The power of paper

Despite the voucher and gift card industry embracing new technology with chip and pin and e-vouchers, the more traditional paper voucher remains highly popular with businesses and consumers.

So what is the power of paper? In the business-to-business voucher market, vouchers are often required for staff rewards, recognition, bonuses and motivational schemes.

There are several powerful reasons why businesses select paper vouchers.

First is instant availability.

A company wanting to reward staff for success in a short-term incentive, for going beyond the call of duty or for exceptional performance, may want a reward that can be obtained over the phone for instant delivery the following day.

Set-up cost is also another important factor that businesses have to take on board when choosing a reward scheme.

With relatively expensive set-up and operational costs associated with plastic, many businesses are continuing to favour the lower-cost paper voucher option.

Finally, there is the simple fact that paper vouchers continue to be popular with recipients.

They are a tangible reward like being presented with money and still extensively bought by consumers as personal gifts.

The consumer perspective can therefore be an important influence on the business decision.

There is still plenty of life in paper vouchers and I perceive this to continue for many years to come.

People quite simply like the touch and feel of paper currency.

With paper vouchers they also know exactly how much they have to spend.

This is rarely the case with plastic.

A woman in a supermarket with a plastic card may not have enough credit on it to pay for her purchases and so will be thoroughly embarrassed and may not use the card in the future.

Due to the plethora of plastic cards that the average person carries it is almost impossible to remember how much credit is available on each one.

Hence the card supplier will win on non-redemption, as people cannot be bothered to check all their plastic cards prior to purchasing items.

I can see little evidence that the public is losing their fondness for paper vouchers.

It would be a mistake to talk in terms of one format replacing the other.

Plastic may suit retailers, but it's not necessarily what the public wants.

I think most within the industry will adopt an approach that utilises a combination of all three: paper, cards and e-vouchers.

Can we expect the consumer to continue with its fondness for the traditional paper variety? The answer is quite simply yes.

Although the level of computer ownership is high in the UK, many employees do not have access to intranet or internet facilities and therefore are unable to take advantage of new technologies.

Employers will therefore need to continue with traditional paper vouchers.

Paper vouchers are a very popular form of bonus at Christmas.

Whereas a cash bonus is swallowed up in paying off an overdraft or bill, vouchers are visible and tangible and can actually be used to purchase an item that will be perceived as a reward by the employee and his/her family.

Advances in technology in this industry should always lead the way and it is only right that the consumer should benefit from this.

However, I strongly believe that the paper voucher is here to stay and indeed will lead the way.

Recipients still value its merits and it clearly has an important role to play in both the consumer and corporate voucher market.

I strongly believe that paper vouchers will continue to coexist alongside that of its newer siblings, plastic and e-vouchers in the sales promotion mix.

Author Julie Rosehill is sales director at the Voucher Shop, one of the leading providers of vouchers in the incentives, rewards and flexible benefits market sectors.

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