Did you know that U.S. businesses spent $24 billion annually on B2B gift cards? The Incentive Research Foundation researched how much money is budgeted toward gift cards for incentive and recognition programs between two different sizes of businesses. These are classified as medium enterprises (revenue between $100 million and $1 billion) and large enterprises (revenue more than $1 billion).
So how is this money being spent?
According to the Incentive Research Foundation, more medium-sized businesses (69%) purchased gift cards for rewards and recognition compared to larger-sized businesses (61%). Employees and sales are the most popular audiences when it comes to gift card spend. Your brand’s gift card is being used first as an incentive to reward or motivate employees and sales then for customer and channel uses. Are you marketing your card as being a useful and motivating incentive?
Seek out opportunities within the budget
Now we know how the money is being spent, what are these companies’ budgets for gift cards? The graph below shows a good representation of how budget allocation is very different from the actual money being spent on gift cards.
For the medium-sized organizations, customer and channel has the biggest budgets. Are you targeting these types of audiences? This could be a huge opportunity as employee and sales audiences might not have the flexibility on their budget.