Pinnacle Financial Strategies, a Houston, Texas, firm thatprovides cash rewards programs has released studies which, itsays, indicates consumers strongly favor such cash-basedrewards.

The studies reaffirmed the long-standing consumer preference forcash-back rewards, with 61% of consumers asked responding that theywanted cash rewards most of all and 63% indicating a willingness toswitch financial institutions to get them.

But as much as consumers want them, cash-back rewards are alsothe most expensive or among the most expensive kinds of rewardsthat card issuers can offer, Pinnacle Financial Strategies said.

But the firm argued that they are worth the additional expensegiven the better value proposition they offer.

“The cash-back rewards are designed to encourage the kind ofbanking behaviors that can both increase interchange income andimprove operating efficiency, so that's a win-win right there,”said Joe Gillen, president of Pinnacle Financial Strategies.“What's more, customers earning cash-back rewards have a longerlifecycle and thus a greater lifetime value. “Community banks andcredit unions that want to survive and thrive in retail bankingneed to look beyond toasters, points and miles and recognize theywill get more and keep more customers with cash.”