How to Use Gift Cards for Effective Incentive Programs
The benefits of using gift cards in incentive programs
Gift cards are an easy and convenient way to give the gift of freedom and choice. But that’s not all! Businesses are using gift cards to recruit, motivate and recognize their employees through incentive programs. Moreover, they are using them to reward achievements, build trade traffic and forge strong relationships with distributors and dealers.
So what makes gift cards so special? And how can your business benefit for them to achieve concrete and measurable results? Read more here to find out.
Gift cards mean results:
Studies prove that using gift cards in loyalty and incentive programs can achieve the following results:
- Increase sales.
- Improve employee job satisfaction & performance.
- Increase employee loyalty.
- Encourage teamwork.
- Create new markets.
In fact, the gift card industry plays a big role in building incremental sales in both B2B and B2C markets.
But what makes gift cards even more desirable than cash?
When thinking of rewarding your employees, there are many reasons why you should consider gift cards over cash. Below are a few important ones you should consider:
- Gift cards are more memorable.
- It is hard to confuse them with compensations.
- They can be branded, personalized & customized.
- Gift cards include administrative benefits including redemption options and usage tracking.
Applications of gift cards:
Gift cards can serve a variety of functions in your business incentive programs including:
Given their trophy and halo value, gift cards are great tools for recognizing employee efforts and achievements. The trophy value comes from the fact that gift cards can be used as marks of accomplishment. As for the halo value, it is derived when your employees are reminded of their accomplishments as they plan to receive and use the merchandise.
Gift cards also work well as sales incentives. Since they are available in different denominations, they are flexible enough to reward incremental sales volumes and are perfect as a one-time reward for a job well done.
If you are looking for a popular and well received reward for repeat purchases, gift cards are also the way to go. The more you reward purchases with gift cards, the more people would choose to purchase from your store as opposed to other stores they often frequent.
How should you choose your gift card provider?
As a business, what questions should you ask before choosing a gift card provider?
- How can employees redeem their cards?
- If redeemable only at specific retailers, how far are these retailers located?
- When do the gift cards expire?
- Does the provider offer branding options?
- Can the provider imprint the recipient’s name on the gift card?
- Does the provider have a website for registering his/her gift card and checking the balance?
- Do you get a discount for buying in bulk?
- What is the step up fee for issuing the gift cards?
- If the gift cards are lost or stolen, can they be replaced?
To wrap it up…
If you are looking for the perfect gifts for your employees, gift cards seem to be the preferred motivator! Not only do they build on the strengths of non cash incentives by being memorable and easily redeemable, they also offer the power of choice.
We are looking forward to providing you with more useful information so be sure to visit us back real soon!