How you and your team can both reap the rewards of a culture shift

/in , , , , , /by

It can start with something as simple as ‘thank you’.

Motivation through rewards isn’t a new idea. The notion that ‘people respond to incentives’ is a cornerstone of economics. Each new generation reinvents the concept. One of the buzz phrases out there right now is ‘nudge theory’.

This is based on the idea that you can influence the behaviour of individuals by changing what has been called “choice architecture”. In Liverpool, a behavioural science company was asked to install audio-visual prompts at a dangerous road crossing in the city centre. They used ‘embedded nudges’ to encourage safer crossing by pedestrians.

There is no doubt that subtly manipulating human behaviour has a place in specific settings such as road safety – but it seems cold and transactional. It isn’t very collaborative.

Moving away from transactional dynamics

Millions of people spend a significant proportion of their lives in their workplace. It is how they pay their mortgages, put food on the table, heat their home and are able to do the things they enjoy, whether that is socialising, eating out, going on holiday or something entirely different.

We accept that we have to graft a little to get the things in life we need and want. The traditional view is that work is a mainly transactional concept: we turn up and do a job for our contracted time and we receive money in return.

But given how much time we spend at work, it is not unreasonable to expect to spend those shifts in an environment that makes us feel welcome, values our ideas and input and acknowledges our hard work.

Prompting productivity

Study after study has shown workplaces that create this kind of environment are more productive and more likely to retain talented people.

It was, therefore, surprising to find out how many employees in the UK feel undervalued at work. According to a new survey, 10m people across the country are unhappy in their jobs with an incredible 79% of employees saying they would take a job elsewhere if given the opportunity.

Corporate rewards and employee recognition specialist Love2shop carried out the study. It also found that just 12% of employees ‘strongly agree’ that their employers are generous.

Love2shop organises reward and recognition programmes for both employees and customers in partnerships with firms and organisations in multiple sectors. Its reward services include the popular Love2shop brand, which offers physical or digital vouchers that can be spent with more than 150 leading consumer brands.

But a rewards programme has to be more than just a manager handing a voucher to an employee who has completed a piece of work. People want to feel genuinely valued and appreciated. That requires a culture shift within the organisation.

Small gestures have a huge impact

 In a discussion on the Road to Recognition: How to make employees feel valued organised by HR Magazine, Nebel Crowhurst, Vice-President of international education partnering organisation Into University Partnerships, said even the smallest gestures can have a huge impact.

She explained: “The things that really stand out, sometimes, are really small moments when someone can just say ‘thanks’. That thanks can be for the tiny things when you’re having a difficult time.

“Maybe someone notices you struggling and says ‘what can I do to help you?’ or ‘thanks for that really great piece of work that you did.’

“No matter what your role in a business, it’s just really nice when you have that feeling of someone saying thank you for that real ‘in the moment’ appreciation. Those moments that come from all different directions are what make a difference. People feel cared for and feel like they belong.”

Making people feel connected

Also on the panel was Stuart Curtis, senior director of global talent development at Workhuman. He said an effective recognition programme can also help more introverted employees feel more part of the team

“Investing in recognition also helps people who are highly introverted and don’t like to talk about themselves,” he said. “It’s got to be authentic. It can’t be generic, it can’t be copy and paste. Done right, the impact that has is just incredible in somebody’s life.

“People who are recognised frequently are 70% more likely to report thriving in the rest of their life because it gives some incredible feeling. They’re also five times more likely to connect that success to the culture of your organisation.”

Once you have started to establish a business culture that is both inclusive and nurturing, building on that with tangible rewards can create a powerful offer that can help create a productive and dynamic environment.

Strong results, low cost

Frank Creighton, Director of Business Development at Love2shop, said: “The extent to which UK workers feel undervalued and under-appreciated is worrying. The fact that one-third of staff feel undervalued should be a massive wake-up call for UK business.

“How undervalued employees are resolving this situation poses even greater concern. Our report indicates that many will continue to vote with their feet by finding a business that does appreciate them.”

This unwillingness by some employers to value their people has led to the rise of a phenomenon known as the ‘Great Resignation’. With the number of job vacancies at an historic high, people are seeking new jobs in ever greater numbers. This is bad news for staff retention and business continuity – and ultimately, expenditure.

“This ongoing nationally recognised trend is costing companies a huge amount of unexpected expenditure in recruitment, training and time,” added Frank. “That’s why it’s so important for more businesses to start making staff feel appreciated – by changing their attitude towards rewards.”

Attract, retain and engage through rewards

Love2shops offers a choice of multi-retailer gifting rewards, helping businesses attract and retain employees and customers.

With its award-winning digital platform, Love2shop also enables clients to plan, launch, communicate and maintain incentive or reward programs with minimal effort while delivering performance improvement.

Love2shop’s Everyday Benefits Card is already proving invaluable for employers who want to support their staff during the cost of living crisis. It offers a 7.5% discount on card loads to employees, helping them reduce their day-to-day spending.

Appreciate has calculated the average family can save more than £1,300 a year via the Everyday Benefits Card. It can also help with one-off purchases which is useful with Christmas just around the corner.

Visit love2shop.co.uk to learn more about how Appreciate can help your business introduce a reward and recognition programme that is cost-effective, simple and right for you.

Everyday Benefits cards and Love2shop are flexecash products. Flexecash is the prepaid card platform that issues flexecash Love2shop Cards. This facility is provided by Park Card Services who are Authorised and Regulated by the Financial Conduct Authority to issue electronic money. FRN: 900016.

Love2shop Cards are regulated by the Financial Conduct Authority and as such we may need to complete an electronic identity check.

Read our previous blogs…

What is customer acquisition

What is Customer Acquisition?

50 Employee Perks

50 Employee Perks to Offer Staff

What is customer acquisition

Customer Acquisition Strategy

Experts explain clear benefits of employee and customer rewards

/in , , , , , , /by

 Families across the UK could save a whopping £1,300 a year on their everyday spending if employers rolled out reward schemes to their staff.

 That was one of the revelations that came out of a webinar organised by leading corporate rewards and vouchers business Love2shop. An audience of businesspeople heard how rewarding their staff would lead to a happier, more productive workforce and a thriving business. 

 The Success Through Adversity webinar featured a number of expert speakers outlining how employers could help people within their organisations weather the worst cost of living crisis in a generation. 

