Loyalty Blogs

Change is the only constant. There’s a massive change in how new-age customers perceive gifting. Gifting culture is nowhere near saturation but has evolved with time. From gifting physical gifts to shifting to online gift cards, one thing that has remained unchanged is the spirit of gifting.   

The online gift card market is huge, and the prospects are lucrative for businesses that want to use it as a means of customer retention. As per a recent report, the global gift card market is supposed to reach $4183.9 billion by 2032, growing at a CAGR of 17.7% from 2023 to 2032.  

This blog will take a detailed take on the gift card loyalty program and acknowledge its utility in customer retention.   

What are Online Gift Cards?  

Gone are the days for finding physical gift cards on a rack at the store. Online gift cards have started a digital evolution, tailored for a tech-savvy generation. These virtual gift cards are easy to purchase and even easier to gift. In some simple clicks, customers can buy gift cards from their desired retailers, personalize them with a message, and send them using an email or message.  

Forgot a friend’s birthday? Not an issue; make your selection and have an eGift card delivered in minutes. If you would like to acknowledge a coworker for a job well done, an eGift card can be described as a powerful and practical tool of appreciation. When you are purchasing a gift for someone, and you really don’t know their preferences, an eGift card can come in handy.  

Utility of Online Gift Cards  

Online gift cards, or eGift cards, are very versatile products that are characterized by certain dynamism. It is for these reasons that they can be used personally as well as in the business environment to foster friendly relations, support advertising campaigns, express gratitude, encourage action, and thank people for their loyalty.  

1. Gift Card Loyalty Programs  

Rewarding Repeat Business: Online gift cards can be used to reward customers for their great purchase frequency. Such customers can be rewarded with digital gift cards for regular purchases or as a part of the point system.  

Boosting Referrals: A beauty brand, for instance, might incentivize customers to invite friends by offering eGift cards. It also goes a long way in rewarding customer loyalty while targeting new customers.  

2. Employee Recognition  

Celebrating Achievements and Milestones: Awards such as eGift cards can replace trophies and motivate the employees by acknowledging achievements. Gift card loyalty programs are valuable for work anniversaries, completion of projects, and other milestones.  

Fostering Team Spirit: Businesses can use eGift cards particularly to encourage the employees on project completion and foster team spirit.  

3. Channel Partner Incentives  

Strengthening Business Relationships: eGift cards can be motivating for channel partners and lead to better partner relationships. Gift cards can be given to partners for achieving sales goals, performance, and other work results; it is a way to express gratitude and contribute to the development of beneficial collaboration.  

4. Account-Based Marketing (ABM)  

Personalized Gifting to Key Accounts: Specifically, in ABM, eGift cards can create additional possibilities for communication with the key accounts within the framework of gifting. Targeting the specific areas of decision makers would help establish a good image of the company’s gift cards and build goodwill.   

Boosting Brand Recall: For example, a marketing firm might send a personalized Starbucks eGift card to a potential client who loves coffee. This thoughtful gesture initiates a conversation and leaves a lasting impression.  

5. Client Appreciation  

Expressing Gratitude and Fostering Loyalty: Clients love to be appreciated, and thus eGift cards are the best way of letting the clients know that they are valued. Personalizing such gifts also helps nurture relations with clients and thereby helps develop long-term business relations.  

Why are Online Gift Cards Perfect Loyalty Reward?   

Many brands have realized the power of gift card loyalty programs and how they can amplify the results by investing in enterprise loyalty software. For businesses that are still considering the online gift card loyalty program for their business, here are some facts to consolidate their decision.  

• Flexibility Personified 

Gift cards can be sent to businesses of various categories and types: online and physical, allowing the receiver to pick something useful or desired. They are widely accepted.  

Besides, most of the gift cards come with choices of adding a message and the design to make the reward look more unique and personal.  

• Ease of Distribution  

Digital gift cards can be delivered through an email or a text message; hence, they can be used as incentives that are satisfying to both the businesses and the recipient since no shipping is required.  

Moreover, they can be easily incorporated in the current loyalty schemes and can certainly be ranked and rolled out depending on circulation patterns that correspond to specific customer behaviors.  

• Enhanced Customer Engagement  

Getting more by spending less is always appealing to customers’ mindsets, and since the gift card has been issued, the customer is likely to spend more than the amount while buying the product, hence promoting more sales for the business.  

The idea of having gift cards for loyalty points when the customers make a purchase within the store increases the likelihood of the customers visiting the store more often.  

• Increased Brand Loyalty  

Gift cards are one of the favorite promotional tools because they make customers feel valued and well-rewarded. Those who get gift cards will remain satisfied customers, which in the long run will become brand advocates, which will build the image of the brand.  

• Cost-Effective and Scalable  

Businesses can easily manage their expenditure on loyalty programs by fixating on the kind of gift cards that will be offered as well as the circumstances under which they shall be issued.  

Since gift cards can be easily customized, the size of the business and number of customers to be targeted stay in the hands of a business. This flexibility makes gift cards a viable option for small to medium-sized businesses.  

Trust an Experienced Loyalty Partner for Gift Card Expertise  

Working with an expert loyalty management platform is important to execute an online gift card loyalty program effectively. Investing in online gift cards is not only about customer retention and satisfaction. For a brand, these tangible results must be reflected in revenue as well.  

Novus Loyalty is a leading loyalty management platform, helping businesses design the most relevant loyalty software solution to implement effective loyalty programs. We have helped brands maximize their ROI and achieve their loyalty objectives with robust online gift card loyalty.  

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