In an economic downturn, rewards and incentives are more important than ever at Christmas, reports Andrew Johnson, director-general of The Va, the trade body for vouchers, gift cards and stored-value solutions
Preparations for Christmas sales are already well under way for several members of The Va as we gear up for the festive period. Indeed, generally around 60 per cent of sales to the corporate market happen in the final quarter of the year as organisations look to thank and reward employees, clients and valued customers, so this will be a very busy period for us all.
But what a year it has been! This time last year I certainly would not have expected that the phrases “credit crunch” and “recession” would be so rife, nor that leading world banks would be collapsing, airlines going out of business, thousands of people being made unemployed and the price of basic groceries and fuel going through the roof. With all this in mind, Christmas incentives and rewards may count as further expenses, but when delivered effectively, they will also prove to be an invaluable way to demonstrate value and appreciation on those whose business and hard work will be needed to help weather this economic storm.
Choosing the most effective corporate gift is, therefore, an extremely important consideration. I decided to ask several members of The Va to demonstrate why vouchers and gift cards offer one of the most cost-effective and valued solutions:
Martin Cooper, sales and marketing manager at Love2reward, commented: “Gift vouchers and cards can provide an effective option for Christmas bonus requirements. They allow companies to give their clients or staff the opportunity to buy something for themselves. They can accommodate any budget and some options, such as Love2reward’s Love2choose card, even lets recipients choose the voucher they want. This can be invaluable for an individual, especially this Christmas as the credit crunch continues to bite, since these vouchers can be used not only for recipients to purchase gifts for themselves, but can also enable them to purchase gifts for their friends and family.”
Paul O’Brien, managing director at Acorne, owners of the Virgin Vouchers and Leisure Vouchers brands, agrees on the importance of offering the recipient choice. “The multi-redemption nature of Leisure Vouchers and Virgin Vouchers means companies can give with confidence, knowing all employees will choose a gift they know they will enjoy,” he says.
“Experience vouchers are particularly popular at Christmas, providing an opportunity for giving recipients a chance to go out and celebrate in their own way, or relax and detox after the festivities.”
Peter Clayton, director of corporate sales at Buyagift, also cites experience vouchers as a particularly good way to ensure that the gift will have a lasting impact on the recipient. “They hold an appeal to an employer wanting to reward their staff with a gift that lives long in the memory, whereas simple monetary rewards are easily forgotten,” he explains.
“Also, the cost is hidden to the end user and the perceived value is much higher. This ensures the maximum impact to the end user with the minimum cost to the business. A popular Christmas incentive has been our range of Choice Vouchers as they cater for all budgets and tastes.”
Denise Porter, business development director at Treatme.net, notes the long-term impact of a successful Christmas incentive reward. “The Christmas sales will contribute to an integrated sales drive where new customers will be brought on board and where the investment in customer relationship management will pay dividends for the company in retaining a strong number of its existing seasonal customers,” she says.
House of Fraser’s business incentives manager Catherine Forrest provides some advice when offering vouchers and gift cards as Christmas incentives. “As vouchers have a monetary value, ensure that you pitch them at the right level,” she suggests. “A valued customer or a high-earning employee may not see the benefit of a £10 voucher, so you need to ensure that you can match the incentive with the requirements of the recipient.
“Also, it’s important not to pitch the incentive out of most participants’ leagues. Avoid excluding employees who may think only the top achievers will stand a chance of reaching the targets. And, finally, don’t use corporate incentive vouchers as a bribe. If Christmas incentives are chosen with care, and the right type of voucher given, an enormous amount of goodwill can be generated.”
Just like a dodgy knitted jumper, few people would now welcome a Christmas turkey as a corporate gift. Equally, no organisation wants to be responsible for offering shoddy gifts as the wrong corporate gift can leave a lasting bad impression. Considering the number of ways that gifts can go wrong and the expense this can cause, it is no wonder that vouchers and gift cards have become such a popular way to avoid becoming the bearer of unwanted gifts at Christmas.