SVM Global was pleased to attend a recent event hosted by IMA Europe based in Milan, focused not only on incentives and motivation, but also on Gift cards. As experts in the gift card market, we are always keen to hear of new studies that show how different countries are using gift cards to enhance their business.
One presentation ‘Consumers’ perception of digital rewards in loyalty programs: insights from a multi-country research’ Presented by Daniele Tonini of Target Research showed how loyalty programmes across Europe are affected by the rewards they choose. We’ve wrapped up the headline news, so if it’s time for you to set up a loyalty and reward programme, you can choose the best incentives.
The survey results came from an online panel of 4032 contacts representing the views of 5 european Countries: Italy, Switzerland, Germany, France and the UK. The data was collected in April 2016.
When asked to compare two different types of rewards, the results showed that particularly for the UK, gift cards reign supreme.
UK respondents showed a ‘strong preference’ to gift cards compared to experiences, and all the other countries polled expressed a ‘slight preference’ towards gift cards, with no selection made in favour of experiences.
When comparing physical rewards and gift cards, there was a ‘slight preference’ towards gift cards in both the UK and France, whereas in Italy this slight preference was focused towards physical rewards.
When it came to discounts or physical rewards, or discounts and experiences – a clean sweep ensued. No countries showed a preference so physical rewards or experiences when compared to discounts.
The preference between physical and digital gift cards was also incredibly interesting. Every country showed a preference for a physical gift card, despite the growing mobile methods of purchase and redemption. This is particularly high in Switzerland, with a 67% preference.
The survey wanted to look at loyalty schemes currently in place across Europe. In the UK, 52% of people reported that they have received a gift card as part of a promotion with a supermarket, a figure that is much higher than any other EU country surveyed, at 44% in France, 37% in Germany, 41% in Switzerland and 27% in Italy.
In fact, in the UK gift cards have been reported as used by Petrol Stations by 33% or respondents, and Credit Card companies by 38%. Comparably, Italy’s use in the same places are 16% for Petrol Station promotions and 29% for Credit companies. The summary? Gift cards are clearly working for major loyalty schemes in the UK.
When respondents were asked to choose between the choice of a 100€ Gift Card selected through an app or the internet, or an Experience organised through a call Cente at a value of 105€, 43% of people would choose the gift card, despite the fact it had less value and needed ‘manual’ redemption! Just 17% of people selected the experience. This took into accounts views from all EU representatives.
The study showed that for every country other than the UK, it is the method of selecting the reward which is considered the most important feature for a loyalty program benefit.
However, when it comes to the UK in particular, getting the incentive right is key! 49% of respondents said that the right type of reward was their main concern – a stand out statistic!
If you’re interested in riding the trend – speak to SVM Global! As the global leader in gift cards, we can help you choose the method of supplying gift cards that suits you. Email email@example.com today and we will respond immediately.
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