Cardholders Prefer Cash Back as Incentive

OAKBROOK TERRACE, IL (June 2004) – A recent study conducted by Raddon Financial Group (RFG) shows that eighty-two percent (82%) of households who have a debit card would prefer a cash back rebate as an incentive program. This is compared to forty-eight percent (48%) of households who prefer points redeemed for gifts and thirty percent (30%) who prefer an airline mileage program. Fifteen percent (15%) of households preferred free long distance phone minutes.

“Given our past research on various types of incentive programs, it was not surprising to see consumers opt for a cash back rebate program because cash is more tangible than other types of rewards. However, from a debit card issuer’s standpoint, a cash reward program, depending on its structure, could be the most expensive incentive program that it could offer.” said Bob O’Meara, Vice President, Director of Research.

The results of the study came from RFG’s Strategic Planning Study Group (SPSG) program. Based upon 1,271 survey responses of a randomly drawn sample of members of a nationally representative direct mail panel, the consumer responses used in this study were weighted to reflect the nation’s demographic composition. The study’s confidence interval for any proportion gathered in the survey is in a range of 2.0% to 3.0% at the 95% level of confidence.

About RFG
For more than 20 years, Raddon Financial Group, Inc (RFG) has provided primary research and marketing solutions to the financial services industry. Headquartered in Oakbrook Terrace, IL, RFG provides research-based solutions to over 1,000 financial institutions nationwide. For more information about RFG, visit www.raddon.com or call 800-827-3500.

For more information contact: 
Dan McGowan, Marketing Director, Raddon Financial Group (RFG)
Email: dmcgowan@raddon.com
Phone: 800-827-3500