If StubHub had not already laid claim to its Ticket Oak anthropomorphized mascot, the gift card industry would be a perfect fit. The utility of gift cards is absolute. And the gift card “tree” that is a staple of any self-respecting grocer is testament to the popularity of the plastic, pocket-sized currency.
Gift cards have become an important and effective tool for motivating and recognizing stellar performance in the workplace. According to a market research survey by the Incentive Research Foundation (IRF) and the Incentive Gift Card Council (IGCC), $22.7 billion is spent annually on gift cards for business use alone.
The research shows that a total of 59 percent of U.S. businesses use some type of non-cash award program, and 52 percent use gift cards to recognize and reward employees, salespeople, channel partners and customers.
“The economy over the past years has affected many things, but the research confirms that the use of gift cards in business is still very strong,” says Betty Weinkle, past President of the IGCC. “We find that the convenience, variety, and desirability of gift cards contribute to their ability to motivate, reward and recognize.”
A total of 1,769 businesspeople responded to the survey last fall. Respondents were asked whether their company ran gift card programs targeted to four different categories: employees, sales, channel partners and customers. Gift cards for employees was by far the most popular use (63 percent) followed by customers (36 percent) and sales (31 percent). Only 3 percent reported using gift cards with programs targeted to channel partners.
Who’s Spending What?
It is interesting to note that there are differences in how companies of various sizes source the gift cards for their programs. Large businesses are more likely to use a card provider that can deliver many different types of cards, while smaller businesses are more likely to go directly to retailers for their cards. Approximately one-third of U.S. businesses use both card providers and retailers, regardless of the size of the business.
As Matt Harris, Chairman and Vice President of Marketing at InteliSpend Prepaid Solutions, told Sales and Marketing Management last summer, there is good reason to buy from B2B gift card suppliers no matter the size of your program. “The price is usually better for you because the participating merchants offset some of the cost,” he said.
He also noted that a feature available through incentive gift card suppliers called restricted authorization network (RAN) allows program sponsors to use gift cards that can be used at a list of retailers that they can select. This gives recipients expanded choice, while allowing businesses to prevent their rewards from being used to buy gas, groceries or other items that don’t provide lasting trophy value.
“You get to strategically build the list of merchants where your card can or can’t be spent so that experience aligns with your objectives,” Harris explains. The menu of spend options provides your recipients with a guilt-free experience since they aren’t faced with the choice between, say, paying the cell phone bill or getting a new set of golf clubs.
The research also found that a good portion of the $27 billion that businesses spend on gift cards each year comes from small and medium-sized companies. Companies with annual revenue between $1 million and $10 million account for more than half of that $27 billion total ($12.86 billion). These businesses don’t spend large amounts, but the sheer number of programs they run and cards they buy quickly add up.
Going forward, the IGCC and IRF state they want to find out more about the distribution of programs, responsibility and budgets across extremely large companies. They also want to find out more from the 48 percent of companies that report not using gift cards to better understand their reasons for bucking the gift card trend.
A gift with spa-tential
Spa & Wellness Gift Cards by Spa Week® are valid year-round at over 5,000 spas and wellness facilities across North America. They are easy to redeem, never expire and have no added fees. eGift Cards are also available. Founder of the popular biannual Spa Week® event, Spa Week Media Group connects millions of wellness-conscious consumers with thousands of spas across North America. For more information, call Heather Abbott at Spa Week Media Group, 212-352-8098, Ext. 118, or e-mail heather@spaweekmedia.com.
Reward, retain, repeat
Reward your best people and customers with Best Buy Gift Cards and e-Gift Cards. Let them choose what motivates and inspires them: smartphones, tablets, electronics and more from Best Buy. No fees. No expiration dates. Just Happiness.™ Visit CorporateGiftCards.BestBuy.com or call 877-370-1234.
Easy to give…perfect to receive
Bath & Body Works makes fragrance fun with exclusive Signature Collection scents, the world’s best home fragrances, anti-bacterial hand soaps and sanitizers, and more. With Bath & Body Works Gift Cards, your recipients can select their own perfect gifts and so much more. For more details, contact Jeri Newman of Bath & Body Works Corporate Sales at 614-856-7203.
Tumi gift cards
Tumi has entered the incentive gift card space, offering gift cards in any denomination between $50 and $2,000. The cards can be redeemed at any Tumi store in the U.S. or online at tumi.com. The Tumi gift card has an elegant black background and red Tumi logo that ties in with the fashionable appeal of Tumi products. Cards can be customized for a corporate program. For more information, contact Mike Landry at 413-567-1567 or
visit tumispecialmarkets.com.
Reward your champions
Nike has combined its passion for competitive sports and fitness with technology and innovation to outfit athletes around the globe. Nike Gift Cards are redeemable for high-performance footwear, apparel and equipment specifically designed for your sport. Gear up at NIKETOWN, NikeFactoryStores, NikeStore locations and at NikeStore.com, the official place to buy Nike gear online. Nike Gift Cards are also valid at NIKEiD.com, where you can customize Nike products to match your own style and performance. For more information, call Melissa Pelham at
877-220-6453 or e-mail giftcards@nike.com.
Individual incentive travel
Give your top performers their moment in the sun. Marriott Individual Incentives allow you to properly recognize your indispensable superstars. The ultimate reward is a fabulous stay at one of Marriott’s 3,600 locations worldwide. They deserve it. For more details, call 800-835-7754 or visit MarriottMotivates.com.
