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Saying Thank You to Employees (and…Hang In There)

The Prepaid Press recently published
Employers Find Ways to Say ‘Thank You’ to Employees; Prepaid cards Increasing as Incentive of Choice which highlighted Young America’s recent research regarding prepaid cards (such as gift cards) gaining even more popularity amongst corporate HR incentive programs. With company-wide salary freezes and abandoned bonuses, employers are struggling more than ever to retain their best employees. “…employers who want to retain their best employees admit they have fewer resources to do so, and many are turning to structured incentive programs, which cost less than salary increases and often result in high levels of employee productivity, positive feedback and loyalty," said Joe Custer, president of Young America. A few highlights of the survey findings:

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Good News Growth for Prepaid and its Gift Card Segment

Prepaid and gift cards sales are amplified with new activity as technology paves the way to better than expected growth. Mercator Advisory Group recently reported that all segments of closed-loop prepaid exceeded their previous forecasts for 2010. In-store gift cards were forecasted at 4% growth for 2010, but total load volume hit $84.6 billion, up 10% from $76.9 in 2009. The B2B gift card market realizes much of this growth via gift card categories like digital-content (online games and social networking credit) and prepaid mobile; gift cards received more loads for these digital-content activities. Retailers are also doing a better job of integrating their gift cards with loyalty programs and other consumer promotions, which catches the attention of potential incentive and rewards buyers. “Loads on employee and partner incentive closed-loop cards increased 10% and loads on consumer-incentive cards also grew 10%”, states Digital Transactions in their Mercator report overview:
Buoyed by Gift Cards, Closed-Loop Prepaid Grew Faster Than Expected in 2010 “On the whole, what we’re seeing is even the closed-loop market is showing some resilience in the face of the economy,” Jackson says. Consumers seem to be recognizing the true value of their gift cards, and “many retailers are doing a better job of integrating their gift cards with loyalty programs and other promotions, Jackson says. “They’re realizing that gift cards are not just a plastic version of paper gift certificates,” he says. Source:
Digital Transactions: Buoyed by Gift Cards, Closed-Loop Prepaid Grew Faster Than Expected in 2010
 

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Prepaid Expo: Social Media Critical to Growth of Prepaid

You are likely either a marketer or involved with the prepaid & gift card industry OR BOTH (like me). We love this video and we love how the Prepaid Expo is looking beyond traditional information sources and prepaid to bring us their take on the next generation of prepaid.
 

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New Research Reveals Cards Drive Increased Spending, Visits and Willingness to Support Social Marketing

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.

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Prepaid Congress Debrief: E-Certs

GiftCard Partners attended the 2nd annual Prepaid Congress this week, so over the coming week or so we will be posting information from the Congress. E-certifications, are an emerging closed loop gift card technology within the incentive industry that allow retailers to instantly deliver incentives to their customers through either cell phone technology, or online.  According to the Mercator Group 33% of retailers in the U.S. currently offer e-certification incentives.  E-certifications can save incentive companies fulfillment charges, and provide instant gratification to the customers receiving the incentives.  E-certifications are opening up new markets for retailers who are able to participate because e-certifications are opening up new avenues to contact customers and deliver marketing messages.  Some studies even suggest that e-certs are more effective at delivering memorable long lasting marketing messages than physical gift cards.

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