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.
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