The Heart and Stroke Lottery

The Heart and Stroke Lottery has included Hbc Gift Cards in their lottery prize pool as part of their overall Grand Prize and Early Bird Packages so as to enhance the package and to provide the winner(s) with easy means to buy “cool stuff for home”.  In addition they have used them as an incentive in their “Enter to Win” contests – this has been an effective tool in getting contestants to forward the contest to friends and also grow their email base.

Company’s Coming-Search for the Ultimate Host Contest

The Hbc Gift Card is currently featured as one of the great prizes up for grabs with the Company’s Coming Get Your Chef On-Search for the Ultimate Host Contest. Company’s Coming was looking for a unique and relevant prize that could be offered as part of the weekly prizes awarded to contest entrants. The Hbc Gift Card allowed them to customize the card to match the look of the contest and personalize it with the winner’s name directly on the card. Winners can use the gift card to purchase items that would make any chefs kitchen complete. For your chance to enter the Company’s Coming-Search for the Ultimate Host Contest visit www.ultimatehost.ca.

These days it seems that there is a loyalty program for just about everything. Your credit card company offers it. So does your gas station, grocery store, even your local coffee shop and with good reason. Loyalty and reward programs offer a winning combination for both the member and the program that offers it. The member is rewarded for their continued patronage and the company/program receives continued revenue from the repeat customer. But how often have members found themselves wondering just how many points they’ve accumulated and what they can redeem for?

The loyalty industry has taken notice and is working to make redemption easier as well as offer items that are of value to the consumer. Gift cards in particular have made an enormous impact on this industry by providing loyalty and reward programs with an item that offers a greater amount of choice and variety for the consumer. Their popularity has surpassed any other reward, taking in 57% of all credit card reward point redemptions(1).  Long gone are the days when you received a catalogue with redemption items that didn’t exactly fit what you were looking for. A gift card on the other hand, allows you to pick and choose the items that you waht to purchase. After all, the privilege of redeeming for rewards is the reason customers join a loyalty program in the first place.

Many are seeing the growth of gift card popularity as a way to re-engage customers who are enrolled in a loyalty program but never redeem their points. In a study conducted by Maritz, it was found that nearly half of all consumers have never redeemed their loyalty points even though 36% of the cardholders have been in reward programs for over 5 years (2).  Situations such as this have forced marketers to become more innovative and creative in their reward offerings with more of a focus on flexibility and easier redemption. Statistics show that the more customers redeem, the more valuable they become to the company sponsoring the loyalty program and that multiple redeemers outspend non-redeemers on an average of 3:1 (3).   While reward miles used to be the de facto currency that members redeemed for free air travel once they had accumulated a certain threshold, nowadays gift cards offer the consumer the choice to shop at retailers for merchandise of their own choice.

Gift cards can also be used as a key incentive to encourage members to sign up for a loyalty or reward program (4).  In a recent study conducted by Hbc, it was found that an overwhelming 100% of participants prefer a loaded gift card over anything else when receiving a gift with purchase. This outweighed the desire for other products or even discounts. However, the battle doesn’t end there. Credit card loyalty programs are always looking to increase commitment from the card holder to continue spending while working toward a reward. Visa found that committed cardholders put as much as 75% of their spend on a chosen card (2).

A successful loyalty program should offer its members rewards that are meaningful and attainable. As gift cards climb in popularity, they continue to evolve to add value to the loyalty member who opts to redeem for them. Gift cards provide that attainable reward that can be reached without having to accumulate points for a long period of time and they carry a high perceived value to the end consumer. Choice, flexibility and the ability to redeem for rewards faster are just some of the benefits that make gift cards a winning addition to any loyalty program.

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

What was the last corporate gift that you received? Perhaps you attended a golf tournament and received a T-shirt with the host’s name and logo on it. Maybe you were invited to a conference, and received a memo pad advertising the virtues of someone’s brand. Would that message have resonated, or made a greater impact had it been accompanied by an Hbc gift card, with your name and their logo on it?

Each year, marketers invest millions of precious dollars in promotional gifts, direct advertising and other targeted tactics hoping to:

1. Build customer awareness and loyalty
2. Acquire and retain customers
3. Lift sales and drive traffic

Integrated, Frequency and Experiential marketing initiatives are being deployed more and more in an effort to achieve results.[i] What this means is that businesses are reaching consumers and corporate clients alike by rewarding ongoing desirable purchasing behavior, and delivering regular, consistent messages about their brand through multiple, innovative vehicles. “Communication that consistently reinforces a company’s message at every contact and creates a strong brand identity is the only way to build the relationships that grow a business“.[ii]

It is our theory that the marriage of these tactics is the epitome of 21st century marketing. When a brand achieves favorable awareness within its market and advertises to the right customers in the right way, success is imminent. “Good general advertising can shape a brand’s personality, but only direct marketing can build ongoing, durable relationships with consumers – and that’s where the profit is“.[iii]

The Hbc Gift Card featuring your logo and message is the ideal product to plug into this multi-level, tiered approach (which seems to be replacing traditional ‘above the line’ advertising such as TV, radio and print).[iv] Our product compliments Integrated, Frequency and Experiential marketing initiatives by:

1. Allowing you to align your brand with one of this country’s oldest retailers (Hbc appeals to Canadians from coast to coast)
2. Enabling you to reinforce the steady message you are trying to deliver about your products and/or services.
3. It’s convenient size, packaging and customizability render it a perfect giveaway for any experiential encounter.
4. Offering your customers the gift of choice – allowing them to select items which they will remember and make use of, from over 1 million products and services available at the Hbc family of stores (the Bay, Zellers, Home Outfitters and Designer Depot).
5. Serving as a virtual billboard for your brand, in your customers’ wallets!

[i]   White, Martha C.  Demand for Direct, Targeted Tactics

Grows  2006,  Motivational Strategies, Volume 10 Issue 3, p32

[ii]  Zogby, Lelia Modern Communicator, Share your Craft! Dec

­ Jan 2000-2001, Communication World  18:1, p29

[iii]  Wunderman, Lester  New Frontiers in Direct Marketing

Dec 1993,  Direct Marketing 56:8, p29

[iv]  White, Martha C.  Demand for Direct, Targeted Tactics

Grows  2006,  Motivational Strategies, Volume 10 Issue 3, p32

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.