Retail
Working With Gift Card Resellers
By Donna M. Airoldi
June 7, 2011
Gift card programs typically are easier to run than those for merchandise or travel incentives, but that doesn’t mean implementing one is as simple as just buying cards in bulk from resellers. In fact, these suppliers provide much added value with their expert program design and marketing services.
“Clients find out what we really help with is the poor person in the HR department who’s told to manage the program,” says Paul Hubert, GiftCertificates.com’s vice president of customer and merchant services. “We help them implement the program and create collateral marketing materials.”
Program Design and Management
Resellers can help clients determine the best type of program and reward mix for meeting business goals, whether it is points-based or spot-based and whether it uses plastic or digital cards or both, respectively.
“We’ll look at budget, the type of company they are, what their needs and goals are, and who they’re rewarding, and we’ll delve into demographics and recommend a program and what gift cards would be good for them,” says Joan Travelstead, senior vice president of program development at National Gift Card, in Crystal Lake, IL, which suppliers 195 retail cards, from luxury retailers to Walmart.
Knowing who you’re rewarding is key, too. “Often, people know what they want but not what would be the best solution for their target audience, says Travelstead. “Are you rewarding someone earning six figures? That program will be structured differently and with different cards than for a factory worker,” she says.
Resellers also help businesses run their programs better. To help its clients standardize the way managers hand out awards, Hallmark Business Connections developed an analysis “wizard.” Based on client input, the tool indicates whether an intended award is enough or if a different card works better. “That helps provide structure in companies where one manager might be giving $50 for a reward and another is giving $300 for the same effort,” says Heather Teskey, Hallmark Business Connections’ vice president of strategy and marketing.
One Fortune 50 financial services client saw its program numbers soar after it hired Hallmark Business Connections for a program that aimed to acquire new customers and strengthen relationships with current ones. “Before working with us, they tried using gift cards for a coffee retailer,” says Teskey. “It’s a great place, but if you don’t like coffee or if there isn’t a location close to you, it isn’t very exciting as an incentive.”
Hallmark Business Connections designed a program that incorporated a new theme and quarterly rewards. Employees who met their goals each received a Premiere Choice Award, tri-folded in a black “tuxedo jacket” envelope. The inside of the program-branded award showed the recipient’s name and a thank-you message for a great effort during the program. Each award was “signed” with the company’s logo, and each employee received an award number in the certificate that was used to select a gift card of personal choice.
The first quarter registered a 42.7 percent jump in recipients. It’s been nearly five years since the program started, and Teskey says the latest quarter saw recipient numbers grow 12 percent, with many individuals still reaching and surpassing their goals. And since the program is refreshed every three months, it’s always top of mind. The client now recognizes more than 22,000 employees with the program.
Marketing Matters
Creating a marketing campaign for a gift card program is as important as getting the proper design. Resellers can enhance programs with branding and creative services, and technology that allows for easy customization.
“We can design and create collateral materials for programs, do e-mail blasts, and create branded landing pages for redemption experiences,” says Hubert. “Our Super Certificate can be customized online in any way, with messaging, a logo, and flexible denominations. The recipient receives a code to access a catalog of up to 200 merchants. It gives them choice.”
A dedicated website for program managers and recipients makes it easy to market the program—not to mention keep track of analytics—but communication is the problem area for many companies, according to Teskey. “They’ll create a great program and launch it but not keep it top of mind with managers and employees,” she says. “Our marketing services team [shows] how to effectively communicate.”
Hallmark Business Connections also offers personalized hand-writers for messages and foreign language options. It even provides training services. “We’ll create the materials and come in to train the managers or their trainers on how to use the program and make the rewards as meaningful as possible,” says Teskey.
So with all these benefits, you’d think more incentive managers would use resellers. But out of the 62 percent of planners who use gift cards in their incentive programs, two-thirds say they purchase their cards from retailers, according to Incentive’s 2010 Gift Card IQ survey. Administrative costs, which can run into the thousands of dollars, could be a hindrance.
“But there are different ways resellers can help structure programs so they’re more cost-effective,” says Travelstead. “For people administering programs, time is valuable. Sometimes, [management] fees can be absorbed and countered because we’re saving people time.”
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