In Gift Cards
Why are Gift Cards Better than Cash?
Wondering why gift cards are better than cash? Keep reading for the answer.
Cash is popularly used as a means of reward in the workplace. It is, therefore, no surprise that gift cards are becoming popular for the same purpose. Employee recognition gift card programs are becoming popular. Since gift cards can cater to the interests and wants of the recipients, they are usually preferred to cash.
This same concept applies to the use of gift cards for employee incentives. This is the reason why many companies are now using employee gift card programs instead of cash incentives.
In this article, I will talk about why gift cards are better than cash as incentives.
Gift cards are more valuable than cash
We work for cash to pay our bills and also save. Thus, when employees get cash incentives, they see bills they need to pay and the amount they can save. In the case of gift cards, employees understand that they are gifts. As a result, a gift card would last longer than just paying bills. The gift card could be for electrical home appliances or fashion products. Each day the employees use what they got with the gift cards, they will be reminded of how their employers value them.
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Gift cards are more cost-effective for the company
Gift card incentives help to save money. Just as I explained earlier, cash incentives are used for settling bills and savings but gift cards are meant for gifts. An employee will appreciate a lunch gift card voucher since he or she will be able to get the lunch they always wanted to eat.
However, if they were given cash, it would be too small and it may not be appreciated.
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Gift cards retain their value when the economy is down
Gift cards retain their value during uncertain economic seasons (like a recession). When budgets are reduced and money in circulation is low, gift cards can help customers, employees, and channel partners scale through the challenging economic situation. Also, gift cards are less prone to loss, fraud, or theft than cash.
They generate useful customer data
It is possible to track gift card redemptions so that companies can have a better understanding of their market. Companies can use this data to develop strategic marketing and communications plans.
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Gift cards can improve work performance
According to results obtained from studies, cash does not improve the performance of employees. A survey revealed that 17% of American employees studied stated they had received a year-end cash bonus. 32% of these people revealed that the cash bonus did not enhance their work performance. So, we can conclude that cash does not motivate people the same way gift cards do.
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In a nutshell, gift cards are more memorable. An increasing number of companies are seeing more value in using gift cards as incentives instead of cash.
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