Empower Your People (Motivate With Electronics & High-Tech Incentives part 3-12)
Trend Spotters
No matter what kinds of products you choose to include in your programs, it’s critical to stay ahead of the changes. In any product category, new trends take hold and old ones die out, and in the consumer electronics industry, there’s always something innovative looming on the horizon.
Program planners need to focus on these trends, Rivera said, to stay ahead of these cycles. “Watch redemptions closely so you can prepare selections that are relevant to your demographics,” he said. “You need to anticipate what is desirable in times like these and, of course, understand what can be in store for you as a result.”
Just take a look at the recent 2009 International CES, where more than 2,700 companies showed up to hawk their latest innovations. There were roughly 20,000 new technology products at the show, which always features products that will shape the future of the industry for years to come. Hot trends this year included wireless, 3-D HDTV, advances in OLED, green technologies, Internet TV and digital entertainment.
At the show, Sony President and CEO Howard Stringer kicked things off by unveiling the “CES Seven,” key imperatives for creating the critical user experience. These seven imperatives can give you an idea of where the CE industry might be heading next. According to these suggestions, products should: 1. interact seamlessly across industries; 2. be service-based; 3. be multifunctional; 4. support open technologies; 5. advance the new shared experience; 6. create new value chains; and 7. be green.
So that’s what’s impacting the development horizon, but what are consumers looking for now?
According to CEA’s Director of Industry Analysis, Steve Koenig, “Consumers continue to seek the best picture, sound and entertainment experience available. With a majority of U.S. homes owning an HDTV, consumers are looking to add high-definition content through Blu-ray players, gaming devices and home audio systems.”
More specifically when you’re looking for items for incentive and reward programs, Romeo said the major trends are, “more user-friendly, all-in-one, stylish (in terms of color and design) and significantly smaller products.” Specifically when it comes to cameras, things like face detection, motion detection and even blink detection mean a camera can do almost anything. (We’ll highlight more trends in the digital camera arena in our May/June issue.)
Some items are always popular incentives and rewards, Reinberg said. “Televisions, iPods, headphones, Bose home theater systems, golf and sporting goods, GPS units and vacuums are extremely desirable,” he said. “Furniture and outdoor heaters are also popular now that people are entertaining more at home.”
The desirability of electronics spreads across all demographics. “The explosion of consumer electronics has a universal appeal to all ages,” Reinberg added. “There will always be likes and dislikes, but everyone seems to be attracted to cutting-edge technology for home and play.”
Electronics are particularly attractive for younger audiences, according to Rymax’s Rivera. “We have found that younger audiences usually gravitate to more technology-orientated or trendy products,” he said.
How can you sort through all of the trends to ensure your program is effective? Look for expert help, advised Reinberg. “Don’t be afraid to ask for advice when sourcing awards,” he said. “Take the time to learn about the award recipients and offer something that will appeal to everyone. Ease and value should be key to the offerings.”
To get you started, we take a look here at some hot items from across the incentive industry. When you’re ready to get started, you’ll find that The Davis Incentive Group is just phone call away.
Joseph Buhler Sales/Operations The Davis Incentive Group
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Empower Your People (Modivate With Electronics and High-Tech Incentives)
Perennial Popularity
“Consumer electronics are extremely popular for these programs,” said Jeff Reinberg, president and CEO of Incentive Concepts, a manufacturer’s supplier representing some of the most sought-after brands in the premium incentive industry, including Apple, Bose, LG Electronics and more. “Today people are more familiar with and are seeking the newest, most advanced technologies as soon as they are available.”
But just because they want it, that doesn’t mean they’ll go out and buy the latest and greatest for themselves. Joseph Romeo, Corporate Gifts and Incentives sales rep for Canon U.S.A. Inc., believes electronics make a great incentive because many people “won’t go out and buy an electronic piece if they already have an older one.”
On the other hand, he said, “if they receive one as a gift, it is just that much greater of a value to them.” He added that with many stores closing down, some consumers are having difficulty redeeming gift cards. “When you give a camera, printer or camcorder, there is no fear of redemption,” he said.
While many programs are seeing price points move downward as program planners adjust their budgets to their business’s performance, electronics still represent something participants can aspire to. Reinberg said that while luxury goods are still popular in large programs for top performers, he has seen overall price points move downward. However, he added, “now more than ever, recipients are selecting practical items for their home.”
And over the years, the home has become ever more wired and interconnected. Mark Chisholm and Carolyn Slater wrote in the CEA’s “5 Tech Trends to Watch” for 2008, “We live in a digital world and clearly love it. We relish the convenience and time savings of our digital lifestyle where we can shop, bank and be entertained 24×7.”