 Increasing positive engagement through rewards 

 Love2shop offers several options for employers looking to reward and incentivise both staff and customers. For a relatively low cost and simple set-up, products such as the Everyday Benefits Card and the Love2shop Engagement Platform can help transform a business. This is in addition to the range of Love2shop gift cards, e-gift cards and vouchers that have been used by businesses for staff and employee rewards for many years. 

 Frank Creighton, Director of Business Development at Love2shop, explained how Love2shop has been used by millions of people for 30 years and can be a key tool for businesses looking for efficient ways to offer rewards. 

 “Vouchers, gift cards and e-gift cards help businesses of all sizes across multiple sectors attract and retain both employees and customers,” said Frank. “Love2shop has supported organisations from the NHS to care homes, professional services, manufacturers, financial services and every size of business from small to FTSE-100s.
 “They all have the same need: to reward, engage and incentivise people. Research has shown that if employees are rewarded, they are more likely to be engaged and productive and that is a win-win.” 

 Supporting employees through economic challenges
 Addressing the cost of living crisis, Frank explained that it was more important than ever to support their staff through what is a very worrying period. 

 “From speaking to businesses we know they are keen to support their people. Fortunately, we do have the products and services to help employers support their staff at this time,” he added. 

 Frank outlined how the Everyday Benefits Card could make a real tangible difference to people’s lives. It covers many leading high street and online brands included in the Love2shop platform. 

 He said: “It is a real solution for employers who want to support their staff during the cost of living crisis. The way it works is very straightforward. 

 “It’s a prepaid card that allows employees to load funds at a 7.5% discount. It can then be spent in 90+ high-street stores that are part of Love2shop. It also opens up access to discounts on selected supermarket gift card loads, which employees pay directly from their debit card and which can reduce the cost of their essential spending.  

 “With Christmas coming it can also help with one-off purchases. We have calculated the average family can save more than £1,300 a year via the Everyday Benefits Card. 

 “It can be used for everyday essentials, meals, days out or bigger purchases such as holidays and we can offer employers a free trial card if they get in touch.” 

 Keeping hold of talented employees 

 Love2shop recently published its Employee Value Report, a revealing snapshot of the level of worker happiness across the economy. It made for stark reading for employers. It calculated that across the UK 10m employees felt undervalued by their employers with eight out of 10 seeking a new job elsewhere. 

 “It is well worth a read,” added Frank. “It shows how rewards and recognition are now more crucial than ever. An engaged employee is more productive and will generate more profit.” 

Love2shop Engagement Platform is an online tool which offers a relatively low-cost way of implementing and managing an employee and customer rewards and incentive schemes. It’s flexible, so businesses can choose either an off-the-shelf platform or have one tailored to the specific needs of their business. 

 Many employers are concerned about both the costs and logistics of setting up a rewards programme as they believe it may be too time-consuming and expensive. 

 “They have to be able to show a return on investment,” said Jamie Clarke, head of the Love2shop Engagement Platform. “Our platform manages most of the administration and monitoring of a reward scheme for the client.  

“We offer a modular approach with a platform offering all the functionality required to get any incentive, loyalty or employee recognition scheme up and running super-fast with lower costs. It is simple to use and we can work with employers to tailor the platform should they need to.” 

 As well as employee engagement, Jamie talked about how Love2shop can also help with customer retention. He referred to Love2shop’s relationship with Brakes, which is one of the UK’s biggest wholesalers to the hospitality industry. 

Using the Love2shop Engagement Platform, Brakes customers were offered a blend of discounts, cashback, charitable opportunities and Love2shop rewards as part of the ‘Help for Hospitality’ campaign in 2021. 

 It was such a success it was awarded Best Channel Partner Programme at the 2021 Incentive Awards. 12 months later, Love2shop has just retained that award for their work with another client – Buildbase.  

 “Implementing a programme does not have to be complex,” added Jamie. “Once we understand your needs we can project-manage everything. We deploy modules to help you set goals and targets and generate automatic communications. 

“We also have mechanisms for data exchange. It means you can input raw data into the platform and it will crunch the numbers. It can take anything between four to 12 weeks to implement and ultimately these schemes pay for themselves – they deliver results and a strong return on investment.” 

 Those attending the webinar also heard from former England football international Jill Scott MBE. The ‘Lioness’ told the audience how critical reward and motivation was in sport. 

 Also speaking was Rebecca Stevens, a business psychologist and founder of Work Brighter. She has worked with hundreds of businesses and leaders across multiple sectors. 

 She told the webinar that creating motivation and engagement was a common topic when she spoke to business leaders  

 “People have intrinsic motivations, such as satisfaction and pride about a job well done and extrinsic motivations, such as a promotion or a pay rise. Extrinsic things can help reinforce behaviour and we need to move towards a positive reinforcement of the behaviours we want to see in a very personalised way.”

Referring to the Love2shop Employee Value Report, Rebecca said the finding that 75% of people believing that companies that offer rewards were more likely to attract a better calibre of employee did not surprise her, adding: “The reward strategy has to have an individualised aspect to really work.” 

 Concluding the webinar, Julian Coghlan, Love2shop’s Interim Chief Executive Officer, said: “Not only is reward and recognition a key element of any successful business model, it is also crucial to the morale and loyalty of individuals. We are here to help… we can offer a real benefit to your business in the current economic climate.” 

 Everyday Benefits cards and Love2shop Cards are flexecash products. flexecash is the prepaid card platform that issues flexecash Love2shop Cards. This facility is provided by Park Card Services who are Authorised and Regulated by the Financial Conduct Authority to issue electronic money. FRN: 900016.  

Love2shop Cards are regulated by the Financial Conduct Authority and as such we may need to complete an electronic identity check. 

Physical Love2shop vouchers, Love2shop e-gift cards and reward codes and Love2shop Holidays gift cards are not regulated by the FCA. 

Read our previous blogs…

What is customer acquisition

What is Customer Acquisition?

50 Employee Perks

50 Employee Perks to Offer Staff

What is customer acquisition

Customer Acquisition Strategy

Cost of living crisis may fundamentally change the employer-employee relationship

/in , , , , , , /by

Cost of living crisis may fundamentally change the employer-employee relationship

UK inflation is now in double figures, hitting 10.1% in July, and the Bank of England is warning of 13% by the end of the year.

Millions of people are facing a tough autumn and winter. It seems now the cost of pretty much everything is rising – filling up your car, buying groceries. And the projected cost of powering and heating our homes reaches ever more eye-watering levels.

