Incentive - February 2009 - (Page 54) BEST BETS FOR GIFT CARD SUCCESS 1 Know upfront and communicate to the recipient the terms and conditions of the gift card being awarded, including expiration dates and any fees that could diminish the value of the card over time. Open-ended cards issued by banks, credit card companies and shopping malls tend to have expiration dates and fees. Some state laws have restricted retailers from imposing fees and expiration dates. “The tough economy has just brought to light all the things you should do anyway. Now there is just more appreciation for those best practices,” she says. “For instance, our clients are more aware of being sure they fall within the guidelines so that they can get tax benefits, and of looking more closely at the types of retailer cards they choose, so they are sure their incentive winners don’t have an unhappy experience.” “The end user may take their $100 gift card into a store where consumer promotions underway actually give them the ability to get $200 worth of merchandise.” seeing spending on gas, groceries and discount stores, and a decrease in their use for high-end merchandise,” she says. “There are GIFT CARD AWARDING still a lot of folks, OPPORTUNITIES of course, who For frequent, spot recognition . . .16.4% have their eye on something they For specific initiatives wouldn’t normally throughout the year . . . . . . . . . . .66.7% buy—people who When selected by award winners . .4.9% want that choice For annual awards . . . . . . . . . . . . . .12% even though they are financially Source: Incentive Gift Card IQ Survey 2008 strapped.” If a company does go with DUE DILIGENCE There is no question that gift cards have much in their favor as an award vehicle, such as flexibility, choice and the inherent value in a dollar-based card. That element of choice has never been more important, according to Patty Saari. She has observed a shift towards more utilitarian use, but she suggests using cards that allow for individual choice. “Even though the user can go anywhere with a prepaid Visa or Amex card, we are 2 Buy gift cards from reputable retailers. If a retailer has experienced any store closings, find out about the reasons behind them, and inquire about any store openings. Find out how many store locations will accept the gift cards, if they are conveniently located near the recipients, or if the cards are redeemable online at store Web sites. 3 4 Businesses using resellers and other incentive providers to order and/or manage their gift card programs should not hesitate to ask questions and have concerns addressed. Suppliers should be performing due diligence on gift card retailers and other issuers. Source: IGCC 54 INCENTIVE FEBRUARY 2009 | SPECIAL ADVERTISING SECTION
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