Incentive - February 2008 - (Page 70)

AWARDS I Prepaid in n a market as explosive as the prepaid gift cards segment, at every turn you have emerging trends, maturing markets, innovation and industry shifts. In 2007, the industry saw tremendous growth and adoption into mainstream markets in established verticals such as payroll, incentives, rebates and more. Meanwhile, we see a number of new, emerging trends and demands across the industry and within the business operations of our more than 1,300 clients and partners. electronic payments with a virtual solution (see below) or can ask their prepaid provider about more ecofriendly delivery options. The results can be staggering. Our automotive clients like Toyota have eliminated hundreds of thousands of checks by switching their sales incentives to a prepaid solution. Virtual/claimable payments. For organizations that cultivate a computer-savvy target audience, especially telecom, hardware/software and technology companies, or those with an online presence (who doesn’t have one these days?), there is a large trend of creating online “communities” and engaging the consumer in an extended relationship by cultivating an online “experience.” For these companies and agencies, there has been a triple-digit increase in virtual prepaid payments, and this is predicted to continue in 2008. A “virtual” or claimable payment is a prepaid incentive delivered via an entirely online experience. Your target is directed to your Web site (great for continuing the customer life cycle); they receive their payment or claim it, depending on your program configuration; then are able to spend funds immediately—online. Not only are companies enjoying the continued online engagement and branding that they receive with these payments, but it is a great mechanism for delivering extended messages and education. Oh, and I forgot to mention, on average, 30 percent of people will spend their reward back with the issuing company. Not bad ROI, is it? In 2008, technology, health and environmental friendliness will be leading the way and driving the emerging trends in prepaid adoption within incentives. Of course, the mainstays of our industry will continue to grow at a rapid pace, but we can count on these new trends to spur accelerated growth. 2008 By Andrew Newcomb Health care incentives. According to National Business Group, nearly half of large employers will be offering some type of wellness or health care incentive in 2008. As more and more companies are realizing the benefit of encouraging healthy behavior within their workforce, they are looking to maximize the impact of their incentives. Enter prepaid cards. Much like the evolution from checks to prepaid cards within the sales incentive segment, companies are attaching their wellness and health care incentives to tangible, branded and influential prepaid solutions; and they are achieving superior results. This industry is a benchmark for rapid adoption, and combined with other applications like rebates, will put prepaid cards in the hands of every household, regardless of demographic or occupation. Are we likely to see big changes in the market this year? You bet Sustainable payments. Everywhere you look, green is in. Companies looking to adopt more sustainable operations will look to eradicate waste and inefficiencies across the board. One of those areas is payments. A company issuing millions of checks annually can drastically reduce waste through a comprehensive electronic payments strategy, where you typically would see recurring payments issued by check. Companies can elect to use totally Andrew Newcomb is director, corporate development, global prepaid solutions for Ecount, a Citi company and member of the Network Branded Prepaid Card Association advisory board. For more information or to learn about Ecount Prepaid Solutions, please contact him at anewcomb@ecount.com; www.ecount.com 70 | Incentive | February 2008 | incentivemag.com http://www.ecount.com http://www.incentivemag.com

Table of Contents Feed for the Digital Edition of Incentive - February 2008

Incentive Magazine - February 2008 Editor’s Note: Archie and the Boys In The News Cover Story: On The Ball Incentives Incentive Primer: How to Use Sporting Events Incentive Interview: Jim Avery on Doing the Right Thing Employee Empowerment Motivates and Pays Dividends Hospitals, Nurses Win With Flexible Scheduling Legal Ease: Safety Programs and Unions Case Study: The Weitz Company Retains Its Boomers Potentials: Here and Now Star Power in the Kitchen Awards: Gift Card Trends for the New Year Travel News The Manhattanization of Las Vegas Classics Renewed: Monaco and France Advertiser Index Off The Cuff: Tumi’s Mike Landry

Incentive - February 2008

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