People are struggling now and are likely to find their incomes squeezed even more over the coming months. However, for some people, extra help is coming from what perhaps they might see as an unexpected source – their employer.

For generations of people their relationship with their employer was quite simple. They would come into work each day for a set number of hours and would be paid accordingly for that time. For some there might be bonuses.

The corporate mantra ‘our people are our greatest asset’ may have been trotted out every now and again but such declarations were often met with an eye-roll from overworked workers. As far as they were concerned the relationship was purely transactional.

When employers showed people they were their greatest asset

In the years leading up to the COVID-19 pandemic there were signs of a cultural shift. More enlightened employers started to talk about ‘wellbeing’. No doubt this was partly inspired by multiple studies showing mental health issues were costing UK plc billions each year in lost productivity.

Environmental Social and Governance (ESG) came to the fore. This asked what companies were doing to cut carbon emissions, address diversity and, crucially, focus on the wellbeing of their teams. Investors are now increasingly looking at what ESG framework a business has in place before they part with their money.

This new culture of enlightenment accelerated during the pandemic. Firms, large and small, simply had to demonstrate they had procedures in place to minimise the risks to their staff. If they wanted to keep operating, they had no choice but to put protections in place.

And it could be argued the cost of living crisis is one of the first big tests for ESG. Directors and HR departments are looking at their staff and they are seeing people struggling to make ends meet. A growing number of businesses are realising they can’t just say ‘well, that has nothing to do with me’.

Wage stagnation is prompting employers to respond in new ways

We are seeing a rise in industrial disputes with unions pushing for significant pay rises and some companies, at least initially, resisting. However, there is a number of employers who are stepping up to the plate. Car maker, Rolls Royce, is giving employees an extra £2,000 in cash. Banking giants, Barclays and Lloyds, are doing similar.

But this cultural shift is about much more than cold hard cash handouts, as welcome as they are. The most forward-thinking employers are taking a more holistic approach to fostering a workplace culture that makes people feel valued through the good and bad times. Creating relationships that go beyond the transactional.

Love2shop is now working with employers and their HR teams across multiple sectors. It is helping them to generate a positive culture by making people feel valued, recognised and rewarded.

“Love2shop vouchers are truly valued by our employees for the sheer variety they offer.”

One such business is Evri. A home delivery specialist, Evri has prospered thanks to the boom in e-commerce. It delivers packages to people’s homes, workplaces, as well as to ParcelShops and Lockers, seven days a week. It delivers more than 600m parcels a year on behalf of retailers including Next, ASOS and John Lewis.

Thanks to Evri’s rapid growth it now employs 6,500 people across the UK. It wanted to establish a rewards programme and approached Love2shop for help.

Working together they established the company’s ‘My Rewards’ programme using a combination of both Love2shop Digital Reward Codes and paper Love2shop Gift Vouchers.

Alongside the Love2shop Digital Reward Codes and paper Love2shop Gift Vouchers, there is a suite of products including Love2shop Contactless. Love2shop is also accepted by more than 150 leading UK consumer brands including Wilko, Iceland, Matalan and Argos, and Marks & Spencer (through exchange). People can use them to pay for everyday essentials and for little luxuries.

Evri’s My Rewards platform allowed colleagues to award one another Reward Points for their achievements at work to eventually be exchanged for prizes. It also frequently offered ad-hoc recognition, or ran on-site competitions, across their sites.

Rewards needed to be kept simple to redeem because many Evri employees speak English as a second language. This can present a challenge if a redemption process is complex or involves lots of text instructions.

Love2shop’s digital platform allows businesses to easily scale up

With such a diverse workforce, it was important that a broad variety of rewards was available through the scheme. And, because of its ongoing growth, Evri required a reward which could easily scale to service an ever-expanding workforce.

Evri’s Internal Reward Team, implementing the My Reward platform, also needed fast order turnaround to manage the demand from employees during busy staffing periods.

Reward Codes easily integrate with Evri’s My Rewards system while keeping simplicity a priority. Delivered by email, and redeemed without registration, they were the perfect fit for Evri’s platform and their staff’s needs.

Paper Love2shop Gift Vouchers make for excellent on-the-spot and ad-hoc rewards. They’re ideal for audiences with limited or differing computer skills or access to the Internet.

Sarah Woolley, a Reward Specialist at Evri, said: “Love2shop provides a quick, easy and reliable service and their Love2shop vouchers are truly valued by our employees for the sheer variety they offer. There really is something for everyone.

“The end-to-end process from ordering reward codes or vouchers and awarding these to employees is easy to navigate and quick, which works really well for us as we are such a fast-moving business. I would definitely recommend Love2shop to anyone looking for a flexible and comprehensive reward solution.”

Shift in workplace culture could ease burden of cost of living for employees

Many people across the UK will struggle to pay their bills in the coming months. It is a tough time for sure but what hopefully will emerge from this challenging time is a genuine shift in workplace culture.

Smart businesses are now recognising that the traditional relationship between employer and employee is changing. People want to be paid well but they also want to feel like they are part of an organisation that values them as people as well as the skills they bring to the job.

Companies that fully embrace this new way of doing business will create happier and more highly-motivated workforces as well as profitable and successful businesses.

You can read the Evri case study here.

Read our previous blogs…

What is customer acquisition

What is Customer Acquisition?

50 Employee Perks

50 Employee Perks to Offer Staff

What is customer acquisition

Customer Acquisition Strategy

Supporting employees is a win-win for businesses facing economic challenges

/in , , , /by

Supporting employees is a win-win for businesses facing economic challenges  

So much of the media coverage on soaring energy prices and inflation is focused on consumers – but businesses are facing a crisis too. 

Britain’s private sector has emerged battered and bruised from the pandemic only to face what is arguably an even bigger threat. Businesses such as restaurants are reporting projected energy bills quadrupling, threatening their survival.  

New Prime Minister Liz Truss’ new energy support package for businesses is welcome news for businesses, but there is still uncertainty about how effective the six-month programme will be, with many employers still worried about the winter.  

The cost of living conundrum 

Of course energy support packages – whether for individuals or businesses – do not address the whole cost of living problem. In August inflation reached double figures for the first time in decades. For consumers the prices of essential goods, such as food, are soaring. 

At the same time businesses are grappling with rising input costs presenting them with a dilemma – how long do they wait before passing on those extra costs to their customers, who are themselves struggling? It’s a vicious circle. 

