Canadian Retailer - Store 2013 - 9

RESEARCH
USE OF INCENTIVE AND REWARDS PROGRAMS ON THE RISE IN CANADA

Competitive advantage is name of the game in business. If you have it, you’re often well positioned to develop deeper relationships with your customers and stronger brand recognition. And although there isn’t one
sureﬁre tactic that will allow you to acquire that competitive advantage, there are many that you can leverage
in your pursuit. One tactic that’s on the rise in the country, according to the 2013 Canadian Incentive Trends
Survey, is the use of incentive and reward programs.

75.3% — More than three-quarters of the organizations
surveyed said that they use incentives and rewards to
motivate employees and customers. This is up from
65% in 2012.

62.4% — Nearly two in three organizations surveyed said “they did indeed get a leg up on the
competition” through their incentive programs,
representing an increase of 9.4% from 2012 (53%).

Year-to-year budgets
for incentive and
rewards programs
seem to be remaining
relatively consistent,
according to the results of the survey.

42.5% — More than four in ten respondents who said
that they use incentives do so for referrals to acquire
new customers and employees. This represents an
increase from 36% in 2012.
INCENTIVE AND REWARDS CONSIDERATIONS

Dakota
Systems
Manufacturing

65.4% — More than two in three respondents stated
that budget remained the most important consideration when choosing incentives. This number was
down 7.6% from 2012.

Farmingdale, NY

42.7% — The percentage of respondents who indicate that recipient satisfaction/participation is a
major consideration when deciding upon incentive
and rewards programs. This represents a growing
trend, up 11% from 2012.

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54% — More than half of those surveyed prefer to
draw from a selection of branded or “points-based”
catalogue merchandise as incentive giveaways.
This, however, was down from 59% in 2012.

We Stand Behind Your Products With Ours.

72.8% — The percentage of respondents who choose
to use retail gift cards for specific stores, restaurants or services as rewards. This number is up
significantly from 62.8% in 2012.
2 in 10 — More than two in ten respondents (22.8%)
cited “too difficult to administer” as the reason they
do not run incentive campaigns. This represents
an increase of 9.1% in 2011 (13.7%). Those who cited
“difficult to measure results or ROI” went up to
20.2% in 2013, an increase of 7.6% since 2011.

Dakota Systems Mfg.
345 Eastern Parkway
Farmingdale, New York 11735
631.249.5811 • Fax 631.249.5819
www.dakotamfg.com

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Canadian Retailer - Store 2013

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