Case Study: Points-based rewards vs. Cash

A BI WORLDWIDE analysis of data from one customer’s organization examined the efficacy of different reward types:

• Debit cards loaded with cash
• Points that could be redeemed for a range of rewards

On average, employees earned more than $100/month on their debit cards and less than $100/month in points — eliminating the objection that points-based rewards might perform better simply because they’re worth more.

Difference in Spending Habits:

• More than 85% of employees saved their points for luxury and hedonic items like merchandise and experiences.
• They spent their debit cards regularly at vending machines, fast food restaurants, and gas stations, with nearly 85% of transactions under $30.

Difference in Performance:

• Employees who earned points outperformed those who earned cash, experiencing on average a 43% unit increase over their baseline performance.
• Employees who earned cash experienced a 16% decrease in performance.

The Bottom Line – Points Inspire

Cash disappears into day-to-day necessities. Points inspire dreams – and the type of performance that moves your business forward.

To learn how BI WORLDWIDE Canada can help you provide inspiring employee rewards, visit our Merchandise Marketplace or Experiences Marketplace or feel free to reach out to us at canada@biworldwide.com.