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MeetingsNet IRF Merchandise and Gift Card study 2012
- The majority of merchandise/gift card budgets 2012 remained “about the same” from 2011. The average change of the 2012 budget has increased an estimated 2.2% over the 2011 budget.
- Half of the respondents cited pressure from top executives in their company as a reason the 2012 merchandise/gift card budget was reduced. Approximately 2 out of 5 respondents cited market pressure as another reason in a reduction of their budget.
- Nearly 3 out of 4 respondents purchase merchandise/gift cards in support of their sales incentive program. In addition, nearly half of respondents are looking to provide incentives to the non‐sales staff.
- Most companies utilize a mixture of products to fulfill their awards programs. The majority of respondents purchased gift cards (83%), awards/plaques/trophies (65%), electronics (62%), apparel/wearables (59%) and golf products (53%).
- Nearly 70% of respondents who use gift cards as an incentive use open cards. The most popular goods/services that gift cards were rewarded for are restaurants/entertainment (65%) and retail/online shopping (54%).
- Gift cards have been used by a major of respondents as a replacement for incentives of cash (56%) and merchandise (65%). The leading reasons for replacing cash incentives with gift cards are the ease of use (54%) and flexibility (51%).
- One‐fourth of respondents have replaced the awarding of gift cards as an incentive with merchandise. 30% of respondents have used a virtual gift card as an awarded incentive.
- Two of the three main factors on deciding on corporate gifts for employees is dependent on the recipient . The main factor is perceived value (68%), followed by the end‐user (60%) and price (58%).
- Nearly half of respondents look for gifts that are green or locally made. 84% of respondents purchase branded/logoed items.
- Only one‐fourth of respondents use gamification in their online incentive programs to encourage employees to have a higher level of participation.
- Respondents spent an estimated average of $197 per person for each merchandise award. The average gift card is estimated to cost $157 per person.
- The majority of merchandise/gift card budgets 2013 are expected to remain “about the same” from 2012. The average change of the 2013 budget is expected to increase an estimated 3.4% over the 2012 budget.
- Half of the respondents cited pressure from top executives in their company as a reason the 2013 merchandise/gift card budget was reduced.
- The respondents are looking for marginal improvement to the business climate in 2013 compared to 2012.