When gift cards are referred to as “the reward of choice,” the description comes with solid research. A 2012 study by the Incentive Research Foundation (IRF) and the Incentive Gift Card Council (IGCC) found that U.S. businesses spent $22.7 billion on cards for employee incentive and customer loyalty programs. While more than 59% of businesses rely on non-cash rewards, a full 87% of those companies are using gift cards.
In a 2012 InteliSpend study, 60% of companies using gift cards favor them for ease of administration, 59% cite broad audience appeal, 52% for redemption and flexibility, and 48% appreciate a gift card’s perceived value over cash rewards. In fact, the 2012 IRF study found that more than 75% of gift card program owners believe they “are among the most effective of all rewards – especially in driving loyalty and engagement.”