A survey of 1,100 U.S. businesspeople and companies found that 45% of companies use open-loop or closed-loop gift cards as rewards, the Incentive Gift Card Council and Incentive Marketing Association reported.
• The study found that 45% of companies are using gift cards as a reward, with the largest companies (more than $100 million annual revenue) using them at a rate of 56%.
• Of companies using gift cards, most firms (67%) are using gift cards as employee incentives, followed by sales incentives (38%), customer rewards (30%) and 8% allocated to channel incentives.
While using the term “gift card” has some problems when it comes to incentives, the message is clear: card issuers and program managers have opportunities to expand their businesses in the incentives space. While the business is a competitive one, both in terms of providers and other types of rewards, prepaid cards have staked a claim in the incentives world.
Overview by Ben Jackson, Director, Prepaid Advisory Services
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