Your members are interacting with your loyalty program digitally. They’ve looked up their account balance on a mobile device and redeemed for rewards online. They crave convenience and appreciate instant gratification. Digital aka e-gift cards are a great solution that meet both needs. 

To help get you started, we’ve outlined five tips to consider when adding digital gift cards as rewards option to your rewards program. If you already have gift cards, use these tips to get more out of your program:

  1. 1. Pricing – Most gift cards can be purchased for less than face value. Find out if your gift card supplier is getting a discount and how much of the discount they are sharing with you. The discounts usually range from 2-20%. As expected, more popular gift cards, like Amazon, and open loop cards that can be used anywhere, like American Express, offer smaller discounts than closed loop cards which can only be used at the issuing retailer. 

Related: Gift Card Case Study

  1. 2. Fulfillment – How quickly will the e-gift card be issued? Understand what the process and timeline is for fulfillment. Your members likely expect instant access to a digital gift card - whether through email or a code. Set your members’ expectations for when they can expect to receive the gift card before they start the redemption process.
  2. 3. Variety – Ensure there is a variety of gift cards that cover your members’ interests. Variety is more than just volume of retailer options. It also includes a range of denominations. Offering lower dollar values like $10 & $15 will give you another lever to engage your members with less points. Lastly, Suppliers often have an overwhelming selection of gift cards. Rather than flood your members with options to make your catalogue seem bigger, take the time to curate a selection that balances your members’ interests and offers you the best margins.

 Related: How to Curate a Kick-Ass Rewards Catalog

  1. 4. Tracking and reporting – Due to the varying pricing for different cards, tracking how much gift card redemptions cost you can be complicated. Look for a supplier that can offer you real-time reporting on your redemptions so you can track how much you have spent, which cards are the most popular and other key metrics like cost per point.
  2. 5. Supplier – Explore both gift card-only vendors and full service rewards suppliers. Find out who can give you the best pricing, fulfillment options, variety and reporting that fits your needs. A robust rewards technology should be able to integrate with whomever you choose to work with.

Gift cards are an effective and efficient way to give your members more redemption options with high perceived value that also helps to manage your program costs.

Looking for digital gift cards to excite your members? Contact us to learn more about our variety of favorably priced and easily tracked digital gift card options.

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