On the day Liz Truss entered Downing Street Tony Danker, director-general of employers’ association the CBI, sent her an unequivocal message. He said: “Most immediately, support for struggling households and firms in jeopardy is top of the in-tray. 

 “This may not be the pandemic, but the exceptional circumstances we now face mean Government must play a central role in supporting our economy. 

 “And if we’re serious about getting the UK growing again, ensuring any slowdown is short and shallow, we need a serious plan for growth. It needs to be bold, unconventional and rooted in the very real opportunities that still exist for the UK to thrive.” 

Through the summer the CBI launched a new campaign - Managing the cost of doing business. This was two-pronged – it asked Government to introduce measures to support employers and offered its own advice for businesses looking to manage their costs. 

These included tips on managing costs in the workforce, rising energy bills and boosting operational resilience. Click here to find out more details. 

Retain and reward 

Of course, cost-saving measures present employers with another dilemma. They know they have to reduce costs but they also understand their employees are hurting too. There is a need to offer support. And it makes sense. As they emerge from the crisis they will need to retain their best people. 

Even before inflation started to rise, companies across the UK were struggling with labour market shortages. These have been particularly acute in sectors such as hospitality. Closed doors during lockdowns led to many workers seeking opportunities in other sectors. 

In August the Chartered Institute of Personnel and Development (CIPD), the professional body for HR and people development, said the UK’s “hiring boom” was continuing. It reported that pay awards, driven by the “incredibly tight” labour market and rising inflation, had hit a record high in the private sector. 

“Employers are pulling out all the stops to attract, and crucially, retain staff,” the CIPD said. However, it warned that “pay increases cannot be sustained over the long-term”, adding: “Employers should look at other ways of supporting financial wellbeing in the cost-of-living crisis, such as enhancing their overall benefits package.” 

Recruitment is unavoidable. But every employer knows that when you bring a new person into your business, you never quite know what you are going to get. They may have the skills but are they a good fit for your team? The cost of bringing in a new hire is also a serious consideration. 

Companies may want to consider the possibility that the answer to their recruitment problems may be right under their noses. Training and upskilling members of your existing team offers multiple benefits. New skills mean new opportunities and that makes people feel valued. It’s an ideal retention strategy. 

Training and upskilling also needn’t cost the earth – upskilling existing team members costs on average one-third less than recruiting from outside your business.  

In addition, all employers in the UK can access a minimum of 95% Government funding for apprenticeships.  

Smart recruiting 

We think of apprenticeships as being for young people. However, there is no upper age limit on apprenticeships. They can be used to upskill your existing workforce. Apprenticeships are delivered from Level 2 (GCSE equivalent) through to Level 7 (Masters’ Degree equivalent). 

If you do decide to bring in someone new as an apprentice, you can mould them from day one to fit your business needs and its culture. Hiring people ‘off-the-peg’ with previous experience can be more time-consuming and expensive. 

Employers who pay the Apprenticeship Levy (those with a wage bill in excess of £3m per year), can reinvest this funding back into their business in the form of apprenticeship training. They can also transfer up to 25% of their levy to other employers. 

Make an impact with small actions 

Even if people are in a reasonably well-paid job with good prospects, many are still seeing their anxiety levels rise due to the cost of living crisis. In an ideal world we would hang up our troubles with our coats when we walk into work each morning. But life isn’t quite that simple. If your workplace is stressful, that just adds to the burden. 

According to the Health and Safety Executive work-related stress, depression or anxiety represented 50% of all work-related illness in 2020-21. That can have a significant impact on productivity. Research published by YouGov in July revealed 52% of UK workers saying they feel “very” or “fairly” stressed at work. 

An employer can’t magic away people’s real-life problems but there are practical things they can do to just make things that little bit better. Simple gestures such as free tea and coffee at work, or fresh fruit, can go a long way. 

Meaningful rewards 

For businesses that want to go a little further, Love2shop can work with HR departments to create a tailor-made rewards programme for their employees. It has already forged successful employee engagement partnerships with countless firms across the country. 

One product that is increasingly popular with HR departments is the Everyday Benefits Card* delivered via its popular Love2shop brand. Love2shop is one of the UK’s best-known gift card and voucher providers. 

Around 200 retailers and well-known brands are partnered with Love2shop. They include Marks & Spencer, Wilko, Iceland, Halfords, Matalan, Argos, Costa, Harvester, Tui, Jet2Holidays and many, many more. 

Once an employer is signed up, the Everyday Benefits Card can be delivered to the employee’s workplace or even their home. The employee goes online, completes a simple registration and then load funds onto the card. 

Funds they load onto the Everyday Benefits Card are immediately discounted, meaning they can enjoy great savings on essentials such as food, luxuries like a meal out or even a holiday. 

It can also be used to make a healthy difference to peoples’ lives. With Halfords for example, people could get a great deal on a bicycle under the Cycle to Work scheme.  

We live in difficult and uncertain times but, with a little bit of creativity, employers can make a real difference to the lives of their hard-working teams and retain all the vital skills and knowledge they need to remain strong when the economy begins to recover. It is not only the right thing to do but makes perfect business sense. 

*The Everyday Benefits Card is a Flexecash product.  

Flexecash is the pre-paid card platform which issues the Love2shop Cards. This facility is provided by Park Card Services Ltd who are Authorised and Regulated by the Financial Conduct Authority to issue electronic money. (FRN: 900016)  

Read our previous blogs…

What is customer acquisition

What is Customer Acquisition?

50 Employee Perks

50 Employee Perks to Offer Staff

What is customer acquisition

Customer Acquisition Strategy

Cost of living rise presents big challenges – and there are ways to mitigate the impact

/in , , , , , , , , , , , , , /by

Evidence of the UK’s worsening cost of living crisis is becoming impossible to ignore – it is there in the data and in countless anecdotal examples.

One high street butcher, Raymond Millar, reports that his customers had already started saving for their Christmas dinner in July. His savings scheme that allows people to buy their meat for the festive season doesn’t usually start until September.

Then there is the GP, Dr Laurence Dorman, who for more than a year has been offering food vouchers to his patients. He is now giving them out with increasing frequency. Dr Dormam told the BBC the cost of living crisis could have “massive, profound implications” for patients’ health.

It feels like the price of everything is on the rise. As we emerged from the pandemic supply chains struggled to keep up with demand. This caused an initial spike in inflation and now the Russian invasion of Ukraine has accelerated the crisis.

