Incentive - February 2009 - (Page 63) AWARDS but are looking to reward the employees who are doing more than usual, considering the economic climate. Part of Ovations’ continued success may relate to the rising interest in individual travel incentive awards as an alternative to group travel, but Ward believes it also has to do with how easy it is to budget the cost of travel cards, as opposed to the unpredictables of a trip. Claim Jumper’s b2b customers, both those who order direct and those who go through the company’s Web site, “It seems like there’s a mix,” she says. “There’s still a large percentage of our customers who are continuing to purchase and seem to think it’s imperative to continue to reward their employees—whether it’s for doing a good (Fenhaus notes that this is a particular strength for Hallmark Insights, considering its affiliation with Hallmark Greeting Cards). Even animated e-cards can be an effective way to boost the connection. “They may be able to lower the denomination a little bit, but spice it up in other ways,” he says. “It’s not the Back to Basics Eva Goodroe, gift card senior sales specialist for Lowe’s, also has yet to see a major change in the b2b space. “We really haven’t seen [an impact] on the b2b side yet. Everything’s been going pretty strong there,” says Goodroe. “I don’t know if it’s because it’s the end of the year and [clients are] still going through their 2008 programs that were already in place, but we really haven’t seen much change yet.” Goodroe does see an increasing interest in more “back-to-basics” gift cards, which works to Lowe’s advantage. Just as before the recession hit, employees are looking to be rewarded with “something they might not necessarily buy themselves.” But as individuals cut back more and more on their spending, that term now describes a much wider range of merchants and rewards than it did last year, including products for the home found at Lowe’s. Or a dinner out with the family. Shaun Krusmark, director of gift card sales for Claim Jumper, says she is seeing a continued interest in dining gift cards and their value as a reward to the many overworked employees at all types of companies. “Especially with people cutting back— going out to eat or having a nice restaurant to go to makes a nice gift,” says Krusmark. With that said, she acknowledges that some customers have been scaling back their orders. After speaking to many of “They may be able to lower the denominations a little bit, but spice it up.” —Keith Fenhaus, Hallmark Insights job, or they’ve worked for the company for a long time. But they definitely have bought into the idea that you have to do something to recognize the employee, and a gift card makes a perfect fit.” Keith Fenhaus, president of Hallmark Insights, based in Minneapolis, Minn., has been emphasizing to his clients how much flexibility they have to make a gift card program work, even on a tighter budget. “We’re saying, ‘Don’t eliminate the program,’ ” says Fenhaus. “Get creative in how you’re using your budget dollars. If you were doing $50 for a nice thank you, maybe make it $25.” dollar amount of the award, it’s that you took the time to recognize.” Getting a little more consistency across departments to ensure certain groups aren’t over- or under-spending in their recognition is also a good way to reduce costs and open up the conversation on how the company is awarding its employees. For example, the finance department might think $25 is a hefty gift while the marketing group might see $100 as perfectly fine. Hallmark offers its own “Award Wizard” that asks for a description of the employee’s accomplishment and suggests an award level. By most appearances, gift cards are showing resilience during these challenging times, in large part due to the flexibility and choice they offer, which have made them a popular reward for years. “From what I can see, the b2b category will remain strong,” says Goodroe. “It’s up to us in the gift card space to continue to share reasons why they should use gift cards.” I Send comments to alex.palmer@incentivemag.com incentivemag.com Looking Beyond Dollars While gift cards make it simple to adjust the value of the card or the merchant, Fenhaus stresses the nonmonetary aspects of gift cards as important value-add options. Incorporating personalized thank-you or greeting cards with the gift card is an easy way to add value to a gift without having to add another $20 to the balance | February 2009 | Incentive | 63 http://www.incentivemag.com
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