The Secret to High-ROI Sales Incentives (That's Backed by Research)

If you’re investing in sales incentives, you want more than activity — you want measurable impact, motivated teams, and clear ROI.

The Industry Outlook for 2026: Merchandise, Gift Cards, and Event Gifting from the Incentive Research Foundation (IRF) offers the latest insights into non-cash rewards trends. The report surveyed 400 industry professionals across North America and Europe in 2025 and projects trends for 2026, including how organizations are using gift cards and other non-cash incentives to engage and motivate employees.

Here’s what current data means for your sales incentive strategy.

1. Incentive Programs Remain Strategic — Even Amid Cost Pressures

Across North America and Europe, organizations are entering 2026 with rising economic confidence, even as budgets remain flat and costs increase. In this environment, incentive professionals are being strategic about how they deploy rewards, balancing cost management with meaningful impact.

Highlights from the 2026 outlook:

• Over 90% of organizations express a positive economic outlook for 2026.
• 65% of North American programs and about 50% of European programs expect an increase in the number of participants receiving non-cash rewards, even if per-person expenditures are more carefully managed.

Takeaway: Incentive programs are not being cut; they’re being redesigned for efficiency and reach.

2. Gift Cards Are the Most Widely Used Reward — and Still Growing

The report finds that gift cards remain the most widely used reward type in incentive programs, and their use is expected to increase in 2026.

• Nearly 70% of North American organizations anticipate moderate or significant increases in gift card use.
• Just under 60% of European organizations expect the same.

This continued preference reflects gift cards’ unique advantages:

• Choice and flexibility: recipients can choose what matters most to them.
• Ease of distribution: especially digital delivery.
• Budget control: organizations can manage spend while maximizing perceived value.

Interestingly, dining and restaurant gift cards have risen in popularity in North America, surpassing online-only retailer cards — reflecting a growing emphasis on experience-oriented rewards.

What this means for sales incentives: Gift cards continue to deliver high motivational value because they let recipients personalize their rewards — an increasingly critical factor in 2026.

3. More Recipients — But Smarter Spending

Although many organizations expect to serve more participants in their non-cash incentive programs in 2026, per-person spend is tightly managed.

Across North America, average per-person non-cash incentive spending has decreased slightly, meaning organizations need to do more with the same budget. This reinforces the importance of:

• offering reward choice
• using technology to scale administration
• focusing on reward types that maximize perceived value, like branded gift cards

The bottom line: You don’t have to pay more to motivate more — you have to reward smarter.

4. Merchandise Still Matters — But Gift Cards Lead

Merchandise remains a core reward category, especially in programs that blend multiple reward types. However, gift cards are now the most common reward overall, and growing faster in allocation.

This trend signals a shift in how companies design incentives:

• moving from large, one-off rewards
• toward frequent, choice-driven, scalable recognition

For sales teams, this means reward programs that align with how your people actually shop, spend, and experience recognition.

What This Means for Your Sales Incentive Strategy in 2026

Here’s how to apply the latest research to maximize results:

✔ Keep Gift Cards at the Core

Gift cards remain the top non-cash incentive and their popularity is still growing. They’re flexible, easy to distribute, and highly valued by recipients.

✔ Reward More People, Not Just Top Performers

With participation expected to grow in 2026, focus on broad-based engagement rather than reward scarcity.

✔ Use Technology to Scale

Modern reward delivery platforms let you offer choice, automate fulfillment, and track performance, all with less administrative burden.

✔ Balance Reward Types

Blending gift cards, merchandise, and recognition creates a richer incentive experience that drives engagement across diverse teams.

Ready to Make Your Sales Incentive Programs More Effective?

If you want to align your sales incentives with the latest research for 2026, now is the time to modernize your approach.

👉  Explore how the Engage2Reward™ Gift Card Ordering Platform helps you create flexible, choice-driven incentive programs that deliver results or give our team a call today to learn more.