Premium Incentive Products - Inspiration for Motivation Newsletter Features

Feature Story

August 2017


Growing Incentive Gift Card Market Provides Opportunities

Recent Inspiration for Motivation Feature Stories

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Survey: Employee Recognition Widespread - June 2017

Study: Financial Services Industry Needs to Focus on Engagement - May 2017

IRF Research Looks at Wellness in Meetings & Incentive Travel - April 2017

Few Global Companies Prepared to Build Organization of the Future - March 2017

What Are the Top Trends for Incentive Rewards, Recognition & Travel in 2017? - February 2017

Burnout: Study Reveals Big Workforce Challenge in 2017 - January 2017

Survey Looks at Holiday Gift Practices - December 2016

Culture & Communication Are Critical for Sales Compensation Policies - November 2016

Despite Tech Revolution, Younger Workers Want In-Person Collaboration - October 2016

Report: Small Biz Uses Merchandise to Motivate - September 2016

Workers Want Insight on How They Affect Bottom Line - August 2016

Incentives Market Reaches $90 Billion Annually - July 2016

Report Reveals Proven Ways to Create a More Human Workplace - June 2016

Employers Falling Short in Recognizing Millennials - May 2016

SHRM Survey: Employee Job Satisfaction Hits 10-Year High - April 2016

Which Generation Is Most Engaged? Survey Says: Gen X - March 2016

IRF Spotlights Top Motivation Trends for 2016 - February 2016

Bersin by Deloitte Looks at Growing Challenges in Engagement, Productivity - January 2016

SHRM Says Fewer Are Hosting Holiday Parties for Employees This Year - December 2015

New IMA Study Examines Award Preferences, Dispels Myths - October 2015

IMA Recognizes Five Firms with Circle of Excellence Awards for Successful Incentives - August 2015

Results of a new research study show the majority of U.S. businesses are increasingly using gift cards as a reward tool for multiple groups (channel, sales, employee and customer), and that investment in gift card rewards is both significant and growing.

The study from the Incentive Gift Card Council (IGCC), a strategic industry group within the Incentive Marketing Association (IMA) and the Incentive Research Foundation (IRF) provides encouraging news for the gift card and payments industries.

"The increase in gift card spending across mid-sized and large businesses shows an exciting uptick and having the study results helps our IGCC members optimize opportunities in the B2B marketplace," said Ashley Harris, IGCC vice president of education and director of strategic partnerships, National Gift Card. "Gift cards are an important option in incentive programs and will continue to grab a significant market share," Harris added.

"Looking beyond the incentive space, the impact of gift cards on the payments industry is expanding significantly. Gift cards, particularly digital cards, are becoming a form of branded currency and an increasingly important player in the payments industry," Harris explained.

Key findings from the IGCC/IRF B2B Gift Card Buyer study show:

  • The majority of U.S. business choose to use gift cards as a reward tool for not one, but a number of groups (channel, sales, employee and customer): 61 percent of large companies are purchasing gift cards for an average of 2.4 different reward and recognition audiences; 69 percent of mid-size companies are purchasing gift cards for an average of 2.8 different rewards and recognition audiences.
  • U.S. business investment in these tools is both significant and growing. On average, mid-size firms with significant enough gift card purchases to qualify for the study are spending $450,000 per year on gift cards across all programs, the largest firms are spending more than $1 million. 71 percent of mid-size and 52 percent of large companies say their B2B gift card spend is increasing.
  • As a developed market with a number of buying options available, U.S. businesses have firmly developed opinions on the types of partners from which they buy. Within the largest firms, gift card suppliers receive the highest ratings on choice, ease and service, followed closely by agencies. Brands are seen as easy to work with, but offer less choice and service than alternatives. Online general merchants and retailers are easy to work with and offer a variety of options, but lag agencies and gift card suppliers on service.

In conducting the study, responses were measured by whether the gift card rewards were for sales, channel, employees or customers. Sales and customer budgets are the highest for large firms, while channel budgets are the largest for mid-size firms.

To learn more, visit www.usegiftcards.org and www.theirf.org.