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Consumer Mindset on Redemption & Choice in Loyalty & Incentive Programs

consumer mindset on redemption and choice

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Consumers today want the ability to choose, be it the wireless device they use for work and play, the self-selection of digital or traditional shopping channels and options, or the ability to choose among different gift cards in loyalty and incentive programs.

The better the choice, the more apt the person is to be active in the loyalty or incentive program, pursuing the desired behavior in order to earn the reward. Loyalty program participation is a problem for many companies. According to the Colloquy Loyalty Consensus released in February 2015, the average household is “involved” in 29 programs, but active in only 12.1

“A huge challenge is differentiation. Most programs look very similar to their competitors and even to programs in other verticals.”

– Barry Kirk, Solution Vice President – Loyalty Strategy at Maritz Motivation Solutions.

“When instituting a loyalty program, the goal is to engage your customer and give them a reason to transact with your organization more often,” adds Erin Raese, COO and Editor-in-Chief, Loyalty Management at Loyalty360. “Earning points builds engagement, redeeming points creates an additional positive experience. Therefore, it’s important to make sure your rewards selection is attractive to your customers. A way to do this is to provide gift cards to popular merchants where your customers like to shop.”

Gift cards are popular because the value is easy to determine and they know what they are truly receiving, whereas the value of travel or merchandise rewards are more ambiguous, Raese adds.

Continue reading to learn more about what the experts have to say about:

  • The transition to digital
  • The importance of incentive choice
Lauren is the Marketing Specialist here at GiftCard Partners. She enjoys all things marketing and design related. Learning about the newest trends and technologies in the b2b gift card world and seeing how we can use them to develop the best experience for our audience and reader base is our goal.

CVS Health’s Corporate Responsibility Makes Top 100 List

cvs-health-sign

Last week Corporate Responsibility Magazine announced its 16th annual 100 Best Corporate Citizens List and CVS Health cracked the top 30, representing one of only three retailers that made the list this year. According to CR Magazine the 100 Best List documents 303 data points of disclosure and performance measures – taken from information in seven categories:

  1. Environment
  2. Climate Change
  3. Employee Relations
  4. Human Rights
  5. Governance
  6. Finance
  7. Philanthropy
  8. Community Support

So what made CVS Health’s corporate responsibility stand out amongst a sea of retailers? In the article, What Makes a LeaderBill Hatton shared some thoughts on the decision to include CVS. Hatton zeroed in on CVS Health CEO, Larry Merlo who won a 2014 CEO of the Year award largely in part to the decision to pull tobacco from more than 7,800 CVS/pharmacy locations across the United States. While the move meant losing between one and two percent of total sales, the CEO and the CVS Health organization as a whole determined that the decision was consistent with their business strategy of creating a company based on improving the lives of their customers. Hatton ends the article by saying,

As with the decisions with other CEOs of the Year, the tobacco decision proved to be a case study in how to roll out a tough choice. The key was they looked for all the possible ways their decision could alienate people, and did their best to address each one – and recognized that they weren’t going to be able to make everyone happy.

Read the full article from Hatton here.


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Lauren is the Marketing Specialist here at GiftCard Partners. She enjoys all things marketing and design related. Learning about the newest trends and technologies in the b2b gift card world and seeing how we can use them to develop the best experience for our audience and reader base is our goal.

Ensure Your Third-Party Gift Cards are Properly Merchandised and in Stock

third-party-gift-cardThe third-party gift card segment has consistently been one of the fastest growing gift card distribution channels for the last seven years. Third-party can easily be your largest sales channel outside of your own stores. Actively engaging in third-party sales can increase your brand footprint, reaching consumers that may have not known about your brand otherwise. Having ongoing, frequent dialogue with your third-party aggregator is key to understanding what exactly their retail partners are doing to drive your gift card sales.

The aggregators provide you with access to your sales, but do you know why your sales may be trending up or down? Ensuring that your third-party gift cards are properly merchandised and in stock is one of the most critical components to why your sales may be trending positively or negatively. If your gift card is not available when a customer wants to buy it, you have a lost a sale and a visit to your establishment. Here is a list of additional questions to consider when analyzing your third-party program:

  • Why are gift card sales trending up/down within specific partner/s?
  • Are we aware of all marketing opportunities available to our brand? Paid or unpaid.
  • Was our brand included in marketing and promotions?
  • Where is our gift card displayed on the main rack and throughout the store?
  • How many pegs does our gift card occupy?
  • Is our gift card in stock? Are the pegs full? What percentage of the time?
  • Does adequate inventory exist to maintain in-stock availability?
  • Is our latest gift card design and logo being presented?
  • Which competitors’ gift cards are also available?
  • Are we confident the information received from the third party aggregator is accurate?

