Five Reasons Not to Distribute a Gift Card

Gift cards are convenient and flexible, however they have 5 key limits for your brand. 

 

Reason #1: Gift cards are no personal; they lack a story.

A gift card can not recognize employees for their personal achievements or express  appreciation. Managers and those directly involved with performance can not articulate achievement to a group. A physical gift becomes a iconic image associated with gratitude and praise; creating motivation to achieve goals.  

Reason #2 Gift cards lack emotion

Even if a gift card presented to an employee or business partner is from their favorite store, the gift does not have the emotional connection of selecting the ideal gift or award. In fact, many recipients can not recall what they purchased with the card, which in turn forms no emotional connection.  

 

Reason #3 Gift cards provide no memory

Gift Cards are not memorable symbols of accomplishment or gratitude with the recipient or fellow co workers. The reward is easily forgotten. In fact, many recipients use the card for a purchase that is not intended for them personally.  

 

Reason #4 Gift cards are not always redeemed
Lost cards are not redeemed. Cards that expire are not redeemed. Cards that require too many hurdles to activate are not redeemed. Cards that carry a balance deemed too small after an initial purchase to motivate user decrease the value of the card. Some recipients "re-gift". Some recipients sell or trade gift cards.

 

Reason #5 Gift Cards Provide Low return on your investment

Recognizing an employee for good work should always increase employee performance and customer satisfaction; in turn making the company more profitable. Giving a gift to a key client or referral partner should keep you top of mind because you've touched their daily routine in a personal, emotional, memorable and lasting way.  

 

Looking for additional ways to add value in 2016? Check out our earlier posts this month regarding growth strategies for an abundant 2016.