It’s undisputable that gift cards are the workplace incentive of choice. Here are the answers to a few questions we are hearing around using gift cards as incentives or rewards for workplace safety programs.
It’s un-debatable that more employers than ever are starting health and wellness initiatives since the inception of the Patient Protection and Affordable Care Act (PPACA). There are tax benefits for employers who offer health and wellness programs and we’ve seen lots of studies about how incentives like gift cards for success compliment these programs by driving interest, engaging participants, while boosting benefits packages and lowering health care costs. But, the most important (and complex) question: Are employers really building healthier minds and bodies, while also increasing productivity? What about for the long term? A recent survey of more than 30,000 Ceridian LifeWorks participants presents us with a “YES!!”, via these results 1:
It isn’t new for us to hear that prepaid cards are great motivators and incentives. But a new loyalty and prepaid survey reveals just how much prepaid has affected consumer spending habits and long term adoption when used in the B2B space as incentives. Here, we outline some of the most interesting tidbits and pair them with our market observations and viewpoints. Let us know your thoughts via the comments field. “Prepaid cards are proving to be effective at motivating customers and employees to share positive feedback with their peers and social networks, among other behaviors.” Social media is proving to be a great way for customers to “Like” their favorite brands and retailers. In return, brands are using gift cards to reward this kind of loyalty and it starts becoming a way to attract new customers. We are also finding that prepaid and gift cards are offered over social media networks as part of workplace reward programs like nominating coworkers or teams for special accomplishments, redeeming “on-the-spot” rewards, and recognizing managers for good work and achievements. On spending patterns; these study points speak for themselves: • For consumers who had received a card as part of a contest or drawing, 43% ended up spending more than the value of the card. • 28% of consumers with incomes of $100,000 or more said they would be willing to make a purchase of three times the value of a $25 card. • While only 33% of respondents indicated they preferred a prepaid card instead of a check when receiving a rebate, that number climbed to more than 40% among consumers who had already received and used a prepaid card as part of an incentive or rebate offer. Stated simply, the more cards consumers receive, the more they want, as there was a direct relationship between experience with prepaid and preference towards the cards. “Although some consumers may be receiving prepaid cards as an incentive for the first time, the survey showed that most are quick to cash in on the value of the card, as 7 in 10 used the card within three months.” At GCP, we’re seeing a shift in thinking about breakage. At one time, breakage was seen as a positive thing, however, we now look at it as a missed opportunity to gain happy customers, brand loyalty and the increased sales beyond the denomination of the gift card. The report discussed here was prepared by Retail TouchPoints and commissioned by TSYS. Click here for the full Loyalty & Prepaid study findings & report.
They are all top of mind for consumers. As you read through this feature, consider what this could all mean for the B2B gift card market via incentives and loyalty programs. How can these programs be enhanced by social media and consumer trends like group couponing? Move over Groupon, Mr. 50 million strong. Facebook’s 600 million users are offered-up some of your group couponing action. But, is there really room for another Groupon? Business Insider’s Groupon survey suggests YES, as they start to see Groupon’s regular users become less active over time…
GCP publishes eNewsletters focused on health and wellness and incentive topics (sponsored by CVS/pharmacy) and we also publish partner sponsored eNews, which includes research, editorials and aggregated news stories to keep you informed on innovative gift card programs, legal and legislative issues and cutting edge gift card technologies. Fundraising and Scrip is a core program use for our gift cards. Check out this Fundraising eNews story: Step-by-Step Fundraising: What is Scrip? Scrip has been around for some 15 years; learn how this fundraising method has earned an estimated half billion dollars for charities nationwide. It's simple to raise money by shopping with gift cards for everyday purchases like clothing and dining. Learn more about gift card fundraising with Scrip. These cards are great choices for Scrip programs Subscribe to our eNews here!
The GiftCard Partners name and logo, and other trademarks are trademarks of GiftCard Partners Inc. and may not be used without permission. The names of other companies, products and services are the property of their respective owners.