According to a study by research firm TowerGroup, gift card sales in 2007 reached $97 billion, a $17 billion increase from 2006.  On both the consumer and B2B sides of the business, things just seem to keep moving forward.  As the corporate incentives industry continues to explode, gift cards continue to play a major role in that growth. 

Fueled by this persistent growth and the maturation of gift cards as a corporate incentive, we’re seeing more and more organizations looking to improve the efficacy of their corporate gift card programs by customizing solutions to meet the needs of their end-user customers. 

ÜBER-TREND: CUSTOMIZATION

If there is one true über-trend in B2B Gift Card Incentives, it has to be customization.  The last few years have seen the concept of customization move from simply printing a name on a card, to complete customization of the entire incentive experience from end-to-end.  This process often includes customizing not only the name but the messaging, the creative and visuals, logos and co-branding, the carrier, related collateral material and many other aspects of the overall experience.

That being said, there is one major drawback to the trend toward customization – more customization adds more complexity. 

A recent poll by Incentive and Potentials  magazines showed that the number one reason why businesses use gift cards as incentives is ease of use.  Given that, it has become imperative to move towards customization without increasing the complexity of managing the program.  Added complexity might explain why, in another recent survey by Incentive magazine, only 30%  of respondents actually make use of customized or co-branded cards.  

Luckily for all of us, there are a number of other trends that are now making full B2B gift card customization a reality. 

TREND#1: CUSTOM FULFILLMENT

In keeping with this trend toward full customization of the gift card experience, we are starting to see a major move toward what is known as one-to-one fulfillment.  While this trend has many facets, in it’s simplest terms it refers to the practice of shipping B2B Gift Cards directly to end-user customers.  B2B customers have been asking for this feature for some time – and with good reason.  One-to-one fulfillment allows for the continuation of the customized gift card experience right through to the time of receipt.

Again, referring back to ease-of-use as the number one reason companies use gift cards, one-to-one fulfillment is an obvious extension of the trend towards personalization.  Producing a customized gift card, loading it – these things are only half the battle.  The job is not complete until the gift card reaches its ultimate destination. 

TREND#2: CUSTOM ACTIVATION

Customized Activation (or Single Card Activation, as it’s known in the industry), is another emerging trend we’re expecting to see more of in the coming months.  Essentially, Single Card Activation is the ability to activate a single card, or any block of cards from a larger order. 

The main benefit of Single Card Activation is security.  A Gift Card that enters the mail system loaded and activated (ready to use) can be a major liability for the purchaser if it falls into the wrong hands.  By contrast, an unactivated gift card has no real value and therefore, presents no security risk when shipped, stored or otherwise. 

In simple terms, companies can take advantage of cost savings by bulk ordering cards while still maintaining control by activating in small batches, or even one card at a time.  What’s more, by combining Single Card Activation with One-to-one Fulfillment, cards can be activated by the end-user, once they have safely reached their destination.  The ultimate combination of customization, cost-savings and security. 

TREND#3: CUSTOM LOADING

Perhaps the most powerful of all the new developments we’re seeing in the B2B Gift Card space is the ability to Auto-Reload gift cards.  Imagine…ship a gift card to the end-user once, then reload it at any time, with any amount required.  This idea combines the ability to truly customize the reward or incentive (exactly the right dollar value at exactly the right moment), with the considerable cost savings of printing and shipping a single card with multiple users.

Consider a group of 1000 sales reps across the country who are rewarded for exceeding performance quotas on a monthly basis. The rewards vary based on the excess of sales ($100 for $10,000 in sales, $500 for $50,000 in sales) and each rep is measured on an individual basis. 

Using the typical “one card, one use” model, it’s easy to see we have a potential to produce and ship 12,000 cards per year to this group (1000 reps x 12 months x 1 reward/month). 

By using Auto-Reload, we could immediately reduce this number to 1,000 cards per year, each reloaded up to 12 times.  The cost savings on card production and shipping could be staggering.  What’s more, the re-loadable card provides each rep a constant, tangible reminder of the need to perform consistently.  Lastly, the cost of customizing the gift cards is more palatable if less cards are produced.  At $1.00 per card, the difference in savings  between issuing 1,000 vs. 12,000 units is significant!

THE BOTTOM LINE: ROI

There’s no doubt that the trend toward customization in the B2B Gift Card space has been fueled largely by a search for greater ROI. 

Obviously, the investment in customization is paying off for many organizations, since usage continues to grow by leaps and bounds.  But improvements in top line performance are only half the ROI equation – the other half lies in the bottom line costs.  The movement toward One-to-one Fulfillment, Single Card Activation, and Auto-Reloading is putting true end-to-end customization within reach of most organizations. 

