Using a Prepaid Card to reward customer loyalty has been utilised around the world by some of the biggest companies. Depending on your business either open or closed loop cards could be utilised.
A closed loop product is appealing if you are in the retail space (physical or virtual) and would like to encourage repeat visits. A card that can accumulate a loyalty reward that can only be redeemed with you can be very successful if your brand is strong with your audience.
Open loop cards (MasterCard, Visa or Amex branded) can be more appealing to the recipient as the choice of redemption sites is greatly expanded in line with the schemes acceptance outlets. If you are rewarding behaviour from you customers not just "points" then this could be a significant way to increase loyalty from you base.
One of our manufacturing clients that does not sell directly to the consumer used an open loop card to reward loyalty to their brand even though the goods were not purchased directly form them. It was a great way to get branded piece of plastic into the purse or wallet of the end user base. The aim of this was to reinforce the brand as a global organisation and aligning the brand with a large scheme was a key decision made early on by the relevant marketing teams.
To find out how a Prepaid "Loyalty" Card could be used by your business please contact us