GiftCard Partners Blog

It should be no surprise that in a tough economy consumers are finally using those gift cards that are stored in their kitchen drawer (OK, that’s me), in their wallet or left on their  work-desk for a while. FirstData reported last week that closed loop gift cards (those specific a particular brand vs. credit branded) are in fact being used more due to higher prices for core consumer products. “Armed with this in-depth analysis and actual industry data provided by the 2011 Prepaid Midyear Card Performance Update, executives will have the necessary context and perspective to make better business decisions about their prepaid programs.” Gift card buyers are now also armed with what the general public wishes to consume – gift cards.
Read the report, First Data’s Executive Summary: 2011 Prepaid Midyear Gift Card Performance Update      

Another study out this week, by the Incentive Research Foundation shows again, what the GCP team has known for years, cash incentives are not always the most effective.  According to this new research non-cash incentives such as merchandise, travel, and gift cards prove more effective than cash rewards.  Employees find them to be more valuable.  They drive more competition in today's tough economy, and are viewed as a special treat, rather than cash that could be spent on bills, or groceries.  Non-cash incentives must be used for a special occasion, whether it is a trip, or "free" merchandise purchased through a gift card. The trophy value of gift cards and other non-cash incentives is also important in today's economy.  No one wants to lose their job, or feel as though their job is in danger, these kinds of incentives serve as better reinforcement of behavior than cash.  Employees take more notice of other employees receiving non-cash incentives, rather than a check that is often included in an employees regular paycheck.   So when beginning to think about end of quarter, or end of year bonuses and rewards, think outside the "cash box."  
For more information on the Incentive Research Foundation study click here.

It's baack, we have blogged about it before, but now it walks among us, so it seems time to revisit Google Wallet.  It is the first smart phone app, only available on a very select few smart phone models, that allows you to complete payment transactions using your phone, instead of a credit card, or the prehistoric form of payment, cash.  Google wallet is revolutionizing commerce, and how people recieve rewards.  Imagine how easy it would be for a company running a health and wellness program to simply place electronic CVS/Pharmacy gift cards in their employees' Google Wallet accounts, instead of going through the hassle of ordering physical cards, and having to have the cards activated. As revolutionizing as Google Wallet could be, it will still take time to catch on.  For one, it is not yet widely available, and it would be a bit of a stretch to say that people will switch cell phones, or even carriers for this technology.  Additionally, it remains to be seen how many consumers will actually use the technology, given that a wide margin have expressed discomfort in using mobile technology for financial purposes, give the possibilities of identity theft and hacking. Google Wallet will revolutionize commerce, and the face of the gift card industry, just not immediately.  
For more information on Google Wallet, from someone who has actually tested the technology, click here

Raises matter. In fact, fair compensation is a baseline expectation for today’s workforce. But if you're relying solely on salary increases to drive satisfaction and retention, you're missing the mark and possibly missing opportunities to strengthen employee engagement in more meaningful ways.

The number of consumers shopping across multiple channels is expanding while retailers everywhere face margin challenges and an uncertain economy. Consumers will seek information both on-line, and through mobile technology but will only shop in the most convenient channel. Multi-channel retail has become theexpectation (and a competitive advantage). This strategy allows the company to be everywhere the consumer is shopping, and lowers the risk the shopper will inquire at their outlet, and spend their money elsewhere. The difficult part of multi-channel retail is making the transition and keeping up with the consumer trends. How are multi-channel retailers reacting to this change in consumer shopping?