According to Stored Valued Systems, 80% of US consumers said they would rather receive a gift card to their favorite retailer/restaurant than any other kind of gift.
A 2005 survey undertaken by the National Retail Federation showed that over 50 percent of respondents listed a gift card as their favorite present to receive.
Incentive gift cards have mainstream awareness, as indicated by a research survey conducted by First Data Corp. a global leader in electronic commerce and payment services. Two-thirds, of survey respondents state they were already extremely or very familiar with gift cards. During past purchase decisions, over half stated the gift card incentives influenced their purchase decision.
A recent study from payment solutions provider Comdata showed gift cards in the teen age market is rapidly expanding. According to the study, around 98 percent of teens between the ages of 14 to 19 said they have either purchased or used a gift card.
Gift cards are 58% more effective at motivating customer and employees than other tactics and tangible rewards.
Gift card sales in both the corporate and consumer sectors are expected to rise from an anticipated $400 billion this year to as much as $600 billion in 2010, according to the Incentive Gift Card Council (IGCC), a strategic group within the Incentive Marketing Association (IMA).
Consumers start to view sales promotions as part of their buying decision criteria and it provides reluctant decision makers an incentive to make a choice (premiums increase the value offered by a particular brand). Sales promotions can create immediate boost in sales
"Make no mistake. Gift cards are and will continue to be an extremely popular — if not the number one - choice in incentive, reward, loyalty and recognition programs," said Incentive Gift Card Council President Andrew Dodge.
The primary driver for the growth of gift cards is that a gift card allows a recipient to choose the gift they really want.
It's important to offer rewards that appeal to the masses- choice is the best way! A program must offer enough choice so that each individual can be rewarded with something he/she feels a personal connection with.
Companies want to create solutions that reward their clients and give the selection people expect.
The Incentive Federation found more than three quarters of companies view incentives as an investment tool rather than a cost.
