Gift Cards Preferred over Cash Bonuses

Thursday 11 November 2004 00:36 CET | News

A spike in gift card and certificate giving is expected this holiday season as more employers say they prefer giving gift cards and certificates over cash to recognize and motivate employees, according to the Incentive Marketing Associations Incentive Gift Certificate Council (IGCC).

Currently two out of three corporate incentive programs include at least one gift card or gift certificate offer. According to the Incentive Federation, gift card and gift certificate use by corporations grew from 32 percent in 2000 to more than 54 percent in 2003 to become the fastest growing segment of the non-cash incentive industry. For businesses, gift certificates and cards offer many advantages over monetary incentives because they can be branded, personalized and customized for employees. These types of incentives have been shown to increase sales, improve employee performance and build loyalty according to a 2003 study by the Incentive Federation. Employers are increasingly recognizing these benefits according to the 2004 survey findings by Stored Value Systems, one of the nations leading suppliers of gift cards, which found one-third of employees say their employer has given them gift cards as incentives or rewards. An International Society of Performance Improvement study of incentive programs in 2002 revealed that an overwhelming majority of workers -- 92 percent -- said they achieved their goals because of incentives. Corporations say gift certificates and cards will be their number one choice for sales incentives in the future, according to the 2003 Incentive Federation Study of Merchandise and Travel Incentive Users. In the fourth annual Consumer Insights Survey commissioned by ValueLink, an industry leader in gift and spending card solutions and First Data company, 45 percent of respondents cited having their own shopping experience as a primary benefit of gift cards while 26 percent said they enjoyed the convenience and ease of use as the main advantage.

Free Headlines in your E-mail

Every day we send out a free e-mail with the most important headlines of the last 24 hours.

Subscribe now

Keywords: ,
Categories: Payments & Commerce | Payments General
Countries: World
This article is part of category

Payments & Commerce