AllStar has questioned whether gift cards always meet the objectives of a corporate recognition program, while acknowledging the operational reasons employers and customer incentive sponsors choose them.

In commentary published on October 19, 2020, the company cited ease of administration, broad audience appeal and flexible redemption as leading reasons organizations use gift card rewards.

AllStar’s counterargument focused on the recipient experience. It suggested that a gift card spent on routine purchases, or redeemed long after the award, may leave a weaker association with the sponsoring company than an item selected for the recipient.

The provider favored branded merchandise, arguing that a physical award can be remembered, displayed or discussed with others. It also described choosing product brands that reflect the sponsor’s own positioning and administering selection and fulfillment online.

The article presents a merchandise-oriented provider’s perspective on reward design. Its useful distinction for corporate buyers is between operational convenience and the recognition experience they want to create: gift card flexibility is one consideration, while presentation, timing and audience preferences also shape the choice.