Feature: Vouchers and cards: Knowledge is power

Now that the festivities are over and, for many voucher companies, the busiest trading period of the year has come to a close, we are collating sales data in order to analyse the impact of Christmas 2007 on the voucher, gift card and stored-value solutions market.

All signs point towards the year being capped off with a very successful fourth quarter with vouchers and gift cards proving to be a favoured Christmas gift idea for many people across the UK. Offering recipients the luxury of being able to select their own gift remains a real winner.

To cast our minds back to the beginning of 2007, forecasts predicted a busy year ahead with many more gift cards due to enter the market and those members already utilising gift cards expected to capitalise on new opportunities.

This certainly rang true in the consumer retail sector with gift cards gaining an increasingly visible presence in many major stores. The enthusiasm for paper vouchers in the corporate market, however, did not wane in 2007 as organisations regarded them as a more effective mechanic when delivering incentive and motivation programmes as well as reward and recognition schemes.

Moving into the new year, I am sure we will be seeing much more rapid growth in the market as a whole. One place where anyone with an interest in vouchers and gift cards can find out about the recent developments affecting this expansive industry is the fifth annual Va Conference 2008, which will be taking place on Tuesday 22 April at the London Marriott Hotel, Grosvenor Square.

Members and the media often look to the Va as an invaluable source of definitive information and an authoritative voice on the current state of the market. Providing reliable and detailed information is extremely important as this offers our members an unrivalled insight into exactly where the market is heading so that future strategies can be planned accordingly. The Va Conference is one method of communicating such information, but our work as an association spans far wider.

In late 2007, the Va commissioned two sets of major research to provide an insight into consumers’ attitudes towards gift cards and vouchers in order to give us a firm foundation on which to build our 2008 strategy.

Firstly, a YouGov research commissioned by the Va in the run-up to Christmas provided some very interesting results. We found that four out of five people surveyed (81 per cent) have previously given a gift voucher as a present, while 45 per cent have given a gift card. The reason for this popularity? “Freedom of choice” was the overriding answer, but this is just a taste of what this fascinating research divulged.

The second set of research that we commissioned was a survey by Giftex Prepay which examined further aspects that contribute towards how consumers’ view gift cards. Details such as packaging, the types of occasion that are suitable for giving gift cards and the overall experience of both the givers and receivers were examined together with issues that reveal the impact for retailers such as the effect on patronage, incremental spend and repeat purchasing.

Both surveys represent a major investment for the Va and we will be bringing detailed analysis of the results in due course as part of our commitment to providing members with the direction and assistance that can help to leverage the success of 2007 into the new year.

More details on the Va conference from Sarah Kidd on 01344 751613 or sarah@the-va.co.uk.