{"id":68643,"date":"2025-05-21T19:20:22","date_gmt":"2025-05-21T19:20:22","guid":{"rendered":"https:\/\/trucentive.com\/stage\/?page_id=68643"},"modified":"2026-06-29T11:18:27","modified_gmt":"2026-06-29T11:18:27","slug":"mysteries-of-the-incentive-and-reward-industry","status":"publish","type":"page","link":"https:\/\/trucentive.com\/stage\/resources\/resource-library\/mysteries-of-the-incentive-and-reward-industry","title":{"rendered":"Mysteries of the Incentive and Reward Industry"},"content":{"rendered":"\t\t
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Incentive and Reward Mysteries<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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It can be a bizarre bazaar <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Let\u2019s look at some of the Incentive and Reward mysteries<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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On the surface, the corporate incentive and rewards market looks straightforward. Dig down a little and it is a seriously flawed bazaar. Let’s take a look at incentive and reward mysteries.<\/p>

Gift cards, rewards and incentives are an important component of recognition<\/a> and appreciation programs for organizations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Incentive and Rewards\u00a0<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In the not-too-distant past we\u2019d just buy Starbucks or other gift cards, and then manually distribute them to worthy recipients. That isn\u2019t an efficient or scalable model.<\/p>

Incentive companies were created so that organizations wouldn\u2019t have to handle the logistics of buying gifts cards and distributing them.<\/p>

It didn’t take long to realize how much waste existed in gift cards and see the profit potential in concealing what’s happening behind the scenes.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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\n\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t\"incentive\t\t\t\t\t\t\t\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Now?<\/h3>

Now there are dozens and dozens of companies vying for your gift card, incentive and rewards business. Many of them advance the fiction that they are \u201cno cost\u201d to you!<\/p>

But most incentive and rewards programs on the marketplace are not cost-effective and strip value from your reward budget. That leaves you less to devote to the very people who deserve the gift.<\/p>

Broken model<\/h3>

The incentive and reward industry developed around a broken financial model that isn\u2019t beneficial to the organizations giving the awards. \u00a0It\u2019s a model that gambles on the hope that your gifts may never be successfully redeemed.<\/p>

Far too much of the value of gift cards ends up in the coffers of the companies that sell the programs, and not in the gift cards and rewards that recipients get. There is little transparency as to what\u2019s being paid for versus what\u2019s being delivered. The model isn\u2019t conducive to a good user experience for reward recipients.<\/p>

A lot of value is just lost.\u00a0<\/p>

You want to reach 100% redemption. You want your program to be a complete success.<\/p>

The gift card industry is hoping you don’t reach everyone you intend and that your program has breakage.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Incentive and Reward mysteries \u2013 and hidden traps <\/h2>\n

Gift card programs come with a lot of variety and options, but also with a lot of terms and conditions, expiration dates and potential areas that can strip value from your programs.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t

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Click to expand<\/h4>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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1.\tNon-Refundable Deliveries <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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When incentive companies sell you gift cards, they receive the full value of the cards regardless of whether the card is ever redeemed. You pay full price, no matter if the gift is ever successfully redeemed.<\/p>

Incentive companies know that redemptions don\u2019t reach anywhere near 100%. They get to bank the unredeemed value, not you.<\/p>

With traditional non-refundable incentive deliveries, every unclaimed or forgotten reward is money left on the table\u2014and it happens more often than you think. According to Paytronix, only 68% of gift cards are ever claimed, meaning over 30% of your budget could simply disappear. TruCentive changes that. Our platform lets you set a specific expiration window for your deliveries\u2014whether it\u2019s days, weeks, or months\u2014so unused rewards automatically expire after your desired timeframe. When they do, the funds return to your account, ready to be reinvested into new campaigns. It\u2019s a smarter way to protect your budget while still delivering an exceptional recipient experience.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/details>\n\t\t\t\t\t<\/div>\n\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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2. Expiration dates <\/div><\/span>\n\t\t\t\t\t\t\t\n\t\t\t<\/path><\/svg><\/span>\n\t\t\t<\/path><\/svg><\/span>\n\t\t<\/span>\n\n\t\t\t\t\t\t<\/summary>\n\t\t\t\t
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Believe it or not, in many states and countries, cards can have expiration dates. When that date passes, the card is no longer redeemable.\u00a0\u00a0<\/p>

All U.S. states adhere to the federal rule that gift cards cannot expire for at least 5 years (either from the date of purchase or the last time funds were loaded)<\/p>

Several states go further, completely prohibiting the expiration of gift cards. According to authoritative legal analysis, at least 10 states fall into this category\u202f:<\/p>