Energy costs push inflation upwards

Russia is a major global source of oil and gas and the war has put huge constraints on supply. From June 2021 to June 2022 gas prices for UK households soared by 95% and electricity prices by 54%. The UK’s wholesale electric price is linked to the price of gas.

From October 1, the energy price cap will go up further. The price cap is a mechanism that sets the maximum amount that suppliers can charge in England, Scotland and Wales. From October the typical annual gas and electricity bill is likely to reach £3,358, according to consultancy Cornwall Insight.

In contrast, in October 2021 the average annual bill was just £1,400. And Cornwall Insight is forecasting this could go above £4,200 by January 2023. Millions of people are wondering whether they will be able to afford to switch the heating on at all this winter. This may dampen the enthusiasm from some for working from home.

Finance and consumer rights guru Martin Lewis, says: “This is a national crisis on the scale that we saw in the pandemic.”

Martin, and many others, are now calling on the government to take urgent action to soften the blow. From September it is likely that, whoever is prime minister, whether that’s Liz Truss or Rishi Sunak, will be forced to act. Both have been vague on the issue during their campaigns. But once they take office, the pressure to act will be irresistible.

Inflation is now above 10% and the Bank of England is projecting it will hit 13% in the next few months, tipping the UK into recession. Food prices are rising rapidly in the shops. Who can forget the price of a tub of Lurpak surging above £9 in July?

Ukraine impact felt in the supermarkets

Again, the conflict in Ukraine is having a major impact. Ukraine is a leading exporter of essential commodities such as sunflower oil, grain, maize and wheat. The United Nations has warned global food costs could rise by 20%. The rising price of oil means the cost of moving food around is also much higher, adding to high prices.

Rising costs are also hitting businesses which are in turn facing the dilemma of whether or not to pass the costs onto their customers. Some cafes, bars and restaurants are considering reducing their opening hours to reduce outgoings, according to a study by eEnergy and Censuswide.

And even nipping out for a sandwich in your lunch break is now becoming more expensive. In the last few weeks both Boots and Co-op have hiked the prices of their meal deals. Outside London, Boots has put the price up from £3.39 to £3.59. In London it has gone up from £3.99 to £4.19.

Co-op’s meal deals have jumped in price from £3.50 to £3.75. And the nation’s favourite bakery chain, Greggs, is warning of rises of up to 9% on some products in the coming months.

There is upward pressure on the cost of getting to and from work. Motorists have already seen petrol prices at the pumps rocket. And public transport users face further unpredictability. Train tickets prices rise each January based on the retail price index from the previous July, plus 1%. This means commuters could face 12% fare rises in 2023.

Although still low by historical standards, interest rates are also on the rise. At the time of writing the Bank of England has pushed up rates to 1.75% from 1.25%. Those on fixed-rate mortgages have some protection for the moment. However, the average monthly cost of a tracker mortgage has increased by more than £160 since December 2021.

Simple actions that make a difference 

There are steps people can take to mitigate some of their daily outgoings. Sharing car journeys into work with colleagues could make a significant difference to fuel costs. As could using park and ride schemes. And although grocery prices are rising, taking your own lunch into work will always be cheaper than buying a sandwich.

And many coffee shops run loyalty schemes where you get a free hot drink after your card’s been stamped so many times, or a reduced price if you use a reusable cup. These smaller benefits can make a difference over time.

There are also things employers can do. There is an increasing number of businesses which are being pro-active. According to the Living Wage Foundation, 10,000 employers in the UK have now committed to paying the Real Living Wage. At £9.90 for most of the country and £11.05 in London, this is higher than the mandated National Minimum Wage.

In recent weeks there have been multiple reports of companies pledging one-off financial payments to help their people deal with the cost of living. One of those is Love2shop, which has offered a payment to all of its employees.

And the company is doing its bit for the wider community by partnering with digital payment business PayPoint. This agreement will see both parties expand their product range to provide local authorities with a new way of servicing the most financially at-risk people.

Employers can do their bit to help

Love2shop is also working with businesses across the country to help them offer real financial rewards and incentives through its Love2shop gifting products. Given the broad range of retailers available on Love2shop, it allows employers to meaningfully contribute to their employees’ cost of living dilemmas if that’s how they choose to spend their gift cards.

As well as the ‘treat’ opportunities with a Love2shop Gift Card, it’s also accepted by more than 150 leading UK consumer brands including Sainsbury’s, Argos, Tesco, Wilko, Iceland, Matalan, New Look, and Argos. So people can choose to buy everyday essentials or for those little luxuries.

With the new school year about to start, a multi-retailer gift card could offer great savings on the price of school uniforms or other essential items such as school shoes or a PE kit.

This is also the time of year when we start thinking about Christmas. People could use their gift card to get a head-start and buy gifts in advance, taking away some of the stress normally felt in November and December.

Some employers may be able to negotiate cheaper corporate discounts with local car parks to reduce parking costs, or allow more people to work from home when practical – if the costs don’t outweigh the costs of going to work considering the rising fuel costs come winter.

There are tough times ahead but employers can make a big difference to the lives of their employees for a modest outlay.

If you can see how Love2shop reward and recognition products could help your business, contact our business team today. Email [email protected] or call  0344 375 0739.

Read our previous blogs…

What is customer acquisition

What is Customer Acquisition?

50 Employee Perks

50 Employee Perks to Offer Staff

What is customer acquisition

Customer Acquisition Strategy

Why incentives are key to brand loyalty

/in , , , , , , , /by

Why incentives are key to brand loyalty

After two years of COVID turmoil businesses across the UK are now grappling with the cost of living crisis that is ushering in a period of extreme caution among customers.

With inflation at a 40-year high, consumer confidence is falling rapidly. Even if people have money in the form of savings they are now more reluctant to spend. They fear soaring prices for energy and food will put the squeeze on their spending capacity for the foreseeable future.

GfK’s latest Consumer Confidence Index reported confidence was now at an historic low. Data based on interviews with 2,000 adults in July showed the worsening economic situation was “darkening the mood” of the nation.

This fear and caution is mirrored in the B2B market where businesses are being much careful about their spending with other businesses. An index from NatWest looking at business activity across the UK recorded the lowest reading in six months in July.

Retailers are facing a more permanent shift in market dynamics. A move away from high street shops to e-commerce during the pandemic has swung back the other way. E-commerce market share peaked at 37.4% in February 2020 but has now fallen back to 25.3%.

