Incentive - April 2008 - (Page 76) GIFT CARDS the expectation that the variety of cards would be equally well-received by the winners. “Well, they weren’t,” explains Fenhaus. “One [or the cards] they blew out in the first thirty days, and they had to go out and buy more, but they were sitting on $750,000 of other inventory.” The shortage of one card meant some employees did not receive their first choice, while the extra inventory raised security concerns, since the cards were stored on-site and had to be protected from theft and carefully monitored. Fenhaus points to this as an example of why many in-house program planners avoid offering too many card choices. He says resellers can be valuable partners because they can handle a vast amount of inventory for dozens and sometimes hundreds of partners that clients can choose from you do as a core business and do it well, don’t try to be everything to everybody.” Going through a gift card reseller, according to Ruege, allows an organization to offer its employees a more expansive gift card program, while “a lot of administration and a lot of additional costs and reporting that you’d have to do if you were just a standalone person” can be handled outside of the organization. Because their “core business” is gift cards and fulfillment, many resellers also provide the online platform on which employees redeem their rewards. They can create Web programs for the individual company, which can include the client’s logo, theme of the incentive program or “We have more leverage we get engaged and make that right for you.” –Michael Ruege, USMotivation (Hallmark works with over 350 retail partners), without worrying about over- or under-stock. Not only can Hallmark Insights handle the inventory, shipping cards to winners directly, it actually has permission to print gift cards and certificates on demand. This means the client incenting its employees never runs out of inventory, and also avoids any excess orders. Additionally, because Hallmark prints them, any expiration dates or nonuse fees its retail partners enforce (though these are becoming increasingly less common among retailer-issued cards) will be less of a concern, since the cards are printed on the day they are requested. “It’s that old marketing maxim,” says Ruege. “Do what any other customization appropriate to that particular program, and in which the reseller remains invisible to the recipient. In this way, recipients are not losing the motivational boost or brand connection that a smaller program run in-house might provide. Fenhaus cites a reward and recognition program his company put together for a major financial corporation. Hallmark set up an interactive site that launched off the company’s intranet, with all cards branded to their particular institution. The rewards mirrored the organization’s look and feel, and could be printed in any amount, “whether $5 or $10,000.” Additionally, the rewards could be broken down however the employee chose, so a $100 reward could be used as $5 for Blockbuster, $20 for Omaha Steaks and $75 for Macy’s. Fenhaus emphasizes that this flexibility also allows these kinds of platforms to work either for occasional lump-sum awards, or for incremental point-based awards, where an employee could save up for a large certificate, or cash out as often as he chooses. The extra influence resellers have with their partners can also allow organizations to create more unique gift card reward programs. The Portland, Ore.–based marketing and loyalty company Chockstone worked out such a program with one of Yahoo’s California offices. Yahoo’s leadership wanted to offer its employees quality coffee drinks that would provide a soft incentive boost to performance on a daily basis, but they felt it didn’t make sense for them to install a coffee bar in the office. Chockstone, working with the local branch of a West Coast coffee shop chain, a retail partner of Chockstone’s, set up a gift card program that gave Yahoo employees a monthly credit at the shop that they could redeem for anything they liked. At the beginning of each month, the card was “topped up,” according to Chockstone’s President and CEO Jeffrey Lipp. The employees had a steady supply of tea or coffee, and were more inclined to stay close to the office during breaks. Chockstone’s partnership with the coffee shop was a significant advantage in negotiating the terms of the program. Beyond choice, cost and convenience, resellers emphasize the more targeted service they offer corporate planners. Since resellers work especially with the incentive business sector, they are able to offer stronger assistance once the program is up and running. “The customer service level is obviously much more in tune with your needs,” says Ruege, pointing out that many companies that offer gift cards are not geared toward fitting them into a full corporate rewards program. “We give you a different way. We have more leverage, so if there are marginal customer service issues, we can get engaged and make that right for you.” Send comments to alex.palmer@nielsen.com 76 | Incentive | April 2008 | incentivemag.com http://incentivemag.com
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