The use of prepaid gift cards, such as eftpos gift cards, as staff rewards continues to grow. Over 3 years time, it has increased by 42%! Typically being used for on-the-spot rewards, staff Christmas rewards, performance goals, and recognition awards, organisations prefer gift cards because they are easier to administer than most other rewards and are much more flexible. But with eftpos gifts cards, retail gift cards, and even gifts cards that can be used in multiple chains of stores, which is the best option for your staff and your business? If you’re trying to keep all of your employees happy, the answer might seem obvious – eftpos gift cards are the way to go. They can be used anywhere in Australia, ensuring that your customers will get exactly what they want. But are eftpos gift cards really the preferred choice for staff rewards?
Employees Want Prepaid Gift Cards for Staff Rewards
So why do recipients even want gift cards in the first place when they can just have cash? The answer is simple. They want to spend their reward on something fun – and gift cards give them the excuse to do so. Studies have even shown that card recipients are more likely to add the value of a gift card to their monthly budget than they would if given the equivalent value in cash. Thus, it’s not surprising that research has shown prepaid cards are among the most popular gifts for recipients, whether from a friend, family member or employer – even more popular than cash! A survey completed by the Incentive Research Foundation in 2012 revealed that 44% of respondents said that prepaid cards are their favourite type of gift or reward. And – when compared to cash, seven times as many respondents chose the prepaid card! But with so many card options out there, which is the right one to choose this Christmas?
Employees Prefer Open Prepaid Gift Cards for Staff Rewards
While some might argue that store gift cards are a more thoughtful and personal gift, research has proven that recipients have a different view. Scott Jeffrey at Monmouth University completed a study in 2011 comparing open prepaid cards, (such as eftpos gift cards) to closed prepaid cards (such as a retail store gift card). Results showed that while closed cards remain popular among staff rewards & incentive planners, card recipients prefer receiving an open prepaid card over a closed or restricted card. When asked what type of reward they would prefer to receive, 75% of respondents would prefer an open card versus 8.5% preferring the closed or restricted store gift card.
How do the features compare?
While recipient preference is important, you also need to choose a gift card option that suits your business. Depending on your corporate needs, some features may be more important to you than others. While both cards types are fairly easy to administer, when it comes to recipient benefits, branding, lead times & support, there are differences.
|Features||Eftpos Gift Cards||Store Cards|
|Recipient Benefits||No location limitations – recipients can use wherever they want||Limited to a specific store or chain of stores|
|Branding Benefits||Card customisation available to promote your brand||No Customisation available|
|Lead Time||Less than 5 days, depending on customisation & card provider||None|
|Support||Cardholder & client support provided||Cardholder support provided, client support may be provided depending on the provider|
|Extras||12 month activation period with Rewards Come True eftpos cards||No set up fees|
Through research and studies, open prepaid gift cards have come out the victor when it comes to recipient preference, however, it is also important to consider the limitations of your business and the personalities of your employees. As beneficial as it is to do your research when choosing your staff rewards this Christmas, you know your company and staff better than anyone. Keep your recipients in mind first when making the final decision. After all, it is a gift meant for them.