SPECIAL REPORT - PROMOTIONS & INCENTIVES: Not just a token gesture

The Tesco Clubcard is one of the most successful retail relationship marketing programs in the UK. Every quarter, the company sends out L50 million worth of vouchers to its Clubcard holders. Redemption rates regularly exceed 90% and create massive sales peaks. Elsewhere, gift vouchers have steadily grown in popularity over the past 30 years. According to the Voucher Association, approximately L1.2 billion a year is spent on gift vouchers in the UK - with the corporate sector spending about 60% of the total on reward and staff loyalty schemes. Vouchers are essentially pieces of paper that work in a roughly similar way to money. But in terms of reward and motivation, people's attitudes towards money and vouchers couldn't be more different. Numerous workplace studies have shown that when it comes to motivating staff, money tends to be spent on day-to-day living, so it often fails to achieve the desired morale-boosting effect. Vouchers, on the other hand, are more memorable.