Tuesday, October 29, 2019

Gift Cards Preferred Gift for Incentive Programs



In 2017, research by InComm, the market leader in new payment technologies and solutions, found that consumers turn to gift cards for many life events not just the holidays

For years the award industry judiciously fought the onslaught of gift cards as a reward in incentive or recognition programs.  They asserted that because they are cash like, they are the same as cash and should not be used for awards for the same reasons you really shouldn’t use cash for awards.  The real reason for that debate was that the traditional incentive award companies had profits exceeding 80% on merchandise awards and 10% or less on gift cards. 

Gift cards succeeded because they have become a way of life in our culture.  They are particularly suited for safety awards in behavior based safety systems, where the lower denominations of $10 or $25 are easy to use to reinforce positive safety behaviors on an ongoing basis.  It’s what many award winners want because they can get the award they really want in the most cost effective way.

Now, according to the research we find that gift cards are being used for 82% of birthdays, 39% for graduations and 52% as a thank you. 

In these instances the 92% of the survey respondents gave two or more gift cards and 54% gave five or more.

In addition, 82% said they would appreciate receiving a gift card for those occasions as well.

Younger consumers are finding even more occasions in which to give a gift card.  Millennia respondents between 25 and 34 noted they often give cards for things such as new babies and new home ownership.

Gift cards are appropriate for any number of occasions, alleviating much of the stress that can come with shopping for “just the right gift.”  This versatility benefits both the giver and the recipient. 

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


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