We are all witnessing a glimpse into the future of Corporate Gift Card Incentives – and that future is customization.

1. "2008 Incentive Gift Card Roundtable", March 06, 2008; Manage Smarter. Obtained at www.managesmarter.com
2. Incentives for Your Employees or Clients, Newsletter-December 2007. Obtained at www.giftcards.com

Summary
Rogers Wireless Dealers were looking for an incentive to drive consumer purchases over the holidays in a competitive landscape flooded with offers and promotions.

Business Challenge:
Dealers are national therefore required an incentive premium which would be:

• Relevant to all consumers regardless of demographic (i.e. geographical location or taste)
• Cost effective; preference was to purchase only what was required (difficult to forecast)
• Business was seeking a new channel by which incremental sales may also be acquired
• Reward had to be executed on the spot to encourage instant / impulse sign ups

How Hbc Gift Card helped:
Rogers Dealers worked with Hbc in advance of the Holidays on a 2 pronged approach to leverage upcoming December traffic:

• Set up booths in Bay stores across Canada during 4 weekends in December; booths were staffed by Rogers Dealers; captured on the spot sign ups for wireless packages
• Negotiated an insert with a coupon in the November Hbc Credit Card statement to drive traffic into Rogers Dealers locations
• Rogers Dealers purchased custom Hbc Gift Cards to use as gifts with purchase
• Relevant to all recipients as they were either shopping at the Bay at time of sign up and could use the gift card immediately OR were engaged Hbc shoppers who received a credit card statement which drove them to Rogers Dealer locations.
• Hbc stores are national 400 locations coast to coast (the Bay, Zellers and Home Outfitters). Cards expired at the end of December; Rogers Dealers paid for redemptions only (minimum purchase required).

Summer’s almost here and everyones out and about soaking up every minute of summer fun!

So what’s the first thing that comes to your mind when you think about June? The upcoming Holiday Season, you say? OK, maybe not. According to the last Hbc survey conducted through the e-newsletter, 33% of you stated that your main priorities for the Fall/Winter include strategic planning for the next year. Conversely, the same numbers of you are focusing solely on the executing of key objectives.

Here are 5 great reasons why you should start the planning process for the Holiday season long before the leaves begin to turn. Like the proverbial squirrel storing nuts for the winter, it pays to be prepared!

TO SUMMARIZE
The leaves may not be turning just yet and there’s no sign of snow on the horizon, but time still continues to tick away unabated. So take a lesson from that industrious little squirrel don’t let last-minute planning kick you right in the nuts.

Case Study: Auto Reload

Summary

• An employer with a large sales force was looking for an incentive product which would reward employees for meeting monthly quotas.

Business Challenge

• Sales team consists of Associates from varying demographics (gender, age, lifestyle).
• Required an incentive which would be relevant and useful to each recipient
• Employer desired a solution which would provide instant gratification for bonus spiffs and on the spot recognition.

How Hbc Gift Card helped

• Employer purchased co-branded gift cards featuring their logo and the Associate’s name.
• Each time desired behavior is achieved, value is added to individual cards – recipient does not have to wait for a new card to be shipped.
• Breadth of product available:
  • Over 1M products and services at any of the 400 locations of the Hbc family of stores (the Bay, Zellers and Home Outfitters).
  • Resonates with all demographics.

Results

• Currently in the 3rd year of the program – have ordered only a few additional cards for new staff.
• Clients running comparable programs shipped new cards 10-20 times more frequently and ordered about 400 card units during one year.
• Costs of co-branded cards and shipping charges significantly reduced with this program.
• Desired sales results achieved.

Case Study: One to One Fulfillment

Summary

• Our client manages incentive and recognition programs that help their clients get more from their sales productivity, employee engagement and customer retention investments.
  • Hbc gift card is featured as a redemption item for Canadian members of these programs
  • Gift cards were being shipped to each individual recipient via courier

Business Challenge

• Our client was looking to drive down high shipping costs without impacting the smooth fulfillment process

How Hbc Gift Card helped

• Gift Card orders are now submitted online by our client using a spreadsheet provided by Hbc
• Card carriers are printed with each recipient’s name and address on the back; inserted into an envelope and mailed via Canada Post within 5 days upon receipt of payment.

Results

• In the first quarter since the process change this client has enjoyed an approximate 86% reduction in shipping costs.
• Only 0.01% of cards shipped via Canada Post have been reported ‘lost or stolen’ – Hbc was able to transfer the balance from these cards onto new ones at no expense to our client.

According to a study by research firm TowerGroup, gift card sales in 2007 reached $97 billion, a $17 billion increase from 2006.  On both the consumer and B2B sides of the business, things just seem to keep moving forward.  As the corporate incentives industry continues to explode, gift cards continue to play a major role in that growth. 

