Helping members reach their first redemption quickly should be a priority for loyalty programmes, according to Eric Thiegs, NeoCurrency’s Head of Strategy and Growth. In guidance published on June 4, 2025, he argues that digital gift cards can support that goal through immediate delivery, small denominations and a choice of brands.

The article cites various studies to support the use of gift cards in loyalty programs. For example, 84% of consumers say they prefer receiving digital gift cards in loyalty programs, according to a study by The Strawhecker Group in partnership with Bank of America. Additionally, programs that include gift cards see a higher redemption rate than those that don't, and digital gift cards can be customized for each program and demographic, making them a personalized engagement option.

Thiegs cites Retail Gift Card Association research for the claim that 90% of consumers use gift cards annually. He also says loyalty programmes offering gift cards can see 15–20% faster enrolment growth; the article presents that figure as part of his case for using incentives to attract members.

The article also discusses how digital gift cards can improve member satisfaction and retention. Programs with gift card options usually see higher satisfaction scores, with users calling them 'personalizable' and 'valuable'. Gift cards are also a fantastic way to reward members for milestones and elevate tiered programs. According to Fiserv's Q2 2024 Gift Card Gauge, 85% of consumers are joining loyalty programs, and gift cards are rapidly becoming a key driver of customer loyalty.

Merchant gift cards and prepaid reward options

For programme design, Thiegs recommends combining merchant gift cards with cash-like reward options such as Visa and Mastercard prepaid cards. His suggested mix includes widely recognised retailers as well as niche and regional brands selected for the intended audience.

Thiegs also highlights small rewards of $2–$5 as a way to recognise activity without making members wait for a large redemption. He argues that digital fulfilment can be simpler for administrators than shipping merchandise or arranging travel rewards.