Nichole Gunn | Source | Chief Marketing Officer at Incentive Solutions

The idea that noncash rewards can influence buyer behavior may seem overly simplistic, but there’s a reason that prizes, promotions and rewards have been a mainstay of American loyalty marketing over the past century. Studies in behavioral economics have shown that noncash rewards produce impactful, long-lasting changes in behavior at three times the effectiveness of monetary incentives such as cash back or discounts.

Building loyalty in a more fragmented, competitive, digitally-driven channel may seem like a daunting prospect, especially with the mounting economic pressure and major disruptions across all supply chains. However, now is the time to begin taking actions that will mitigate near-term losses and position your company for success when the economic picture turns around.