Gift cards Are Not “Valued Safety Awards”

I recently saw a blog post that stated that cash as an award is quickly forgotten after it is received, probably so.  The post then went on to say that 40% of all gift cards received were not “cashed” within the first year, and were therefore like cash thus adding to the premise that they have no value to the recipient as well.

Frankly that is quite a stretch of deductive reasoning, and the facts are not quite right either.  First, the non redemption for all consumer gift cards has been pegged at 7% according to a study by Consumer Reports.  Second, it doesn’t necessarily follow that non redemption of total gift cards in the consumer market equates to the same non redemption when the card is used as an award. 

In our gift card award systems, the average non redemption rate is far below consumer national averages, and often less than 1%.  This is mainly due to the fact that in our systems, award winners get to choose the gift card they want from the most extensive list of popular retailers in the country.  When they choose the one the want, they use it.

One of the biggest problems we see clients make with gift cards is to buy the ones that they think people want, give them a very limited selection and not let them have the one that truly meets their lifestyle needs at the time. 

If you want your employee award programs to be successful, let your participants choose the card they want, not what you think they want. 

The fact remains that gift cards are the most asked for and most used award in the incentive industry.  They are perfect for continuously presenting small awards to your employees for improving safety behaviors. They are #1 because they provide the best possible choice at the least cost to you.

For more information on AwardSafety products or services or other white papers please contact us at awardsafetyinfo@cox.net.