The answers to these questions are critical to managing this large, highly visible segment of your gift card business. A gift card audit can answer the questions listed and provide objective data as support. The results of an audit will provide a roadmap for improving sales and improving the performance of the third party aggregators. To learn more, click here .

Cameron has over ten years of experience in the prepaid industry that includes the development, sales and marketing of gift card programs for large, nationwide retailers and hospitality operators. His expertise in identifying and developing distribution channels and maximizing third-party distribution enables our clients to achieve their goals.

Incentive Professionals Weigh in on the State of the Industry

13th Annual Incentive Industry Roundtable

Photo from IncentiveMag.com article, 13th Annual Incentive Industry Roundtable

Once again Incentive has gathered professionals from across the motivation and engagement realm to come together and discuss the state of the incentive industry.  Topics included a popular focus on retention and return on investment, the need for non-cash rewards, and a sense of what’s going on in the merchandise, gift card, and travel awards categories.

Here’s a peek at some of the discussions that went on this year in the big apple.

Motivating across all generations.

“Then we look at engagement initiatives and the multi-generational workforce that we have, we see that companies are realizing the importance of keeping their high potential, high-performing associates engaged.”
– Tina Weede, President, US Motivation

“We have to continue to figure out how to draw in and motivate and reward and engage all the people across the entire organization.”
Tim HoulihanVice President, Rewards Systems, BI WORLDWIDE

The type of rewards.

“The science makes a big difference. We’ve done research on cash versus non-cash that shows, empirically, that non-cash awards will change the level of production that you get out of someone, whether it’s sales or something else.”
Lynn RandallManaging Member, Randall Insights; Education and Content Consultation, Incentive Research Foundation

“Here’s the difference that electronic gift cards have made to the incentive world: When it was merchandise-only, catalog recipients were told to wait four to six weeks to receive a reward. The [plastic] gift cards came into play, and it was five to seven business days. Now, we’re delivering rewards in less than an hour.”
Dennis BorstPresident & COO, Patriot Marketing Group/Foot Locker Gift Card Sales

To learn more from the roundtable, check out the full article from Incentive Magazine here.

Lauren is the Marketing Specialist here at GiftCard Partners. She enjoys all things marketing and design related. Learning about the newest trends and technologies in the b2b gift card world and seeing how we can use them to develop the best experience for our audience and reader base is our goal.

Increase Your Company’s Gift Card Sales

increase gift card salesIt’s a question many brands face.

How can I increase my company’s gift card sales?

Perhaps you already have a point-person in charge of gift cards, or you’re looking to adopt a gift card strategy for the first time.

Either way, the opportunity is grand.

Gift cards are a mainstay – more than half of U.S. households report receiving a gift card in the last 12 months, and 85% of those recipients redeem the cards within the same time frame.

Without a focused effort and a sound, smart plan for spreading the word and increasing awareness of your gift card program, it can be difficult to reach the many potential customers likely to be interested in your offer.

We just published a free guide that covers five of the key strategies we’ve used with our clients over the last several years.

From optimizing your in-store and online presence to thinking more strategically about third-party relationships and B2B programs, this guide is sure to help spark some ideas.

Let us know what you think!


Established in 2004, GiftCard Partners is an award-winning leader and outsourced solution provider for merchant B2B gift card programs through key distribution channels.

Get Social with Employee Engagement

Social media has become and integral part of all of our lives, whether we like it or not. Using social media to engage employees can be a great tool, it’s become a staple for many Americans in their day to day routine and requires voluntary participation by definition. Here are four great ways to use social media to stimulate employee engagement, no matter your organizations size.

  1. Solicit Feedback: Use social tools to solicit feedback from your employees. It doesn’t have to be public or identifiable to any one employee. Sending out an anonymous survey where employees can track the results in real time can make them feel like their voice is being heard and gives you the chance to see where the majority public opinion lies.
  2. Respect Privacy: Not all employees are social, or will want to use social outlets for certain topics. For employees who aren’t comfortable using these channels, make sure you provide private outlets to engage in a way that works for them. No two employees will engage exactly the same way, listen to your people and give them what they want.
  3. Score Yourself: Set goals for employee engagement, and adjust your program as you go. If it falls flat in the first iteration, follow up with engaged employees offline and find out what’s going on. An employee engagement program can’t be successful without the employees’ buy in. Be flexible, make adjustments and optimize.
  4. Reward Participation: When employees engage in the program you’ve outlined, reward them! If one employee sees another get a gift card to a popular retailer like AutoZone, Crutchfield or CVS/pharmacy, it’s safe to assume the desired behavior will be repeated.

For more information on how to make your employee engagement program social, check out Incentive Magazine’s guide.

Rachel Merkin is a digital marketing professional. She has been exploring the worlds of social media and B2B gift cards since 2006. When she is not blogging, tweeting, or finding ways to leverage Facebook as a marketing tool, she spends as much time at the beach as she can.

