Why are gift cards more compelling than cash, from a corporate point-of-view?
The number one in popularity for corporate incentives, gift cards are more effective than cash. A study done by the Incentive Federation consistently indicated that merchandize and travel-related incentives were more attractive than cash – and in the merchandize category, gift cards were the most popular award items. Roughly 3 out of 4 respondents agreed that they could build a more exciting and memorable program using merchandize and gift cards than they would using cash.
How do companies utilize gift cards in their incentive programs?
- Recognizing performance
- A matter of sales incentives
- Business gifts
- Spot rewards
- Consumer promotions
- Wellness programs
- To begin/ maintain a business relationship
More than 4 out of 5 respondents believe that merchandize and gift cards are remembered longer than cash rewards. Gift cards provide a certain level of flexibility and versatility of cash without the downsides.
There are 10 core reasons why gift cards are more superior to giving cash incentives – they are as follows:
- Trophy Value – A gift card purchase is more memorable, and creates a lasting reminder of their achievement
- Viral Value – The employees will tell each other how they spent their gift cards
- More Discrete – It’s more polite to mention non-cash awards. It is viewed as more socially acceptable to discuss
- True Gift Perception – Gift cards are not viewed as a part of a compensation plan. Cash is quickly viewed as compensation and disappears into the family budgeting.
- Universal benefits – Gift cards combine the benefits of merchandize with the benefits of cash. People prefer to have the choice on how to use their awards.
- Guilt-free Spending – Recipients do not feel guilty about treating themselves.
- More Likely to Improve Work Performance – Studies show that cash does not improve work performance.
- Family Support – Due to the family often being involved in the selection of the awards – they are more likely to support the participant’s goals.
- Pleasing the Loved Ones – There is a stronger motivation to earn an award for one’s significant other or their children.
- Long-term Positive Feelings Towards Organization – Gift cards can reinforce positive associations with sponsoring companies
So why not use gift cards a matter of rewarding your employees for a years good work, or reaching a goal they set for themselves? If you want to know more about our gift card API solutions, then contact us at firstname.lastname@example.org and we’ll get back to you.