Fueled by this persistent growth and the maturation of gift cards as a corporate incentive, we’re seeing more and more organizations looking to improve the efficacy of their corporate gift card programs by customizing solutions to meet the needs of their end-user customers. 

ÜBER-TREND: CUSTOMIZATION

If there is one true über-trend in B2B Gift Card Incentives, it has to be customization.  The last few years have seen the concept of customization move from simply printing a name on a card, to complete customization of the entire incentive experience from end-to-end.  This process often includes customizing not only the name but the messaging, the creative and visuals, logos and co-branding, the carrier, related collateral material and many other aspects of the overall experience.

That being said, there is one major drawback to the trend toward customization – more customization adds more complexity. 

A recent poll by Incentive and Potentials  magazines showed that the number one reason why businesses use gift cards as incentives is ease of use.  Given that, it has become imperative to move towards customization without increasing the complexity of managing the program.  Added complexity might explain why, in another recent survey by Incentive magazine, only 30%  of respondents actually make use of customized or co-branded cards.  

Luckily for all of us, there are a number of other trends that are now making full B2B gift card customization a reality. 

TREND#1: CUSTOM FULFILLMENT

In keeping with this trend toward full customization of the gift card experience, we are starting to see a major move toward what is known as one-to-one fulfillment.  While this trend has many facets, in it’s simplest terms it refers to the practice of shipping B2B Gift Cards directly to end-user customers.  B2B customers have been asking for this feature for some time – and with good reason.  One-to-one fulfillment allows for the continuation of the customized gift card experience right through to the time of receipt.

Again, referring back to ease-of-use as the number one reason companies use gift cards, one-to-one fulfillment is an obvious extension of the trend towards personalization.  Producing a customized gift card, loading it – these things are only half the battle.  The job is not complete until the gift card reaches its ultimate destination. 

TREND#2: CUSTOM ACTIVATION

Customized Activation (or Single Card Activation, as it’s known in the industry), is another emerging trend we’re expecting to see more of in the coming months.  Essentially, Single Card Activation is the ability to activate a single card, or any block of cards from a larger order. 

The main benefit of Single Card Activation is security.  A Gift Card that enters the mail system loaded and activated (ready to use) can be a major liability for the purchaser if it falls into the wrong hands.  By contrast, an unactivated gift card has no real value and therefore, presents no security risk when shipped, stored or otherwise. 

In simple terms, companies can take advantage of cost savings by bulk ordering cards while still maintaining control by activating in small batches, or even one card at a time.  What’s more, by combining Single Card Activation with One-to-one Fulfillment, cards can be activated by the end-user, once they have safely reached their destination.  The ultimate combination of customization, cost-savings and security. 

TREND#3: CUSTOM LOADING

Perhaps the most powerful of all the new developments we’re seeing in the B2B Gift Card space is the ability to Auto-Reload gift cards.  Imagine…ship a gift card to the end-user once, then reload it at any time, with any amount required.  This idea combines the ability to truly customize the reward or incentive (exactly the right dollar value at exactly the right moment), with the considerable cost savings of printing and shipping a single card with multiple users.

Consider a group of 1000 sales reps across the country who are rewarded for exceeding performance quotas on a monthly basis. The rewards vary based on the excess of sales ($100 for $10,000 in sales, $500 for $50,000 in sales) and each rep is measured on an individual basis. 

Using the typical “one card, one use” model, it’s easy to see we have a potential to produce and ship 12,000 cards per year to this group (1000 reps x 12 months x 1 reward/month). 

By using Auto-Reload, we could immediately reduce this number to 1,000 cards per year, each reloaded up to 12 times.  The cost savings on card production and shipping could be staggering.  What’s more, the re-loadable card provides each rep a constant, tangible reminder of the need to perform consistently.  Lastly, the cost of customizing the gift cards is more palatable if less cards are produced.  At $1.00 per card, the difference in savings  between issuing 1,000 vs. 12,000 units is significant!

THE BOTTOM LINE: ROI

There’s no doubt that the trend toward customization in the B2B Gift Card space has been fueled largely by a search for greater ROI. 

Obviously, the investment in customization is paying off for many organizations, since usage continues to grow by leaps and bounds.  But improvements in top line performance are only half the ROI equation – the other half lies in the bottom line costs.  The movement toward One-to-one Fulfillment, Single Card Activation, and Auto-Reloading is putting true end-to-end customization within reach of most organizations. 

We are all witnessing a glimpse into the future of Corporate Gift Card Incentives – and that future is customization.

