Feature: Vouchers & gift cards: Mark the cards

When SK Chase recently became a new member of The Va, it prompted me to reflect upon a growing trend in association membership. SK Chase provides web-based hotel gift voucher services including a range of luxury experiences such as pampering and fine dining. I felt that this new membership really typifies the way in which The Va is continuing to expand into ever-wider business sectors and this can be seen as representative of the voucher and gift card industry’s diversification as a whole.

Gone are the days when vouchers and gift cards were solely offered by department stores and leading superstores. There is now an expansive network of companies and organisations offering products and services to the industry that cater for just about everything. Restaurants, travel, experiential gifts, nights out, DIY stores, book shops, music stores, online retailers and coffee shops are all further examples of companies that are now Va members offering a wider choice of vouchers and gift cards to the promotions industry.

In addition to traditional retail, our members also operate in the incentive and motivation sector, business improvement, financial services, travel and leisure, experiential and marketing industries. As this vast expansion is such a significant development in the market, I decided that it had to be included in the schedule for this year’s fifth annual Va Conference, sponsored by 3V Transaction Services, which is taking place on 22 April.

Rachelle Smith from Prepay Technologies will be moderating a panel including Simon Barnett from Pizza Express who will have a live discussion entitled: “Gift Cards – Not just for traditional retailers?” This will reveal just how diverse the market has become and delegates will benefit from key advice on how to capitalise on strategic alliances with the range of new entrants to the market that have come from niche non-retail backgrounds.

It is in the last few years that the popularity of vouchers and gift cards has really taken off at a rapid pace and this growth is predicted to continue as the range of applications increases. We know from the YouGov and Giftex Prepay research that was conducted at the end of last year that the general public has become increasingly predisposed to buying vouchers and gift cards as gifts. As a measure of how the market will grow over the next 12 months, for example, respondents to the Giftex Prepay survey were asked how many gift cards they were likely to buy this year compared to last. The results averaged out at one each – an increase of around 25 per cent.

I will be presenting an in-depth analysis of all of the results from these two surveys along with Tony Craddock, chief executive at Giftex Prepay. This should provide delegates with an invaluable insight into where the market stands today and what driving factors will help to keep the industry progressing forward.

Arguably, it is the increase in popularity of vouchers and gift cards among consumers that has acted as a catalyst to a significant jump in membership of the association over the last two years as more industry sectors have felt encouraged to consider the benefits of offering vouchers and gift cards. Now, with such a vast range of expertise, services and experience available for The Va to call upon among its members, we continue to grow as the authoritative voice of the industry and a promoter of best practice. The conference should demonstrate that gift cards and vouchers have an extensive application and I look forward to seeing you all there to find out more.