SPECIALFOCUS: GIFT CARDS

What's Your Experience Quotient?

By Paul Nolan

Definitions

GIFT CERTIFICATES...
Vouchers with dollar or point values embossed on them. They can be personalized with a recipient's name, the giver's logo and, depending upon the vendor, can be replaced in case of loss or theft.

GIFT CHECKS...
Sometimes synonymous with gift certificates, gift checks usually refer to money orders issued by banks or credit card companies.

GIFT CARDS...
Plastic cards that come with a magnetic strip or code preloaded with a dollar or point amount. Typically not reloadable.  Available in two types: those that carry a major credit card brand and are redeemable at any merchant accepting the brand; and merchant-specific cards, like those issued by well-known retailers, that are redeemable only at the issuing merchant. The latter allows the giver to have more control over the trophy value of the reward.

DEBIT CARDS...
Often backed by a major credit card firms, these are redeemable at participating merchant outlets and often can be reloaded with monetary value, making them more suitable for long-term (12 months or more) sales incentive programs.

Gift CardsA chief concern with gift cards as incentive vehicles has been their tendency to come and go with little fanfare and even less memorability.

However, recent studies, including an online survey of SalesForceXP readers, indicate that sales managers (and card suppliers) are finding more ways to create trophy value along the lines of merchandise and travel experiences.

In fact, "experiences" are the key. Companies enhance the significance of a gift card - and any reward, for that matter - with careful attention to how it's presented, says Nancy Serrato, director of corporate gift cards for Blackhawk Marketing, a third-party specialist in gift card distribution, both at retail and in the corporate arena.

Ooooh...Ahhhh

Serrato also serves as the president of the Incentive Gift Certificate Council (http://www.usegiftcertificates.org), an association that promotes the use of gift cards in incentive programs.

"So much depends upon the presentation and the communication with recipients," Serrato says, adding that recognition among peers and supervisors is one of the most important aspects of any award, but perhaps more important when recognizing with gift cards.

And the category itself is beginning to emphasize the overall experience by introducing cards that are redeemable for memorable moments like day spas, racecar driving or a round of golf.

Gift cards also can be used to add value to larger merchandise or travel awards. Winners of an incentive trip, for example, can be given a gift card for a shopping spree at an upscale store near the resort, or an iPod can be awarded along with an iTunes gift card.

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See also in the May/June 2006 Special Focus:  Gift Cards

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