SELECTED MERCHANDISE ITEM

All participants receive predetermined item for performance.

LOW

• Have to accurately forecast winners
• Upfront order to get good price and timely delivery
• Inventory responsibility
• May have to administer awards or handle returns of damaged merchandise

LOW perceived

• Chances are not all winners will want or need.

LOW - MEDIUM trophy

• Has trophy significance, however, everyone got the same thing

LOW

• No choice.

MEDIUM

Low because they may have to wait.

High because everything is taken care of.

MERCHANDISE CATALOGUE

Participants receive catalogue of merchandise items

• Paper-based checks or Bank Account for points

LOW-MEDIUM

• Breakage depending on how awards are paid for. (Redemption vs. Issuance)
• Administration of paper or bank account to keep track of participant points.
• If participant experiences delays or discontinued items, may complain directly to sponsoring company

MEDIUM perceived

• May compare items to discounted retail offers
• Pricing may not reflect dollar for dollar.

HIGH trophy

• Concrete reminder of achievements and sponsoring company.

MEDIUM

• Not all participants like to shop from a catalogue. Many prefer to see an item to make a choice.
• Doesn't account for those who prefer travel

MEDIUM

• Have to wait for awards to arrive
• Item in catalogue may not be as appealing or discontinued
• Sizing issues can cause delays with returns
• Paper-based? - if lost, can be replaced.

GROUP TRAVEL

Participants, typically top performers earn a trip selected by management

• Conventions
• Seminars
• Incentive Trips

LOW

• Sponsor gets to enjoy trip, but may be responsible for all operation details.
• Typically aimed at top performers - costs more for less winners
• Time-consuming to make travel arrangements prior to promotion and for trip operation
• Participants out of the office
• Uncontrolled variables - weather
• Pay deposits upfront, possible cancellation fees or booking problems if program results fall short or exceed expectations

perceived

• Depends on location and if "first-class" accommoda-tions, venues & transportation are provided.
• If participant doesn't want the trip, want to travel or has been to the destination many times before, the perceived value may be diminished.

HIGH trophy

• Participants will have the experience in their memory for a lifetime.
• "Show off" photos to friends, family and coworkers
• Recognition in front of peers adds to experience

LOW

• Predetermined destination. Not all participants will like the destination. And some prefer not travel at all.

LOW

• May not be a convenient time to travel due to personal or business reasons

RETAIL GIFT CERTIFICATE

Used like cash at one specific retailer

• Dollar for dollar.
• May require specific denominations
• Typically no customization or sponsoring company identification

MEDIUM

• Easy to administer - one-time issuance.
• Minimum administration cost
• May purchase certificates that are never used.
• May need to change award payouts to meet predetermined denominations
• No breakage

LOW - MEDIUM

• No hidden pricing.
• Participants can take advantage of sale prices.
• Perceived and trophy value may decrease with only one retailer. If participant doesn't like retailer, may give certificate to someone else and have nothing to show or brag about.

MEDIUM

• Choices provided by one retailer only.
• Appeal depends on individual tastes and what retailer offers.

LOW-MEDIUM

• Participant decides when and how to use.
• May have expiration dates.
• Specific retailer may not be convenient for all participants.
• If certificate is lost, may not be replaceable.

UNIVERSAL GIFT CERTIFICATE

Used like cash.

• Universally accepted.
• Paper-based
• Dollar for dollar
• Usually require specific denominations
• Typically customization or sponsoring company identification.

MEDIUM

• Easy to administer - one-time issuance
• May purchase certificates that are never used.
• May need to change award payouts to meet predetermined denominations,
• No breakage

HIGH perceived

• Perceived value increases with choice.
• No hidden pricing.
• Participants can take advantage of sale prices.

LOW trophy

• Because it's like cash, participant may use on basic needs like groceries or gas.

HIGH

• Appeals to a wide range of participants.

MEDIUM-HIGH

• Participant decides when and how to use.
• Typically no expiration dates.
• Can be used almost anywhere.

ELECTRONIC GIFT CARD

Pre-loaded points on a card to be used like a debit card at one specific retailer or travel supplier.

• Dollar for dollar.
• May require specific denominations
• Typically no customization or sponsoring company identification

MEDIUM

• Easy to administer - one-time issuance.
• Minimum administration cost
• May purchase certificates that are never used.
• May need to change award payouts to meet predetermined denominations
• No breakage

LOW - MEDIUM

• No hidden pricing.
• Participants can take advantage of sale prices.
• Perceived and trophy value may decrease with only one retailer. If participant doesn't like retailer, may give certificate to someone else and have nothing to show or brag about.

MEDIUM

• Choices provided by one retailer only.
• Appeal depends on individual tastes and what retailer offers.

LOW-MEDIUM

• Participant decides when and how to use.
• Specific retailer may not be convenient for all participants
• If card is lost, may not be replaceable

AWARD CARD One-time use Non-reloadable.

Pre-loaded points on a card. Works like a debit card at open-ended or selected group of retailers and travel suppliers.

• Points are dollar for dollar.
• Options may include personalization of card.

MEDIUM-HIGH

• Easy to Manage.
• Minimum administration cost.
• Typically includes printed materials to explain usage and promote awards at no additional cost.
• No combining programs or reloading points

HIGH

• Value increases with choice.
• No hidden pricing.
• Participants can take advantage of sale prices at participating establishments.
• Choice increases perceived and trophy value.
• If sponsoring company name embossed on card offers continued reminder of program.

HIGH

• Appeals to a wide range of participants and lifestyle preferences.

MEDIUM-HIGH

• Participant decides when and how to use.
• Used at a variety of locations and options
• Easy for participants to track points or get assistance.
• If card is lost, may not be replaceable

AWARD CARD Reloadable

Works like a debit card at open-ended or selected group of retailers and travel suppliers.

• Points are dollar for dollar.
• Points can be loaded on an ongoing basis.
• Points from multiple programs combined on one card.
• Options may include customization of card.

HIGH

• Easy to manage.
• Minimum administration cost.
• Flexibility as to the frequency of issuance and combining of programs.
• Typically includes printed materials to explain usage and promote awards at no additional cost.

HIGH

• Value increases with choice.
• No hidden pricing.
• Participants can take advantage of sale prices at participating establishments.
• Choice increases perceived and trophy value.
• Sponsoring company name embossed on card offers continued reminder of program.

HIGH

• Appeals to a wide range of participants and lifestyle preferences.

HIGH

• Participant decides when and how to use.
• Used at a variety of locations and options.
• If card is lost, it is replaceable.
• Easy for participants to track points or get assistance.