New research shows potential for reward-based marketing promotions


Australian businesses report a 27% higher marketing ROI on average using rewards-based promotions compared to discounted promotions, according to the New generation promotions Aberdeen Research report.

In addition to the higher ROI, 49% of businesses reported increased year-over-year sales through offering customer rewards rather than discounts, with 31% increasing their sales from 3 to 10%. resulting from promotions based on rewards.

The Australian data was part of a global research project commissioned by Blackhawk Network that surveyed 401 small, medium and large businesses, including 100 Australia-based companies with combined annual revenue of over $ 50 billion, mostly in the retail and financial services industries.

Marc Cheah, Senior Director of Marketing for Blackhawk Network, APAC, said Christmas is just around the corner, many companies are now looking at their marketing promotion strategies to help drive Christmas sales and research has clearly shown the greatest benefits. promotions based on rewards.

“All businesses are keen to take advantage of the increase in consumer spending that occurs as Christmas approaches and this research suggests that rewards-based promotions deliver better sales results,” Cheah explained.

“But more than that, research has shown that this form of promotion offers longer-term benefits by generating greater customer loyalty and the ability to use the data from the exchange for digital rewards that can be linked to l membership, loyalty benefits and branded applications. “

Survey data highlighted increased customer retention, with Australian businesses reporting an average 2.6% year-over-year increase in customer satisfaction attributed to promotions based on rewards.

Most brands reported using a close to 50/50 mix of promotions based on rewards and discounts and Australia’s best results for rewards promotions were reflected in the global research which included top brands operating in North America , UK and Latin America.

Both forms of promotion had a positive impact, with global survey data revealing greater benefits of reward-based promotions, including:

  • 10% more refunds from customers compared to discounted promotions
  • 8.6% higher marketing ROI on average compared to discounted promotions
  • 47% higher average sales increase compared to discounted promotions
  • Average increase of 57.5% in annual turnover compared to discounted promotions

The survey also asked why companies use rewards-based promotions with 56 percent of respondents wanting to boost purchase intention and 53 percent of respondents aiming to drive customer engagement as the top reason.

Digital rewards were found to be even more effective, with survey finding that the main reason brands chose this form of promotion was the ease and convenience for customers to claim rewards (53%) and the ability to personalize rewards based on customer preferences (49%). .

The full Aberdeen Research report is available at


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