However, research published by global professional services firm, Alvarez & Marsal, reveals an estimated 17.2m UK consumers plan to make permanent changes to the way they shop.

Whether your customers are consumers, or other businesses, the message is clear: you are now in a fiercely competitive trading environment.

People and businesses will still have to spend money, of course, but now more than ever they are looking for that extra bit of value. Extra incentives can make all the difference when decisions about major supply contracts are made.

Putting together the right package

So in this tougher period what can brands do to keep people and other businesses coming back and spending? What is the key to customer loyalty?

Economists across the world swear by the same four-word phrase – ‘people respond to incentives’. Some are more obvious than others. Offering the right product, available quickly, and at the right price is one of the basics.

What must also be remembered is that all buying – online or on the high street, personal or business – is an experience. Make the experience a frustrating or unpleasant one and people will take their business literally, and virtually, across the street.

Social media has put more pressure on brands to deliver both the product/service and the experience. Pity the poor souls in charge of the big brand Twitter accounts when the ‘my nan is 85 and you have treated her appallingly’ tweets arrive on their timelines.

So let’s say you have got the basics right. The stuff is all in stock, the price is low or competitive, smiling staff are ready and eager to cater for the customers’ every whim. If that is the baseline what extra value can you offer over and above?

What do the customers tell us?

Love2shop is working with businesses across a whole range of sectors to help them improve customer engagement and, in turn, retain customers in a challenging environment. Love2shop offer a number of solutions that will incentivise customers to keep coming back time and time again.

In a major survey carried out by Love2shop, 13,000 people were asked about what they thought were the best rewards when it came to brand loyalty or moving to a new supplier. The results were no surprise. They revealed people love choice and they love gift cards.

It ran two polls across two months asking people to pick their ideal loyalty prize, and their ideal sign-up gift from a selection of popular rewards. Both showed a big preference for multi-retailer gift cards and discounts, with the former by far the most popular.

In fact, a whopping 76.6% of respondents said it was their favourite option. This was followed by 13% for discount on their next purchase with VIP experiences, upgraded memberships and merchandise all scoring in single digits. Read more about the poll on the original blog.

This explains the popularity of the Love2shop rewards and the Love2shop Engagement Platform offered by Love2shop to reward and incentivise both staff and customers.

Love2shop rewards can be used in around 150 retailers, including well-known brands such as Marks & Spencer, Wilko, Iceland, Matalan, Argos, Costa, Harvester, Tui and Jet2Holidays and many, many more.

For customers or employees, Love2shop rewards can offer a treat, or it can be invaluable for life’s essentials such as food and even school uniforms. When money is tight it can make all the difference to people.

Hard data shows incentives do work

Brakes is the UK’s number one wholesaler to the hospitality trade. It also offers food delivery services direct to consumers. In 2021 it forged what proved to be a hugely successful partnership with Love2shop.

Utilising both the expertise of the Love2shop team and the engagement platform technology, the Brakes ‘Help for Hospitality’ campaign was created and launched. The reward programme, delivered through the platform, offered Brakes customers a blend of discounts, cashback, charitable opportunities and Love2shop rewards.

Added to that, Love2shop provided strategic, technical, creative, and software support for the campaign. Love2shop provided the software to deliver cashback and also the Love2shop rewards to Brakes customers.

At that time, the UK was still only slowly emerging from the final pandemic lockdown. In this context the outcome of the collaboration was spectacular. It delivered what was described as “exceptional” growth.

During the five months of this specific campaign Brakes reported that 7.5% of sales came from new categories and products. Additionally, 20% of Brakes customers engaged in the Help for Hospitality. It generated more than 60% of Brakes’ sales revenue during the promoted period.

Help for Hospitality’s success was recognised when it picked up Best Channel Partner Programme at the 2021 Incentive Awards. This annual event recognises excellence in the reward, incentive, and loyalty industry.

Adam Heywood, Head of Commercial Marketing at Brakes, said: “The Love2shop team did a phenomenal job with the Help for Hospitality campaign.

“We’re incredibly proud to see that valuable work recognised by the Incentive Awards. I’d like to congratulate both our team here at Brakes and thank Love2shop for all their support.”

People do indeed ‘respond to incentives’. The data on that is irresistible. It is food for thought for those businesses selling directly to the public and those trading with other businesses. Increasingly, offering extra value to your customers is no longer just optional.

If you can see how Love2shop reward and recognition products could help your business, contact our business team today. Email [email protected] or call  0344 375 0739.

Read our previous blogs…

What is customer acquisition

What is Customer Acquisition?

50 Employee Perks

50 Employee Perks to Offer Staff

What is customer acquisition

Customer Acquisition Strategy

Managing mental health in work and in private time

/in , , , /by

You’d have to be living on the moon not to know we are in the midst of a cost of living crisis.

Mass media have been transformational in so many ways. However, during periods when the news appears consistently bad, being always ‘in the know’ can feel like a curse rather than a blessing.

We had the financial crash, austerity, Brexit and then COVID-19. Then just as we emerge blinking from the pandemic, life throws us another curveball in the shape of rising energy, fuel and food prices.

People have a tendency to aggregate their worries and then project them forward. You may say, “I might be doing okay financially right now, but what will the situation be in six months’ time?”

This is what psychologists call ‘anticipatory anxiety’ – the fear of something before it even happens. It is a common phenomenon for many people on Sunday evenings. Our relaxed weekend feeling melts away as the working week appears on the horizon.

Mary Spillane, psychologist and mental health expert for the Headspace app, calls this the ‘Sunday scaries’. She explained: “Your brain can become conditioned to worry on a Sunday night, even if you don’t have a particularly stressful week.”

The annual cost of stress-related absence to UK business is £30bn

A general rise in anticipatory anxiety has been noted as people have returned to the office post-pandemic. Worries about rising costs are now adding to this. We might like nice surprises but we generally have a fear and anxiety about the unknown and what lies ahead.

For the most forward-thinking businesses, focusing on mental health in the workplace is no longer optional. They know that looking after the wellbeing of their people isn’t just the right thing to do, it makes sense from a business and productivity point of view.

Poor mental health among the workforce is a cost burden to business. It leads to more absence and poor performance. A happier and motivated team is a more productive one. The annual cost of stress-related absence to UK employers is approaching £30bn. Why would any employer not want to fix that?

