Welcome

Kevin Lake & Tony RichUKGCVA

Welcome

New Members

•Contis Group Limited•Into The Blue

Guests

•Arjowiggins•Cartamundi•Google Play•Jake Box•Moneytowards.com Ltd•Transmission Marketing•Wider Wallet•Content Card

Andrew JohnsonDirector General

UKGCVA Sales Data Q1 2013

Q1 2012 v Q1 2013

• Consumer Sales 4.6%

• B2B sales 4.7%

• Agents 0.86%

• Paper Vouchers 0.90%

• Retail 6.19%

• Leisure 5.68%

• Gift Cards 7.36%

Market ShareGift Cards 68%

Gift Vouchers 32%

Q1 2012 v Q1 2013 – Consumer Sales

Consumer

Your stores sales

0.27%

Online consumer

27.5%

Gift Card Malls

58%

Third Party Sales

7.98%

Total Consumer Sales

4.6%

B2B

Direct B2B 3.09%

Online B2B 6.21%

Internal Sales 130%

Total B2B Sales

4.7%

Getting the most from your

membership

UKGCVA Delivers

• A forum for networking & discussion with industry colleagues

• Analysis of market trends

• Research

• PR

• Platform for learning and innovation

• Benchmarking & best practice

• Point of contact for regulators & legislators

A forum for networking & discussion with industry colleagues

How?

•Three member meetings per year, average attendance 100

•Smaller project groups for specific discussion

•Social events

Why?

•One of top two reasons members stay members

•Best way to learn about the industry is from each other

•Individual issues are often industry wide

Results

•Well attended meetings by senior personnel

•Sharing issues helps industry be supportive

Analysis of market trends

How?

•Every Issuer member submits quarterly sales data to BDO

•BDO track data and produce reports on industry wide trends

•All individual member data is confidential, no member specific data shared

Why?

•One of top two reasons members stay members

•Gives kudos to the association

•Allows members to bench mark their sales against the industry

Results

•Members understand what their market share looks like

•Helps members develop future plans using market share analysis

•Association and the industry gain PR from data

Research

How?

•Forming co-operative to fund in depth research, cost effective for members

•Using BDO data as a form of research

•UKGCVA asked to participate in wider research e.g. prepaid

Why?

•Assists members future planning

•Allows understanding of customers both B2B and consumers

•Cost effective way of members stretching budgets

Results

•Members get up to date, in depth research they could not afford alone

•Association and the industry gain PR from data

Public Relations

How?

•UKGCVA appoints PR agency

•Agency works with Association to develop industry, association and member features

•Various media as well as speaking at related conferences and events

Why?

•UKGCVA acts as one voice

•Neutral spokesperson, particularly useful in a crisis

•Working together offering comments from lots of members makes more interesting story

Results

•UKGCVA called on for specific comments from printed media to TV

•Features in B2B and consumer printed press very successful

•Features usually include comments from several members

Platform for learning & innovation

How?

•Presentations at member meetings and conferences

•Discussions at project groups & round tables

•Collation of useful materials and documents distributed to members

Why?

•You are busy, UKGCVA helps highlight specific innovations & opportunities

•Learn together so you gain from others understanding

•Saves time in you not filtering out the good from the bad

Results

•Members kept up to date on regulatory changes, e.g. Emoney Directive

•Currently profiling opportunities in E-gifting and SMS

•Profiled exhibitions, events and other outside learning platforms

Bench marking & best practice

How?

•BDO data

•Speaking with industry colleagues

•Specifics of best practice in constitution and other documents from association

Why?

•You know how successful your business is

•You know what standards customers expect you to fulfil

•Understand what your competitors are doing

Results

•Thermo chromic ink mark in gift vouchers

•BDO data showing how your sales track against the industry

Point of contact for regulators & legislators

How?

•UKGCVA works with specific government departments, e.g. HM Treasury, HRMC, FSA

•Assistance in drafting legislation and giving feedback from members

•Acts as a ‘go between’ members and regulators

Why?

•One voice for industry, regulators may not listen to individuals

•Allows specific comments from companies to be made without implication to the company

•Keeps members up to date with proposed changes

Results

•Specific impact on the new Emoney directive

•Working closely with UK and EU regulators on VAT

•Explained the rationale behind the Bribery Act

Neutral Voice

Liaison with Why?

UK Treasury Emoney Directive

VAT

UK Revenue & Customs VAT

UK Financial Conduct Authority Emoney Directive

European Union VAT

Department for Business, Innovation & Skills Potential Self Regulation

Members•Flat structure, all members are equal

•Issuers – members who issue gift cards or gift vouchers

•Service – members who offer services to the industry

The Executive Board•9 members•2 chairs (1 Issuer, 1 Service)•Elected by members

The Secretariat•Director General – neutral spokesperson•Admin support•Outsourced to agency, no employees or office liabilities to UKGCVA

PR Agency Data Aggregation Partner

Annual Conference Organiser

The UKGCVA is governed via its Constitution which is reviewed each year at a members Annual General Meeting.

Tools & Resources

• UKGCVA website– www.ukgcva.co.uk plus members only area

• Weekly Newsletter

• Three Member Meetings per Year

• Annual Conference – open to all

• Social Events

• Project Groups

• Emails

Member Fees 2013/14

• For the 6th year running fees remain the same:

• £2,200 per member

• £800 additional fee for data collection for Issuer Members

£3,000 + vat Issuer, £2,200 + vat Service

Election

• Not enough candidates came forward

• There is no precedence in the constitution for this situation

• Exec meeting this afternoon to agree way forward

Business to Business Research

2012

What is Business to Business?

• Employee Incentives and Rewards• Customer Loyalty and Promotions• Employee Discounts and Benefits• Salary Sacrifice• Christmas Savings Clubs• Insurance Replacement• Legislative Vouchers

In 2012, 55% of gift cards and vouchers

sold were to corporations

Research from UKGCVA

• 2012 UKGCVA members commissioned B2B research• Targeted current Buyers and Non-Buyers of gift cards and gift

vouchers• 148 interviews with clients/buyers

– 97 clients/buyers supplied by UKGCVA members– 51 purchased from list agency

• 100 interviews with non-buyers– Turnover £10m+– Local government and charities

• Asked about:– Employee motivation and rewards– Employee benefits and discounts– Customer loyalty and promotions

Results from Buyers

78% of respondents manage both employee and customer rewards

Buying Relationships

• The highest purchasers generally use an agency to manage the whole scheme

• Some use mix of agent and buying direct

• 54% use more than one supplier

They save us money

Easy to manage, easy to reward all staff quickly

and consistentlyVouchers

work globally

You can restrict where reward money is spent, which you

can’t with cash

They have mass appeal

Vouchers are attractive because…• Lots of choice• Easy to manage• Well-liked• Discounts/Value for money

Future Trends

In 2 Years

Generally Buyers are not familiar with benefits of one channel over another

• Few salary increases, but rewards can be increased

• Greater spend if economy improves• Tax benefits are not as good as they

used to be• Unsure about tax implications

Results from Non-Buyers• All non-buyers were responsible for

purchasing products for Employee Benefits, Employee Motivation and Sales Promotion

• 16% previously purchased vouchers• Reasons for not buying

– Don’t know

– Only purchased on ad-hoc basis

– Moved to other products (such as merchandise)

– Too expensive

– Difficult to manage

• Non buyers know that they can purchase direct or via an agent

• They know SMS and Email delivery is possible

• Don’t know if digital is cheaper than paper and plastic

Recommendations from Research