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Boost Rewards adds new customer recognition programs for a credit union and customer service company.

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Points vs. Cash

Incentive and recognition programs have evolved over the years – from the early days of S&H Green Stamps to today where the essential choices still remain a matter of a points-based system and cash rewards.

For the past decade cash programs have expanded their choices to feel less like cash with the advent of gift cards. Today, most if not all national food and retail chains have gift cards and major credit company offer prepaid cards focused on certain industries such as travel and leisure.

Points-based systems are a newer concept and most recently have just begun to tap into the real potential for powerful and effective incentive programs. There are some fundamental differences between points and cash and, for the most part, points-based systems are proving out to be the more effective. Here are a few points to consider.

Employees or stakeholders actively participate in how they reward themselves

Choose from a wide variety of products – through Boost’s relationship with Amazon.com, they can choose from thousands of products.
Shop online – many people already shop online so there are no additional costs or issues associated with redeeming their points. Gift cards, for instance, may mean traveling to a specific restaurant, gas station, or other retail outlet.
“Trophy value” rewards – rather than spend cash rewards on paying bills, they’ll be reminded of the company’s value each time they use the product they bought through your program – from juicers to exercise equipment to the latest electronics.

Cash rewards can only increase

Like salaries, cash rewards will need to increase over time in order to be perceived as valuable. Even remaining at the same level will appear to be of less value over time. With points-based systems, the sheer quantity of product choices and their active participation in choosing their rewards allows you to maintain an effective and engaging program over time without necessarily requiring higher budgets.

Cash offers no opportunity to learn about your program or your people.

Once you deliver the gift cards or the check, you have no ability to learn how or when your people are spending their rewards.
With Boost Rewards, you have powerful reporting tools to learn more about your people and your program over time – from what your people buy to how many points are needed to produce the desired results with your program.

“Managers prefer non-cash motivation solutions to achieve most business objectives.”
– The Forum for People Performance Management and Measurement, a research center within the Medill Integrated Marketing Communications (IMC) graduate program at Northwestern University. More information at www.performanceforum.org

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