Technology is constantly changing and consumer electronics products have allowed people to become increasingly connected—to one another, to knowledge, to entertainment options, to their homes and to the office. This makes electronics perennially popular as an awards choice. According to Hinda Incentives, six of the top 10 items redeemed for 2008 fall neatly into this category. Number one is the Apple iPod, followed by Bose headsets and iPod accessories. Other CE goods appearing in the top 10 include DVD players, digital cameras and GPS units.
Ed Rivera, senior director of national product sales for Rymax Marketing Services Inc., one of the largest national manufacturer’s representatives in the incentive industry, said that in fact, 70 percent of redemptions are electronic in nature. “Electronics have always been and will continue to be a large part of the incentive industry due to its desirability,” he said. “In the fragile economy we’re in, electronics will continue to remain strong as an aspiration award. Price declines, particularly in display panels, have made it more attainable than ever for end users to earn points and redeem for a larger television. People who find themselves spending more time at home want to optimize the experience by having more venues of home entertainment, including products that enhance sight and sound.”
The good news is that while you might think that the most attractive electronics items are on the pricey side, the fact is that you can find brand-name items to fit any program budget. Romeo suggests that if you can’t include a higher-priced item in your program, you can almost always find a great lower-cost item to include. In fact, he said he’s been seeing more redemptions in the lower price-points.
“Companies still want to motivate their employees or sales force, but need to scale back a bit,” he said, adding that “an employee who receives a Canon as a gift, at $1.99 or $1,500, sees the high perceived value in our brand, and that will stay with them for time to come.”
Joseph Buhler Salse/Operations The Davis Incentive Group
Empower Your People (Motivate With Electronics & High-Tech Incentives) Part 1 of 12
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ll I wanted for Christmas was a big-screen TV, a Wii gaming console, an iPod, a new GPS that can save me some gas mileage—oh! and a camcorder for my family to catch the look on my face when I open all these goodies.
OK, the holidays may seem in the distant passt (or future) at this point, but it is interesting to note a couple of trends that were taking hold in late 2008.
First, we should note that according to the Consumer Electronics Association (CEA), nearly 80 percent of adults had consumer electronics on their list for Santa Claus this year, from computers and televisions to video games and cell phones.
And second, according to SpendingPulse, an information service provided by MasterCard Advisors, the electronics and appliance category ended up having a tough holiday season, with declines of more than 26 percent compared to 2007. In particular, sales of more than $1,000 were hard to come by. Furthermore, the CEA anticipates that in 2009 overall, consumer electronics sales will remain essentially flat at about $171 billion (a small drop of 0.6 percent from 2008).
The consumer electronics industry is “resilient but not immune from the business cycle,” remarked Gary Shapiro, president and CEO of the CEA at the opening of the 2009 International CES, the huge consumer technology trade show held every January in Las Vegas. “In a tough economy, our products offer high value for entertainment and an entry point for entrepreneurs creating new business.” Innovation in the industry, he added, has the power to help kick-start the economy.
What does all of this mean for planners working on incentive, reward and recognition programs?
Consumer electronics—always popular among consumers—are just as desirable, and just as innovative, as ever, but consumers are tightening their belts, closing their wallets and staying home to entertain themselves. This gives the electronics and high-tech gear you include as rewards and incentives for your targets even more power (no pun intended) than they already had.
Joseph Buhler (Sales/Operations The Davis Incentive Group)
Story by Emily Tipping… PIPMAG 2009
Consider The Power of One Promotional Product
Most corporations buy stationary products at Office Depot or Office Max. Sure you could do that. Hey it’s convenient and local and, sometimes the price is even competitive. However, you can only brand certain items that they choose or you can’t do it at all and you are forced to buy blank goods. What i’m saying is if you don’t like what you’re putting your brand on and you can’t do it at that store, then why waste the corporate dollars on something that is not helping your company?
When you consider the impact of something as simple as a pen or a business card you began to understand how something so small can mean worlds to the prospective client seeing the item. A study was completed a couple of years ago in our industry that actually tracked the life of one branded pen. The average life of a standard BIC Stic Pen is roughly 1 year and in that one year 30 – 35 people will use that same pen. That means 30 – 35 potential clients that you have reached with a $0.30 pen. Now, consider a Post-It Pad. The life of a Post-It Pad is a little different. These are used every where and for every little note. The life span of a Post-It Pad is 1 to 3 months but depending on the number of pages, the number of people that see each page is different. Here is an example: 1 page can reach 20 people, so 50 pages reaches 1000. Not too bad for an item that can be bought for less that a dollar with you brand on every single page.
Remember the power each item has and the impact that it can have when you let people take them as giveaways. Don’t forget that you can contact our office at anytime if you have any questions.
Joseph Buhler
sales@davisincentivegroup.com
