Gift Certificates: The Perfect Gift? (Paper or Plastic? The allure of choice leads some toward gift certificates)

When people receive unwanted gifts, often trepidation seeps out in their in the half-hearted response,“Oh, it’s just what I always wanted.” It’s an uncomfortable moment for the gift-giver and the receiver. Who among us hasn’t been on both sides of that coin?

We’ve all received premiums as consumers or employees, and thought, “Who in their right mind chose this for me?” Many of us have also been the decision maker and made purchase choices that unwittingly left the recipients scratching their heads, as well. It stings when your gift is rebuffed, but you also miss the chance to create a positive impression, as your gift likely ends up in the back of a drawer or in the trash.

Enter the gift certificate and gift card. Most of us exchange this new currency frequently and freely, whether in honor of a special milestone, an accomplishment or a job well done. For many of us in the promotional products and incentive industries, this growing trend is changing the way we do business. These gift options can be anything from a quick, easy way to say “thank you,” to the ultimate reward in a company-wide incentive program.

Rest assured, people who are given the option to choose a nice gift will always recall who appreciated them enough to give it — regardless of whether it’s logoed. Below are a few of the “why” and “how” aspects of making gift options a part of your program.

Choice – The Best Gift

When considering any gift or incentive program, naturally you want to provide what most recipients will want, and resoundingly, what recipients want is choice. Instead of rewarding that top performer with a preselected watch, why not give him or her a gift certificate to a company that offers not only watches but also various other items that may better suit the recipient?

On the distributor level, isn’t it more convenient to offer your client a gift certificate option from one company, instead of pouring through catalogs to choose an item that may or may not satisfy the client’s needs as a whole? Leftover products may also be an issue worth considering: If everyone likes the company-branded, cell-phone holder better than the sunglass visor clip, you may end up with a gross of visor clips sitting in your warehouse and collecting dust. By providing gift options, recipients get to choose item A, B or C. There is no waste, and everyone gets the item they really wanted.

A Growing Trend

On the supplier side, it seems many larger companies are now offering gift certificate and gift card options. This not only makes it easier for the distributor to sell the supplier company to the client, but it also enhances the supplier’s chances of exposing its client base to a wider array of products within a certain price range. Equally important, gift certificates convey an important and thoughtful message to the recipient: We want you to choose something really special for yourself — as opposed to a mass-branded gift that everyone receives simultaneously. As an added benefit, there is usually a healthy margin built into merchandise certificates above that of plain-denomination gift cards.

Keep In Mind

There are a few things to consider when creating a gift-certificate program. First, make sure the supplier with which you work has enough inventory to support a run on any of the products in your lineup. Depending on your client, there may be a preference toward one product, and you don’t want it to be out of stock when the phone starts ringing or the e-mails start rolling in. Next, choose a well-thought-out array of products that fall into different price ranges and styles. This makes it easier for clients to offer a variety of options to differing levels of recipients.

Remember, sometimes the best advertising is free, and if it comes from the mouths of people who appreciate your thoughtfulness and creativity — not to mention your products — what’s better than that?

Jeff Thompson is a 14-year veteran of the promotional products industry, having spent time on both the supplier and distributor sides of the business. He is currently the vice president of sales for the Corporate Markets Division of Victorinox Swiss Army Inc. in Monroe, Conn. Thompson can be reached at 203.929.6391 or jeff.thompson@swissarmy.com.

Case Study

In 2007, a well-known entertainment company was looking for a unique program to thank its loyal customers. Research on the customer base determined that this affluent group had an affinity for high-end products with high perceived (and actual) value. Armed with this information on its brand-conscious customer base, and being known for delivering tremendous ROI on every promotion it undertakes, the organization chose to create a custom gift-certificate program with Victorinox Swiss Army Inc. Three value ranges were determined, with key products in each category including cutlery, timepieces and more. Redemption for the program just ended in June 2008. Overall, the program was a hit, not only achieving its goal of rewarding loyal customers with quality gifts but also bringing them back through the door in the redemption phase, in-turn continuing to strengthen their customer relationships.