GiftCard Partners Blog

The Prepaid Press recently published
Employers Find Ways to Say ‘Thank You’ to Employees; Prepaid cards Increasing as Incentive of Choice which highlighted Young America’s recent research regarding prepaid cards (such as gift cards) gaining even more popularity amongst corporate HR incentive programs. With company-wide salary freezes and abandoned bonuses, employers are struggling more than ever to retain their best employees. “…employers who want to retain their best employees admit they have fewer resources to do so, and many are turning to structured incentive programs, which cost less than salary increases and often result in high levels of employee productivity, positive feedback and loyalty," said Joe Custer, president of Young America. A few highlights of the survey findings:

Prepaid and gift cards sales are amplified with new activity as technology paves the way to better than expected growth. Mercator Advisory Group recently reported that all segments of closed-loop prepaid exceeded their previous forecasts for 2010. In-store gift cards were forecasted at 4% growth for 2010, but total load volume hit $84.6 billion, up 10% from $76.9 in 2009. The B2B gift card market realizes much of this growth via gift card categories like digital-content (online games and social networking credit) and prepaid mobile; gift cards received more loads for these digital-content activities. Retailers are also doing a better job of integrating their gift cards with loyalty programs and other consumer promotions, which catches the attention of potential incentive and rewards buyers. “Loads on employee and partner incentive closed-loop cards increased 10% and loads on consumer-incentive cards also grew 10%”, states Digital Transactions in their Mercator report overview:
Buoyed by Gift Cards, Closed-Loop Prepaid Grew Faster Than Expected in 2010 “On the whole, what we’re seeing is even the closed-loop market is showing some resilience in the face of the economy,” Jackson says. Consumers seem to be recognizing the true value of their gift cards, and “many retailers are doing a better job of integrating their gift cards with loyalty programs and other promotions, Jackson says. “They’re realizing that gift cards are not just a plastic version of paper gift certificates,” he says. Source:
Digital Transactions: Buoyed by Gift Cards, Closed-Loop Prepaid Grew Faster Than Expected in 2010
 

Canadian small businesses are choosing people over profits, as consumers face the rising prices of everything from food, to gas, and even insurance.  Business owners are saying that they would rather absorb those costs through their businesses, than pass the financial burden on to their employees.  According to the American Express Small Business Monitor small businesses react to uncertain economic times by favoring long term employee and customer loyalty over short term economic gain.  Businesses see their employees as the most important asset to the company, over monetary revenue. Do you think this attitude could or does translate to small business behavior in the United States? Do you feel that the economic climate in Canada is different enough from the United States that small businesses can afford to make a larger investment in their employees? The GCP team found this article particularly intriguing, and are interested in your opinions on this issue, feel free to leave us a comment or tweet us @giftcardpartner.  Looking forward to hearing your thoughts!   For more information check out this
Financial Post article

What’s the high level? The
2011 Gift Card IQ Survey reveals good news for retailers when it comes to “bigger” incentive gift card budgets. The five largest budget categories (all above $75,000) all increased. For example: -    Budgets “more than $100,000 nearly doubled to 15 percent this year, compared with 7.8 percent in 2010.”

The "Kicks for Guns" program in Central Florida, will be held from this weekend in order to get illegal and unwanted guns off the streets of the greater Orlando area.  No questions will be asked of anyone turning in a gun, and people who turn in guns will be rewarded with gift card options from select local retailers.  These types of buy-back programs are common in communities when local law enforcement is trying to rid the community of certain dangerous materials.  Another common buy back program is for old prescriptions.  Often in communities local law-enforcement will reward community members with a relevant gift card in exchange for their old prescriptions. This is a way for the community to come together to promote safety and unity, and indulge in the offered rewards. For more information on the
gun buy back in Orlando click here.  Have you seen any other buy-back programs? Where and what was the reward? Let us know by leaving a comment.