No magic wands but there are solutions

Of course, business owners and managers do not possess magic wands. We all lead complex lives with multiple challenges. If one of your employees has financial worries, and another is dealing with a relationship break-up, or a family illness, you cannot magic away those problems.

Right now, the cost of living is rising. People are worried about paying their rent or mortgage, heating their home as winter approaches, filling up their car and putting food on the table. And they will be experiencing anticipatory anxiety about the months ahead.

Money worries are strongly associated with mental health issues. Data from the Money and Mental Health Policy Institute reveals that in England alone, more than 1.5m people are experiencing both debt and mental health problems.

Its research found that almost half the people with problem debt are significantly more likely to experience mental health problems.

Those worries don’t disappear when people walk through the office door each morning. They can’t just put them on the coat hanger and forget about them. Mental health isn’t binary. People’s moods, anxieties and stress will ebb and flow. It is about how we manage them both collectively and individually.

Creating a positive culture and letting them know ‘you know’

Creating a working environment that feels welcoming, friendly, encouraging and positive creates a place where people feel valued and rewarded. You can also make a practical difference to people’s financial circumstances. Love2shop works with clients across multiple sectors to enable them to offer rewards and incentives.

There are all sorts of ways to help people plan for the future and alleviate some of that anticipatory anxiety. We’ve covered some immediate, easily accessible and affordable ones. People often feel less anxious when feeling like they have some measure of control and that’s only ever going to be a positive variable to influence when it comes to employee retention, attraction and productivity.

If you would like to discuss how Love2shop’s reward and recognition can work for your business, please email [email protected].

Read our previous blogs…

What is customer acquisition

What is Customer Acquisition?

50 Employee Perks

50 Employee Perks to Offer Staff

What is customer acquisition

Customer Acquisition Strategy

Cost of living crisis hits consumer and business

/in , , , , /by

Cost of living crisis hits consumer and businesses 

We live and work in an integrated global economy. We enjoy the good times together and we all take a hit when the storm clouds gather. 

COVID-19, Brexit and conflict in Ukraine combined to create a perfect storm for both businesses and consumers. UK inflation stands at 9.4%, a 40-year high, and a cost of living crisis is upon us. 

This is often framed in the context of individuals. People struggling to heat their homes, pay rent and mortgages, buy food, fill their car with petrol and afford childcare. 

And this is also a crisis for business. This was summed up in June by Martin McTague, chair of the Federation of Small Businesses (FSB), who said: “The cost of living crisis starts with a cost of doing business crisis”. 

SMEs drive our economy  

Around 99% of businesses in the UK are SMEs (small and medium-sized enterprises) and there are 5.6m of them. They employ more than 16m people, 61% of the workforce. Their contribution to the national economy exceeds £200bn. 

According to the FSB, more than 400,000 SMEs disappeared during COVID lockdowns. Those that survived were just starting to put their heads above the parapet. Now they face fresh challenges. 

So-called producer price inflation, which includes input prices for firms, is up 22.1% over 12 months. Energy prices are soaring as are prices of raw materials. Supply chain constraints, made worse by Brexit, mean goods and raw materials are harder to get. 

A fifth of firms say input costs are their main concern, reports the FSB. It adds that many employers are struggling with labour and skills shortages. This was backed up by the Bank of England in July. It revealed two-thirds of companies were finding it “much harder” to recruit the right people. This further sends costs rising. 

Passing on the costs 

Higher costs, as well as hitting profits and investment, are eventually passed on to consumers. This pushes up inflation. Families face higher prices for essential and non-essential goods. Petrol prices and energy costs are soaring. 

And while people working from home may be able to reduce the cost of travelling to and from work, spending longer periods at home will push up their energy bills. 

The Bank of England will raise interest rates to combat rising inflation. This sparks a higher cost of borrowing for mortgage payers. It also means higher rents for those unable to get onto the housing ladder.  

However, people are finding they do have increasing leverage in the job market. And there is growing evidence they are prepared to use it. 

Workplace sees a seismic shift 

With labour demand outstripping supply, companies are offering higher salaries and more flexibility. COVID prompted a massive shift in the way we work. Post-COVID people are returning to their workplaces. However, millions still work from home either full or part-time. 

One recruitment consultant said earlier this year: “Prospective employees are looking more carefully at the culture of an organisation. More and more are looking for flexible/hybrid working… In the medium to long-term businesses need to change.” 

This is characterised as the so-called ‘Great Resignation’. It is a phenomenon that saw millions of workers quit their jobs during the pandemic. They left in search of a better quality of life. This exodus hit sectors such as hospitality particularly hard. 

Even before the pandemic, businesses were dealing with growing mental health issues. Stress-related absence costs UK employers £26bn every year, according to one estimate in 2019. 

COVID-19 worsened the problem. Data from Public Health England reveals the proportion of adults aged 18 and above reporting a clinically significant level of psychological distress stood at 20.8% in 2019. By April 2020 this had rocketed to 29.5%. Fewer people are now prepared to suffer stressful environments. 

Some employers respond by throwing money at the problem. They offer higher salaries and other financial incentives. However, smarter organisations recognise this paradigm shift demands a more sophisticated response. 

People want financial rewards but they also want to be valued in their work spaces. And they don’t want their jobs to take over their lives. They want more time with family and friends. Note the number of businesses now experimenting with four-day weeks. 

Value of incentives 

Love2shop reward products are available digitally or as a physical card and appeal to a wide audience. Recipients of the reward products can use them in multiple big-name UK retailers, including Sainsbury’s, Iceland, Heron Foods, ASDA, Primark, Boots, River Island and Argos. Consequently, recipients can use their reward gift for essential items or little luxuries. 

Building and timber supplier, Buildbase, is successfully rolling out a customer loyalty programme with the support of Love2shop. The programme incentivises those in the building and construction sector to spend more with Buildbase and in turn rewards its customers with Love2shop products. 

In hospitality, Love2shop provides an award-winning customer engagement platform. Food and drink supplier, Brakes, generated more than 60% of its revenues from their ‘Help for Hospitality’ programme during the period of the promotion. 

Additionally, in the finance industry, leading insurer, SunLife, uses Love2shop rewards to attract new customers and retain current ones. And in the healthcare sector, Love2shop reward products were used to recognise and reward care home staff during COVID-19. The full case study can be read here.  