1. "2008 Incentive Gift Card Roundtable", March 06, 2008; Manage Smarter. Obtained at www.managesmarter.com
2. Incentives for Your Employees or Clients, Newsletter-December 2007. Obtained at www.giftcards.com

The marketing and incentive landscape is riddled with a vast amount of products and offerings to motivate customers, suppliers and employees. Personalizing is a strategy to consider for forward looking companies who want to differentiate their programs. 

"To Personalize, or not to personalize?" Is not the only question…"How to personalize?"- that should be the question for any promotions manager or incentive program when it comes down to picking products. One of the largest misconceptions is that personalizing costs more. The second is that it is more difficult to execute. 

With today’s technology and offerings, companies such as Hbc make it economical, cost effective and simple to execute on the strategy of personalized communications. The real challenge is what happens after you personalize an offering – but, let’s save that for the end of this article.

So let’s address the key question. Why Personalize? Simply explained, people respond to what they relate to, as well as what is relevant to them individually.

By making an offering personalized you are doing several things. First you have their name on the offering/product or service – they know it is for them. This is where a lot of companies miss the boat. Not that they’re not effective, but a personalized T-shirt is still just a T-shirt. Have you ever received a gift that had your name on it, but you still didn’t like it? Or much worse, it wasn’t relevant to the situation for which you received it? As an example, think of receiving a personalized coffee mug from a Vintner at a wine convention. It just doesn’t make sense.

Context is everything. Personalizing goes way beyond just adding a name. There are also opportunities to add situational customization into your product. Take Hbc Gift Cards for example. You cannot only personalize the name on the card and add your company’s name and logo to transfer the good will; you should also customize it to specific situations like Employee Anniversaries, and so forth (see the image gallery). Together this combination makes for a powerful incentive.

So let’s go back to the forgotten side of personalizing. You’ve done everything right up to this point. You’ve personalized their name on the incentive product. Your company has added their corporate logo to ensure you have your branding ever present. You’ve even taken it to the level of customizing based on the situation for which you are giving the gift. All good - right?

Not if you want to take your program to the next level. The gift itself should make a unique connection with the recipient. The forgotten side of personalization is that you are unable to make a impression unless you are able to PERSONALIZE the ACTUAL GIFT ITSELF. This takes your program to a level that is way beyond any amount of boardroom planning and employee surveys could. Everyone individually has unique needs and interests, so not have them participate in the final step of the process by choosing an incentive gift that will motivate them on a personal level.

An example of that is, Hbc Custom Gift Cards (no surprise). Not only is the card personalized to the situation and to them as an individual.. but they are able to have the flexibility to purchase exactly what they want at that moment. One more benefit of this incentive approach is that they have the option to “Share with their family and friends” the experience and enjoyment of the reward. Not something you can do with a coffee cup or golf shirt, although you can add them to your incentive program to make it even stronger.

So next time you offer a corporate incentive, personalize it! And what better way then with a product such as gift cards.

Scott A. Martin
Founder
The Personalization Consortium

http://incentivemarketing.org/associations/2592/files/0506-13b%20rpt.pdf

http://www.usegiftcertificates.org/associations/3747/files/Gift%20White%20Paper9.22.05.pdf 20Card% 

SUMMARY
Canada Talk Now Members participate in a diverse range of online surveys and focus groups to share their opinions and preferences on a wide variety of topics. This information helps shape the decisions our business leaders are making.

BUSINESS CHALLENGE
The business was looking for a single, versatile reward which could be used to incent national Members, regardless of demographic in several ways:
1. Weekly Sweepstakes – each week every member of Canada Talk Now is entered into a sweepstake.
2. Enrollment Sweepstakes – A reward for registering with Canada Talk Now.
3. Research Participation Reward (Qualitative and Quantitative) – a means to reward Members for their time and participation in online surveys; focus groups and bulletin boards.

HOW Hbc GIFT CARDS HELPED
Canada Talk Now chose to use the Hbc Gift Card both for their Sweepstakes Programs and as a Reward for Members’ participation.
1. Achieved high participation rates ranging from 30-50%.
2. Succeeded in attracting Members from a wide range of socio-demographics to their program.

Hbc designed re-loadable, customized “Canada Talk Now” gift cards, which are distributed to Members.
1. Cards feature the Canada Talk Now logo and remind recipient that they were rewarded by Canada Talk Now for participation and or enrollment.
2. Hbc’s Incentive team designed an easy to use system for Canada Talk Now which allows them to add value to existing cards each time a Member receives a new reward.
3. This allows for quicker turn around times in issuing the reward, since the Member does not have to wait for a new card to be shipped.
4. This solution also saves costs since new custom cards only need to be printed when new members join the program.