rebate cards ought to be a leading a part of your 2014 technique for improving automotive revenues and growing the loyalty of the subscriber base.