Employers are increasingly taking the wellbeing of their people seriously, including financial wellbeing. Discount card schemes are just one way to help employees by alleviating some financial stress, which in turn, assists in overall wellbeing. Love2shop provides its employees with an ‘Everyday Benefits’ discount card, which helps cardholders to save money on day-to-day household expenses. It is also a product that’s proved popular with business too and many clients of Love2shop have implemented the Everyday Benefits card for their own employees.  

We are in the midst of economic turmoil and tough times are ahead. However, when the economic and cultural tectonic plates shift we discover new ways of living and working. Change is unsettling and also liberating. 

‘Our people are our greatest asset’ has been a mantra in the corporate world for two decades. Too often it’s an empty platitude. As we move into a new era, the companies that thrive will be those which make those words a reality. 

If you would like to discuss how Love2shop’s reward and recognition can work for your business, please get in contact.

Read our previous blogs…

What is customer acquisition

What is Customer Acquisition?

50 Employee Perks

50 Employee Perks to Offer Staff

What is customer acquisition

Customer Acquisition Strategy

Turning The ‘Great Resignation’ Into The ‘Great Retention’

/in , , , , , , , , , , /by

The ‘Great Resignation UK’ isn’t a new term that’s emerged in the last few weeks, it’s the worrying, new term that deftly describes the global response of workers to the Covid pandemic, company culture, wage stagnation and ongoing cost of living crisis. It is the précis for: a mass resignation, change of jobs, search for a new way of life, desire for hybrid working, better pay and improved job satisfaction. Welcome to the challenges of 2022…

In the US, it’s called ‘The Big Quit’, with Microsoft Work Trend Index (2021) saying, “With over 40 per cent of the global workforce considering leaving their employer this year, a thoughtful approach to hybrid working will be critical for attracting and retaining diverse talent.” In Germany last summer, over one-third of the country’s companies reported a staff shortage, while the UK reported more than 1 million vacancies were available. So what does this summer look like for the UK’s staff retention?

HR Professionals Are Feeling The Burn

Most professionals working in HR, recruitment, talent acquisition or in sectors affected by the ‘Great Resignation’ will feel the new pressure to understand how to improve their company’s chances to retain and recruit staff.

Love2shop has one of the UK’s best-selling reward and recognition platforms. In the last year, Love2shop has increasingly been approached by a raft of sectors to discuss how their gifting rewards can be used to galvanise remuneration packages to attract new talent (and retain it), or more recently, help recognise the cost of living challenges being faced.

Love2shop Retailers - Iceland John Lewis Argos Heron Foods

Through the enormous choice of retailers and brands on the Love2shop gift products – stretching from luxury ones like John Lewis for a ‘treat’ or essential shopping brands such as Iceland, Argos or Heron Foods – Love2shop can provide ‘something for everyone’. This allows companies to buy in volume but not limit anyone from finding something to suit their needs.

It also reflects well on a company when it allows its employees to choose. When companies reward with an actual product, (think bottles of bubbly or bunch of flowers), it means an essential food shop is out of the question – and that might serve employees better right now. Equally, you never need to know so they can do it with dignity – and gratitude.

Four Million US Workers Have Quit Jobs Since 2021

The gravity of the job situation can’t be over-emphasised; many companies, large and small, face very real challenges to business growth as a direct result of being under-resourced and unable to attract into their industry the right sort of people. In the US, for instance, over four million workers quit their jobs since the post pandemic reset began in 2021. And in some global sectors, the average pay has been forced to sharply rise making smaller companies less able to compete in the recruitment face-off.

Boost Packages And Attract Staff With Reward and Recognition

How do you compete in the smaller pools of talent? Or engage and support your employees? Are there internal conversations exploring how to help them during this cost of living challenge? Now is a good time to make some decisions about quick but meaningful fixes that will retain and engage loyal employees or galvanise monthly income as its value dwindles in the face of our economic situation. And if you do want ‘something for everyone’, please contact our business team – everyone’s a good egg and happy to walk you through ideas.

Read our previous blogs…

What is customer acquisition

What is Customer Acquisition?

50 Employee Perks

50 Employee Perks to Offer Staff

What is customer acquisition

Customer Acquisition Strategy

Revealed: What UK consumers want from their company this Christmas

/in , /by

We asked more than 3,000 UK consumers what kind of gift they wanted from their company this Christmas. It turns out they love gift cards!

The big winner, again, was a gift card to spend in a retailer of their choice, and second place went to time off. Takeaways, Christmas parties, hampers, and a team lunch made up the rest of the pack.

The full results are below:

Christmas rewards poll results:

Which would you most like to receive from your company for Christmas?

Staff Christmas party 7.9%
Christmas hamper 14.8%
Time off work 23.6%
A takeaway 2.3%
Team Christmas lunch 5.5%
A gift card for your choice of retailer 45.8%

Total responses: 3,429*

Reading into the numbers

While gift cards have won the day on the poll, we can’t ignore how well the offer of time off did as well.

A day off work is fundamentally a day where you get to choose what to do. A multi-retailer gift card, or a gift card for a retailer of your choice, is also driven by handing employees the opportunity to make their own choices.

This poll reflects a trend we’ve seen in our other recent surveys, where consumers have told us they want to make their own decisions about what they do. Not just about the gifts they receive from brands, but about their time and their money.

As we’ll point out below, this trend towards gift cards and personal choice is reflected in our other polls around what kind of rewards the public like.

Other recent poll results

The company Christmas gift poll isn’t the only one we conducted recently. We also asked more than 13,000 consumers what their preferred gifts are for staying loyal to a company, and which new customer gifts would prompt them to switch to a new supplier.

On both counts, a gift card was once again the clear winner. You can read more about the results here, but a gift card (with the consumer’s choice of retailer) comfortably came first for both loyalty and acquisition, with a discount on their next bill or purchase bringing up second place.

And even then, the discount comes back to choice. A customer is choosing where their money goes, rather than giving it to their utility supplier or insurance company. They’re empowered to make their own choice about where and when they spend their rewards.

Over to you

If you haven’t set your Christmas staff gifts in stone yet, it’s worth taking a second to reassess your plans.

With Love2shop’s help, you might be able to simplify your Christmas gifts to staff, and maybe even save yourself some money, by switching to a physical or digital gift card.

If you want to talk about it, feel free to get in touch. We’ll be here to talk about Christmas right up until the 24th of December.

*Poll data was gathered from recipients of a Love2shop e-Gift Card in September and October 2021.