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Finding the perfect incentive to motivate, reward, or engage stakeholders can feel like solving a puzzle with too many pieces. As brands are looking to update their loyalty programs for the new year, offering exciting new rewards can play a significant role in that strategy. Prepaid rewards cards are a flexible, customizable solution that appeals to a wide range of preferences while simplifying program management.
In this interview with Loyalty360, Sheryl Shewman, Vice President of Business Development at U.S. Bank for Rewards, Incentives & Rebates, shares her insights on how prepaid cards are playing a role in loyalty and incentive strategies. From boosting engagement to delivering meaningful impact, Sheryl’s practical advice provides ways to enhance your programs and leaves a lasting impression on employees, customers, and vendors alike.
Loyalty360: What is the difference between a prepaid rewards card and a prepaid gift card?
Sheryl Shewman: Rewards cards are only available to businesses and organizations for purchase from a financial institution, while prepaid gift cards are traditionally sold in stores or bank branches for consumers to purchase and are not subject to the same package tampering as in-store gift cards. Both are single-load cards, but the rewards card can be used by employers for programs such as incentives, loyalty and recognition. Other important differences are that rewards cards through a financial institution can be replaced if lost or stolen, include detailed reporting for recordkeeping and can include customized branding.
L360: How do prepaid cards benefit program administrators and end users compared to other types of Rewards cards?
S.S.: For administrators: Purchasing Visa® or Mastercard® prepaid rewards cards from U.S. Bank allows administrators to streamline the ordering and fulfillment process, more easily manage the funds and track spending thanks to our robust reporting.
For end-users or recipients of the card: The cardholder experience is always important to U.S. Bank. Rewards cards allow for more flexibility when spending and ease of use, allowing the recipient to choose what is important. Cardholders also benefit from the ability to track their balance online and replace their card if it’s lost or stolen.
L360: What types of programs tend to use prepaid rewards cards?
S.S.: Many types of industries and verticals use prepaid cards such as manufacturing, retailers, telecoms, travel and hospitality, insurance, etc. Types of programs that use prepaid cards include sales performance incentives, appeasements, Refer-A-Friend, rebates, customer appreciation or loyalty.
L360: How can brands use a corporate rewards program to build loyalty among vendors or within sales channels?
S.S.: Loyalty programs are no longer a one-size fits-all model, and understanding your customer requires companies to know more about their shoppers and what makes them come back. Having a personalized/customized program and using customized prepaid cards adds value and satisfaction to the customer experience.
Brand awareness is top of mind for all companies and by having a customized plastic or digital card keeps your brand in front of your most important partners (vendors, suppliers, contractors and salespeople).
L360: One trend we hear a lot about in loyalty programs is the desire for personalization. What options exist for customization within the prepaid card program?
S.S.: U.S. Bank can customize prepaid cards with your company’s logo/brand or add a special touch by personalizing the card with the recipient’s name and shipping it directly to them.
L360: What are some challenges a brand might face when creating a corporate rewards program?
S.S.: Creating a successful corporate rewards program presents several challenges for brands as they need to balance customer motivation, administrative management, and program sustainability.
Key challenges include:
- Define the objective of your rewards program
- Maintaining budgets
- Choosing the right reward
- Tracking and measuring the impact of the program
Prepaid rewards cards are a powerful tool for loyalty and incentive strategies, offering flexibility and customization for both administrators and recipients. As highlighted by Sheryl Shewman, these cards simplify program management while delivering personalized, meaningful rewards that drive engagement and foster loyalty. From boosting brand visibility with customized cards to creating impactful rewards programs tailored to diverse industries, the potential is vast. By addressing common challenges, such as defining clear objectives and measuring program impact, businesses can unlock the full potential of prepaid cards to motivate stakeholders, strengthen relationships, and achieve long-term success.