Loyalty Blogs

Digital gift cards are offered by many businesses and that might include your as well! This can be a way to reward employees, incentivize partners and pave a way for rewarding the customers as well. Gone is the classic era when physical gift cards carried at most importance, it’s a digitally evolved century where paper-intensive cards aren’t of much use or maybe not taken in consideration to a greater extent.

Why Digital?

Long back traditional gift cards were carrying at most importance as they were the only option available but, by the time things have evolved and the post-pandemic era pushed us towards a digital curriculum. Digital gift cards are a way safer than the traditional ones as you may not have a fear of losing them, they act as a superb alternative to cash and relatively makes purchases much more easier and secure.

Why not to choose Retail Gift Cards?

Companies do offer a retail gift card, but it may not be much favorable for the end users, here’s why-

· Non-Flexible Expiry Options

Many users do not even use the retail cards, the reasons may vary, the most common ones is the forgetfulness, most of the time users forget to carry a car while they shop, sometimes they forget that they even have a card to be redeemed. The users might lose the card somewhere as it is physical, it can easily slip out. Some users might consider that the catalog isn’t carrying a major variety and might skip using the same. The gift card also comes with a specific expiry date which becomes tough to redeem in the specified tenure and once the date is passed, consider your gift card worthless.

· Offering Limited choice

According to a survey by Investopedia, gift cards or ore precisely closed-loop cards like amazon gift cards offer a very limited catalog and can affect your shopping plans as well. How? In case you are looking for a personalize option, a retail gift card can limit the purchasing power as a buyer cannot redeem the same at various places. There is always a lack of a holistic catalog. When we’re talking about a customized rewards solution which is tailored to the requirement of the recipient, it can appeal them to a greater extent and can be better useful later.

· Lack of Support

The users making use of retail gift cards generally have a single point of contact in terms of resolving customer queries. The catalog items are not all the same and carry specific terms and conditions with each one which can later be considered as a barrier both in terms of navigating and contacting in case of any issues. In case you’re offering a retail gift card and not providing customers with the right support it can surely leave you with a bad review and can also deplete the reputation of your loyalty points program.

Why Companies are at loss with a Retail Gift Card?

· Unclaimed Rewards

A survey states that over 25 percent gift cards which are distributed are never used. For instance if you have offered your customers with any specific gift card, may it be a brand or a generic/multi-brand one like amazon and the customers forgets to redeem the same, the money added there will surely be charged by the brand or loyalty solution provider but its of no use to the company which has offered the same. This seems complete loss of money with no customer retention and no gain to the brand as well. Here’s a graph to show how much the leading companies are earning with the unclaimed rewards and considering the same amount to level up their profit charts.

· No DIY

Though nobody notices but DIY is an essential feature which are considered by the marketers, product manager and others in the organization. The loyalty campaigns running through your gift card loyalty program should be running through the admins and should be requiring negligible help from the developer’s side. It greatly saves time and helps the admins in managing the program seamlessly without having a coordination with various teams. Lesser team involvement simply means lesser chaos in the long run.

Why choose a Gift Card Loyalty Program Offering Digital Gift Cards?

Having a gift card solution can be an excellent idea for every business. This can help in creating a wide range of catalog filled in with multiple options, offering digital gift card options can help the brands and users both in growing and flourishing in the long run. Your business having a gift card solution can surely be amongst the most chosen one and can stay as a top priority amongst the cutting-edge competition. Companies can choose personalized gift card options which can delight their customers and cater them with customized options based on their previous purchases or the regular purchasing pattern they have been following.

Final Thoughts

We hope this article served its purpose and now you are well aware why retail gift cards should be lesser considered and the world should shift the focus on digital options more than ever. Choosing personalized gift card options is a great choice for the brands offering a gift card loyalty program exclusively for their customers. What’s the wait for? Get started with the right program and stay at the top of your loyalty game.