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Promoting, protecting, and researching the optimal use of incentives, corporate gifts, rewards, recognition, awards, incentive travel, promotional products and related promotions in business.
Current Legal/Legislative Updates and Industry Initiatives
U.S. Businesses Spend $176 Billion on Incentives, Recognition, Rewards, Incentive Travel and Corporate Gifting New Incentive Market Study Shows
The 2022 Incentive Marketplace Estimate Research Study released by the Incentive Federation (IFI) reveals that 84% of U.S. businesses spend $176 billion annually on award points, gift cards, trips and travel, merchandise, and experiential rewards to reward sales staff, employees, channel partners and customers.
IFI’s study shows the non-cash incentives market grew a remarkable 49% since the last market estimate study in 2016. In addition, 92% of companies with revenues of $5 million or more use at least one form of non-cash incentive program. Gift cards, including digital gift cards, are most prevalently used in all programs, with Award Points the second most used in three of four program types. Trips and travel are used as rewards in sales incentive programs and channel/distributor/partner programs more often than in the other targeted types. Branded Merchandise and logoed merchandise are the most prevalent uses for client gifts, which are used in 75% of companies with more than $1 million in revenues.
The study, conducted in May/June 2022, sought responses from companies that use incentive tools and services such as award points, gift cards, travel and trips, merchandise (both branded and logoed) and experiential awards (which were included for the first time in this latest study).
The Incentive Federation conducted the survey in partnership with Rickard Garlick & Associates Consulting and Market Research Services. Data was drawn from a national sample of 1,000 business executives responsible for non-cash incentive programs in companies with at least $1 million in revenues.
The study also revealed:
- Companies with revenues from $1 million – $10 million represented 91% of businesses in the overall sample.
- Non-cash sales incentives and employee rewards are the most prevalent forms of non-cash incentives, with 55% of businesses using sales programs and 70% of companies having employee programs.
- Non-cash customer loyalty programs are used in 55% of firms, while 48% of companies use non-cash channel/distributor/partner programs.
The full study white paper, with extensive explanations of the methodology and approaches used as well as detailed comparisons of the types of incentives used for the various audiences are now available to industry companies. The reports will also include easy to understand and useful infographics that can be shared with clients.
To see the final white paper report of the study, click here.
For a detailed reference deck that explains in detail the methodology used, click here.
For brief infographics that highlight the study’s results, click here.
To view the recording of the IFI webinar from August 25, 2022, click here.
To partially fund the costs of the study, we sought sponsorships from our IFI membership and the industry. We are pleased to report that we received commitments from the following companies to sponsor this important research study. These sponsors will have their company names and/or logos associated with the final reports indicating their support to the industry and the research.
Major Association Sponsors
Incentive Marketing Association
Incentive Research Foundation
Promotional Products Association International
Major Corporate Sponsors
Inspirus/Sodexo Benefits and Rewards Services, USA
Marketing Innovators International
Promotion, Incentive & Engagement Professionals
All Star Incentive Marketing
Citizen Watch America
Fujifilm North America
Seiko Watch of America LLC
Enterprise Engagement Alliance