GiftCard Partners Blog

Incentive programs play a critical role in driving employee performance, engagement, and retention. But managing one internally can be time-consuming and complex—especially for HR teams juggling multiple priorities. That’s why outsourcing certain aspects of your incentive program can be a smart, scalable solution.

2015 gift card sales in the U.S. reach $130 billion, a 6% increase over 2014.

2015 gift cards sales are just the beginning as gift card sales are predicted to reach $160 billion by 2018. E-gifting had the largest increase, rising to 26% in 2015, representing $7.1 billion in volume. E-gifting is also expected to support the overall payment industry growth. Long-term prospects for e-gifting remain promising as more payment services become mainstream and plastic cards make the switch to digital.

What is third party distribution?

You have seen third party distribution when you’ve walked past the gift card displays at your grocery or pharmacy but may not know it by name. Third party is a common term in the B2B Gift Card Industry. It’s the opportunity to sell gift cards in retail locations that are independent of the brand represented on the gift card. By definition, third party sales refer to the three companies involved when selling to the consumer: the brand on the gift card, the company that sells the gift card, and the company that manages the operational component of the transaction. For most gift cards programs, third party represents their largest sales channel and the greatest opportunity for consumer awareness and marketing. Why’s this? Consumer traffic!

The holidays are rapidly approaching and we have the latest in shopping and holiday gift card trends for this season!

According to the National Retail Federation’s Holiday Consumer Spending Survey, consumers will spend an average of $805.65 on food, decorations, gifts, and more this holiday season, the highest amount in the survey’s 15-year history! Top findings of consumers surveyed showed:

Imagine offering merchandise or a gift card instead of a standard $10 off incentive to drive sales. Changing your discount structure in such a way may seem crazy but new research from Ifeelgoods may have you thinking differently. The research revealed that, if given a cash-based offer or a non-cash reward, consumers carried more brand equity and purchase intent than when retailers put more cash back in consumers’ pockets. The study revealed that non-cash incentives had diverse positive correlations with consumers including: