Hbc launches ECO Card for Business-to-Business Gift Card

Toronto, ON, May 1, 2008 – Hbc Gift Card, a leader in B2B Gift Card programs, proudly announces the newest offering to their family of cards: the ECO friendly gift card. In response to the growing demand for environmentally friendly products, Hbc Gift Card now offers the completely biodegradable, corn based plastic card with a 100% recycled paper carrier.  The ECO friendly gift card is available for standard card orders.

The ECO friendly gift card is just one of the initiatives that Hbc has taken in a continued effort to adopt and develop new “green” programs and policies.  Just last year, the Hbc head office was recognized as the first office tower in Canada to achieve the “zero waste” designation.  Furthermore, Hbc introduced a line of environmentally friendly, reusable shopping bags at their family of stores for use by consumers.
“Giving back to the environment now can be rewarding and sensible,” says Dawn Abankwah, manager of the program. “We are excited to introduce this ECO friendly gift card as an alternative at the forefront of environmentally responsible gift giving.”

As an introductory offer, purchase ECO friendly gift cards in the month of June, 2008 and receive a $50 gift card in your name. Limited quantities.  Just call 1-866-461-2323 or go online to www.hbc.com/b2b for more information. 

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

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.

In chemistry, a solution is defined as a homogeneous mixture composed of two or more substances. The same can be said in business and the right combination of substances or in this case resources, is often difficult to come by.

Naturally, every business will face challenges in both internal and external environments at some point, and how these challenges are handled are often the true test of endurance. In last month’s newsletter, Hbc conducted a survey to uncover the points of pain or challenges faced by readers in their organization. Sustaining growth and customer loyalty and retention, as well as employee motivation, were some of the greatest challenges faced with 50% of the respondents agreeing that this was their greatest point of pain. Others such as consistent execution of strategy and internal budgets were also noted.

It comes as no surprise that customer loyalty and retention ranks high on the list of challenges given that in today’s global, competitive marketplace, choice is abundant and customers have more control. Consequently, businesses must be intelligent about their markets and customers, and more aggressive than ever in their efforts to retain them. A personal touch almost always reflects positively among consumers and thus leads to greater customer retention. While a smaller business has the capabilities to offer a more hands on approach with their consumers, larger businesses are also finding ways of incorporating personalization into their business and marketing initiatives.(1) Direct marketing in particular certainly lends itself to this especially since the advent of variable printing, as do many loyalty programs which reward customers for their continued patronage. Giving consumers a personal experience will resonate strongly with them and garner repeat business.

While retaining customers is certainly an important aspect to any business, one of the other complex challenges faced is sustained growth from year to year. How do you keep a business growing and ensure that you are staying abreast of market forces? While the answer to this differs from one organization to the next, there are some principles that all businesses should abide by. Measuring results should be implemented as a means to benchmark future growth and align the most effective talent practices while at the same time reveal inefficiencies.(2) The old saying of what gets measured gets done certainly has it’s merits. Furthermore, focusing on core strengths and not trying to be all things to all people is key to maintaining sustained growth. If consumers understand your core business and feel convinced about the value added service you provide, positive word of mouth is sure to follow and can be your greatest marketing tool(3).

Source: Corporate Executive Board

As most managers can attest, employee retention, especially of the highest quality and most desirable employees, is one of the key challenges faced within an organization. While the basics of competitive salaries, holidays and benefits are common solutions to this challenge, there are many incremental steps an organization can take to overcome this challenge. Maintaining a strong organizational culture has many fringe benefits for an organization and its managers. Staff who respect the management team and are content with the work environment will inevitably be more productive and stay on with the organization for a longer period of time. Furthermore, investing in the employee through various training courses, has positive effects for both the employee and the company. Making employees feel as though they are a vital part of the organization and that their contributions are valued and noticed, will lead the employee to place a stronger identification with the business itself.(4) Incenting employees who have achieved projected sales targets or goals, provides that added bit of recognition while building further loyalty to the organization.

An organization has to be responsive to the challenges and threats that it faces from within the internal or external environment. Adaptation and the flexibility of adjusting to rapid changes in the marketplace will have a substantial impact on your organization. While a myriad of challenges will inevitably persist, following these simple suggestions above and ensuring the right mix of substances will be certain to avoid any chemical reaction’s that may arise!