2013 Key Holiday Gift Card Trends

The Retail Gift Card Association (RGCA) recently released their Holiday Gift Card Trend Tracker Survey results, and there are some great notes for our retail and merchant clients, and for our B2B gift card customers as well.

How are retailers approaching this year’s news that consumers will spend less during the holidays  this year than last? The RGCA states, “…despite the tight wallets, there is a silver lining for many retailers: retail gift cards.” They found in their survey that 73% of consumers will spend less this holiday shopping season, while 74% will buy and give at least one, and as many as five, gift cards as gifts.

GCP’s customers, B2B gift card buyers, purchase gift cards in bulk and can also be pleased with these trends. Whatever consumers are doing, B2B buyers will want to be aware of and follow suit.

Key Trends for Retail Gift Cards graphic

 

Whether you are a retailer looking for the latest gift card trends
or a B2B gift card buyer, you’ll want to
check out the RGCA’s Full White Paper and Report.

 

Established in 2004, GiftCard Partners is an award-winning leader and outsourced solution provider for merchant B2B gift card programs through key distribution channels.

6 Misconceptions About eGift Cards

At GiftCard Partners, we have been working hard to help gift card brands navigate the complicated eGifting technology landscape in their journey to offer eGift Cards. We’ve found that even though retailers accept that they will find new incremental gift card sales with early adoption, they have not rushed to do so. Forbes.com reports 70% of the retailers, recently evaluated in a CashStar study, now offer digital or “eGift cards”. This is up from 60% in 2011 and 40% in 2010. This is good news for consumers as we rely more and more on technology to organize our lives, but for retailers looking to offer eGift cards in the B2B marketplace; technology is a bit more complicated.

But let’s get back to the important questions retailers ask themselves of their gift card program when preparing to go digital…”should we offer eGift cards yet?” Or “should we be early adopters or should we wait for other retailers to figure it out”? Chain Store Age online offers us their Top 6 Misconceptions About eGift Cards and debunks them. Click to read on, the rebuttals, it will surprise you!

1. “eGift Cards will only cannibalize our existing gift card sales”
2. “Fraud in eGift Cards is too pervasive”
3. “Our IT department can build this internally”
4. “The technology is unproven”
5. “Customer adoption isn’t there yet”
6. “New hardware will be required in all stores”

If you are a retailer looking to “go digital” with your gift cards, Gift Card Partners can help with our RFP  Management service. We embrace the tricky work of renegotiating existing vendor relationships, and help retailers implementing new relationships, with: card supplies, processors, payment systems providers, and more.  >>Learn more about our Services Suite designed to improve your gift card program.

Established in 2004, GiftCard Partners is an award-winning leader and outsourced solution provider for merchant B2B gift card programs through key distribution channels.

Retail Trends Shift Towards Corporate Gift Cards

It’s no secret that corporate incentives are a hot topic for retailers and merchants this year, and adding fuel to that fire is the release of the Incentive Federation’s “Incentive Market Study” this week. The study showed that U.S. businesses are spending nearly $77 billion on employee rewards and incentives in the form of travel, merchandise and gift cards.

Corporate gift card programs are shifting to be an important retail trend, as B2B gift cards not only open up another avenue for incremental sales growth, but they also act as a catalyst for customer acquisition, brand growth and bulk buying.

As one of largest developers of corporate gift card programs, GiftCard Partners helps our clients navigate through this fast growing and high demanding corporate market. Interested in learning more about building your presence in with B2B customers? We’d love to hear from you!

Lauren is the Marketing Specialist here at GiftCard Partners. She enjoys all things marketing and design related. Learning about the newest trends and technologies in the b2b gift card world and seeing how we can use them to develop the best experience for our audience and reader base is our goal.

Corporate Gift Cards: HOT topic for the 2013 Incentive Roundtable

Incentive Magazine gathered professionals from across the motivation, recognition, travel, and rewards spectrum to come together for a discussion on the state of the incentive industry. Corporate gift cards, or, gift cards used in the corporate environment portion of the B2B marketplace was a hot topic!

In their interview, Incentive Magazine posed the question, “How is the gift card market doing?,” the panel had some interesting views on corporate gift card use.

  • Gift card denominations are decreasing, being used more for a tool that rewards behavior, as micro rewards or incentives
  • Reward and incentive program participants are choosing gift cards over cash seven-to-one
  • Gift cards are outweighing other staple rewards like iPad bundles and travel vouchers, with 75-80% of recipients opting for the gift card

Read the full article from Incentive Magazine here.

Lauren is the Marketing Specialist here at GiftCard Partners. She enjoys all things marketing and design related. Learning about the newest trends and technologies in the b2b gift card world and seeing how we can use them to develop the best experience for our audience and reader base is our goal.