Promo - September 2008 - (Page 37)

Continued from page 33 tioned. Ad specialties do this for 15%. “It’s no surprise,” says Steve Slagle, president of Promotional Products Association International. “Premiums have a high perceived value.” Yet fewer firms are boosting premium spending. Some 28% increased their premium budgets vs. 35% last year. Slagle attributes the lower spending to the recessionary business climate. “Given the economy, customers are tightening their belts,” he says. “This is reflected throughout the industry. We’re not anticipating a huge increase in sales.” How are most premiums distributed? Almost half of respondents use events or marketing tour giveaways as vehicles. “You can never underestimate the value of the human connection,” explains Rick Blabolil, president of both the Incentive Marketing Association and Marketing Innovators. “Hand-delivery of premiums for consumer promotions is becoming popular because it ties the incentive into an experience. It’s really about relationship management.” EMPLOYEE PROGRAMS TAKE A HIT What about employees? Of the companies polled, 25% run an internal incentive program, a slight dip from 2007. But 12% intend to establish one within a year. Among firms that offer programs, 67% have them for sales reps, down from 75% last year. Fifty-seven percent give incentives to non-sales staff, up from 51% in 2007. “Employee recognition programs usually get hit in the beginning,” notes Bruce Bolger, managing director of the Incentive Performance Center. “Companies feel they can cut down on them in tough times. What happens later in a recession is that spending generally goes up.” That seems to be the case. Thirty-nine percent indicate they’ll increase employee-incentive spending next year, while 43% expect it to remain the same. But those budgets will still be far below the average 2006 outlay, and low compared with spending on customer programs. “More companies are seeing they should do something, but the flip side is they’re cautious about how aggressive they get in a down economy,” Blabolil adds. How are employers rewarding workers? More than half give cash awards, vs. just 37.2% last year. “Cash will always be king,” Killian says. “It’s the ultimate gift.” Gift cards are a more distant second choice than they were last year. Experts say that tracks with the overall economy, where gift card sales are down 10% to 20% from 2007. “We aren’t concerned yet,” Killian adds. “It’s not a major gift time. Gift cards will continue to grow, maybe just not at the pace they have the last two or three years.” EMPLOYEES ��CUSTOMERS ��DEALERS ��PATIENTS ��REPS ��CLIENTS ��ANYONE With the SUBWAY®CARD! Give these great beneﬁts: • A convenient way to pay – reloadable and reusable • Good at more than 23,000 SUBWAY® restaurants across the US and Canada • NO expiration dates, declining balances or service fees EVER Manage your account at www.mysubwaycard.com. Check card balance, view use/purchase history, reload additional funds, set up auto-reload all online! 888-445-9239 ext 1314 SUBWAY® Card Sales INCENTIVES ENHANCE PERFORMANCE Beyond cash and gift cards, industry experts say it’s imporContinued on page 38 ©2008 Doctor’s Associates Inc. SUBWAY® is a registered trademark of Doctor’s Associates Inc. The SUBWAY® CARD is valid at participating SUBWAY® restaurants only. Card pictured is a generic representation and not the actual card that will be received. Promo / WWW.PROMOMAGAZINE.COM / September 2008 37 http://www.mysubwaycard.com http://www.mysubwaycard.com http://www.promomagazine.com

Table of Contents Feed for the Digital Edition of Promo - September 2008

Promo - September 2008 Contents Editor's Note Consumer Driven Magic Makeover Free Flight Legal Checkup Lasting Impressions Pop A Shop Commentary Squeezed Q&A: Eco-Friendly Champagne Tastes Safety First Resource Center The Agency Center Web Marketing 101 Index of Advertisers

Promo - September 2008

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