GiftCard Partners Blog

Incentive Research Foundation (IRF) and the
Incentive Federation recently published a study that highlights gift cards as an employee reward preference over cash rewards. The study about incentive awards recognizes non-cash incentives as a way to control spending, while motivating employees and channel partners. The preliminary results of the study point out that employee cash incentive awards are averaging $732.00, which is triple the cost of non-cash awards. “The study validates our experience and belief that the average cost of a cash award is roughly triple that of either merchandise ($206) or gift cards ($240),” according to Incentive Federation Chairman Stephen Slagle.  “The total cost of incentives is especially important in our post-recession economy, so the data points stimulated extensive discussion around the benefits of each award type,” he explained. To read more about this study, visit
IMA’s Return On Performance. Check back with us regularly; we’ll publish a link to the full study results once they are available.

I recently posted a response and opposing side to a story called “The Myth of Work Life Balance”, which stated that there was no such thing as this balance, that this idea is a pathetic chase and unattainable. Of course, I scathed out my side, practically offended that a woman would advocate “giving up” our journey to work-life balance; it doesn’t exist. Honestly, I’ve felt a bit unsettled that my attempt at debunking this myth was just one mom’s personal story and perspective and not representative enough of others’ truths. However, my company meeting gives us proof otherwise.

The number of consumers shopping across multiple channels is expanding while retailers everywhere face margin challenges and an uncertain economy. Consumers will seek information both on-line, and through mobile technology but will only shop in the most convenient channel. Multi-channel retail has become theexpectation (and a competitive advantage). This strategy allows the company to be everywhere the consumer is shopping, and lowers the risk the shopper will inquire at their outlet, and spend their money elsewhere. The difficult part of multi-channel retail is making the transition and keeping up with the consumer trends. How are multi-channel retailers reacting to this change in consumer shopping?

This is an interesting topic for our clients (retailers) to follow. When we sell our merchant client’s gift cards into the B2B sector, our client’s wish that they could “know” who the gift card users are. The customer who selects a merchant gift card as reward for doing a great job or through their credit card loyalty program are in fact consumers and therefore, potential brand advocates, and incremental new customers of the future. The consumer who redeems for a gift card is one

Working in the B2B and corporate side of the gift card industry, this story caught my eye as it’s a clear indication of the power of gift cards as a consumer promotion and spending incentive. As a wanna-be power-user of my loyalty rewards and savvy consumer, I’m drooling over this story. Here’s what Cardratings.com has to say about recent gift cards offers as loyalty rewards & credit card promotions.“Bonus offers on credit cards have never been juicier, said Cardratings.com founder Curtis Arnold, who has followed the industry for about 10 years. Arnold said he was "blown away" recently by an offer he received -- and quickly snapped up -- for the American Express Business Gold rewards card. He'll get $500 in gift cards if he charges $2,000 in the first three months, plus the card's $125 annual fee is waived for the first year.” Beyond how cool it is to get a free $500 gift card bucks, I know when I am given gift cards as an incentive or request them through my loyalty & rewards programs, I truly feel like it’s a “gift for ME”. When I receive and spend credit card style gift cards (open loop) cards, I tend to spend them on practical items, like food shopping or gas or not remember where I spent them or on what. For this reason, I much prefer closed loop or brand/retailer specific gift cards. This is likely why Amex offers gift cards from specific retailers, rather than just their own…they are much preferred by employees as incentives, loyalty rewards program users, and consumers for incentive and promotions. For more on
how credit card companies are using bonuses like gift cards to woo new customers, click here.