All Star Incentive Marketing’s August 2023 review highlighted the Incentive Research Foundation’s outlook for merchandise and other non-cash rewards. The underlying survey was conducted in late August and early September 2022, so its views on 2023 were expectations formed before that year began. All Star review IRF report
The study covered 239 respondents in the United States and Canada and 304 in the United Kingdom, Italy, Spain, France, Sweden and Germany. Respondents had responsibility for non-cash incentive programs and said they could answer budget and spending questions. North American recruitment combined 200 panel respondents with 39 volunteers from industry networks. Results were unweighted, with stakeholder groups pooled. They describe participating program professionals, not a representative survey of reward recipients or all employers. IRF report IRF methodology
Inflation raised perceived reward value for more respondents than it reduced it
Half of North American respondents believed inflation made non-cash incentives more valuable to recipients; 23% thought it made them less valuable. In Europe, the corresponding shares were 38% and 29%. The question asked program professionals for their beliefs. It did not measure recipients’ purchasing power, motivation or satisfaction. IRF report
Perceived effect of inflation on non-cash rewards
Respondents’ beliefs in late August and early September 2022; North America n = 239 and Europe n = 304.
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Source
IRF report page 4. More and less valuable combine the respective somewhat and significantly responses. The chart omits the neutral response and may not sum to 100% because of rounding. These are unweighted professional perceptions about gift cards and merchandise, not observed recipient outcomes.
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| Category | More valuable | Less valuable |
|---|---|---|
| North America | 50% | 23% |
| Europe | 38% | 29% |
All Star linked the finding to pressure on household discretionary spending. That is a plausible explanation offered by the company, but the survey does not test whether inflation caused higher engagement with a reward program. The 50% North American result is half of respondents, not a majority. All Star review IRF report
Reported spending increases covered both merchandise and gift cards
For the preceding year, 44% of North American respondents reported increased merchandise spending and 14% reported a decrease. The original IRF report also shows that 46% reported increased gift card spending and 15% reported a decrease. These percentages count respondents reporting a direction of change; they do not quantify the amount by which budgets grew. IRF report
North American respondents reported more increases than decreases
Direction of spending change over the year preceding the late August to early September 2022 survey.
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Source
IRF report pages 8 and 10; North American survey n = 239. The questions ask whether investment increased, decreased or stayed the same in the past year. Unchanged responses are omitted. Respondent percentages are not market growth rates, sales totals or like-for-like expenditure measurements.
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| Category | Spending increased | Spending decreased |
|---|---|---|
| Merchandise | 44% | 14% |
| Gift cards | 46% | 15% |
All Star’s review drew particular attention to clothing, branded merchandise and food gifts. Those categories show what participating programs used, while the spending-direction results indicate how widely respondents reported budget changes. Neither establishes All Star’s own sales performance or a causal return on incentive spending. All Star review IRF report
The event gifting figures were plans for 2023
For the coming year, 62% of North American respondents planned to increase event gift budgets and 12% planned a reduction. In Europe, 50% planned an increase and 16% planned a decrease. These are forward-looking responses collected in 2022, even though All Star discussed them in 2023. IRF report
Planned changes in event gift budgets for 2023
Budget expectations recorded in late August and early September 2022, before the forecast year.
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Source
IRF report page 13; regional survey samples were n = 239 and n = 304. The chart presents plans, not verified 2023 spending. Unchanged budgets are omitted. No follow-up outcome measurement is supplied by All Star’s review.
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| Category | Planned increase | Planned decrease |
|---|---|---|
| North America | 62% | 12% |
| Europe | 50% | 16% |
The review also described higher event gifting budgets during 2022. The distinction matters for buyers comparing program demand: the retrospective spending questions and the next-year plans refer to different periods. Together they explain why All Star described the outlook as positive, while leaving actual 2023 spending and recipient effects unverified. All Star review IRF report
In this article
Maya Bennett
Maya Bennett covers customer loyalty, employee rewards and incentive programmes for Gift Card News.