Incentive - September 2011

MERCHANDISE

IRF study shows employers are reinvesting in incentives
By Donna M. Airoldi

Merchandise Programs
Find Traction for 2012

Anew Incentive Research Founda- tion (IRF) survey report shows that most businesses kept their merchandise incentive programs heading into this year as they renewed their focus on building sales and customer retention, and they will carry this momentum heading into 2012.

Eighty-seven percent of 234 businesses that responded to the IRF for its “2011 Incentive Trends” report said

Ninety-two percent of
IRF’s survey respondents
expect to keep programs.

they maintained their merchandise incentive programs in 2011, and 92 percent of respondents said they expect to sustain their programs in 2012.

Further, 46 percent of respondents anticipated that next year their merchandise incentive budgets will increase at the same rate at which they went up this year—compared with 38 percent who said the same thing last year looking toward 2011.

Meanwhile, 23 per-
cent of respondents
said their mer-
chandise program
budgets are slightly
higher this year
compared with last
year. Ten percent
reported that they were
forced to cancel programs this
year, but only six percent anticipated
program cancellations in 2012.

IRF President Melissa Van Dyke says in addition to merchandise incentive budgets, the survey focused on the types of behaviors for which employers rewarded, as well as the range of merchandise used in programs. In the survey, merchandise was defined as material awards that were not related to travel, and included gift cards and apparel.

“One of the most significant findings is that apparel items ( 69 percent) and gift cards ( 66 percent) are emerging as highly used rewards in our post-recession economy,” says Van Dyke. ■

Maritz Launches Daily Deal App Motivation and loyalty firm’s Deal of the Day presents AwardHQ participants with discounted rewards

Maritz Loyalty & Motivation has added the Deal of the Day mobile application to its AwardHQ Collection. The app, which gives program participants access to discounted rewards, works on the iPhone, BlackBerry devices, and Android-based smartphones.

Participants also can get the Deal of the Day on a dedicated website that is accessed through AwardHQ. The website and app feature the same daily deals.

The intent behind Deal of the Day is to increase excitement and engagement in reward programs by keeping them top of mind with participants. The Deal of the Day gives participants access to discounts ranging from 10 to 50 percent on items from Apple, Canon, Cuisinart, Nike, Sony, Bose, and Michael Kors, among other brands. For example, a digital camera that required 37,000 points to redeem would take 25,900 points (pictured).

Deal of the Day works similarly to social discount programs such as Groupon in that each discount is available for a limited time to program members.

“Adding this new app to our existing
lineup of incentive, recognition, and reward
solutions gives our clients more ways to
involve participants wherever they are,”
says Julia Bailey, vice president of solution
development for Maritz Loyalty & Motiva-
tion, based in Fenton, MO. “Ultimately, this
new offering provides convenience and on-
demand access to services and benefits.”
Through integration with Facebook
and Twitter, the app also allows Maritz’s
program participants to spread the word
about the daily deals, creating viral
marketing campaigns. ■