Gift Cards are the top reward in today's enterprise incentive programs, They are preferred by the recipient, more impactful than other rewards, and the incentive planner's number one choice. This presentation is a simple walkthrough of some industry data around using gift cards in reward programs.
2. Gift Cards - what people want!!
62% Of shoppers said they would like to
receive a gift card. This makes gift cards
the most requested gift item 8 years in a
row.
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- National Retail Federation, Oct 2014
“No longer impersonal or only
about convenience, gift cards have
become the perfect, practical gift
item for millions of holiday
shoppers,” said NRF President and
CEO Matthew Shay.
3. Gift Cards Motivate
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Reward Preference of
Incentive Planners*
Gift
Cards
75%
Other
25%
• Prepaid Cards are the most used reward in incentive
programs. (IRF, It’s in the Cards, 2012)
• Non-cash rewards/recognition in orgs. Linked to
increase year of year revenue by 9.6% v. 3% in orgs
no using them. (Aberdeen, Non-cash Incentives, 2012)
• Majority of people enjoy the experience of receiving
gift cards to cash in an incentive program.
(http://theirf.org/Prepaid-Gift-Cards-inIncentive-Reward-and-Recognition.6087263.html)
* IRF, It’s in the Cards, 2012
4. Gift Cards Have Impact
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• 65% of Gift Card
recipients, remember what
they purchased and
associate it positively with
the company that gave the
reward. (Loyalty 360, Its in the Cards,
2013)
5. Gift Cards Are Effective
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How do incentive planners view the impact and effectiveness of gift cards?
This would include trophy value, buzz generated, and behaviors influenced
75% say most
effective or among
most effective
reward!
6. Gift Cards Increase Engagement
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Engagement with leading CRM platform increased 600% when
a gift card was included in the recognition platform (versus just
sending badges).
National loyalty program members interacted with the loyalty
program 5X more frequently when digital gift cards/instant
rewards were added to the program.
Refer-a-friend consumers were 9X more likely to refer a good
or service to a friend when a gift card was given as
consideration for the act.
7. 7
1. TROPHY VALUE :: Gift Card purchases are more memorable – they
create a lasting reminder of achievement
2. VIRAL VALUE :: Recipients tell each other how they redeemed their gift
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cards
3. MORE DISCRETE :: It’s polite to discuss receiving a gift card
4. TRUE GIFT PERCEPTION :: Gift Cards are not viewed as part of
compensation
5. GUILT FREE SPENDING :: Recipients don’t feel guilty treating
themselves
6. PLEASING LOVED ONES :: There is a strong motivation to earn an
award for one’s significant other or children
7. LONG TERM POSITIVE FEELINGS TOWARD ORGANIZATION :: Gift
Cards reinforce positive associations with sponsoring organizations
Top Seven
Reasons
Gift Cards
Are More
Effective
Than Cash
All info taken from white paper published by the IGCC -
http://www.usegiftcards.org/?page=WPFileLib