YOUGotaGift is encouraging loyalty operators to consider gift cards as an addition to merchandise and cashback rewards. Its July 31, 2023 article argues that a wider choice of brands can help customers find a useful redemption before they accumulate a large points balance.
The company places gift cards at several stages of a customer relationship: an incentive to sign up or make a purchase, a reward for continued engagement and a way to use earned points. It recommends considering how those uses fit the objectives of the program.
Smaller redemptions are a central part of the guide. The company describes allowing customers to use a modest points balance toward a larger purchase, or to redeem for smaller items such as coffee, food or books, where the program supports those options.
Digital delivery is presented as a way to provide the reward without physical distribution and keep it accessible in an app or wallet. The range of available brands gives recipients a choice of products and services rather than one predetermined gift.
YOUGotaGift also highlights redemption data, including popular categories and periods of higher activity, as information operators can use when refining a catalog. These are design recommendations in the 2023 article; it does not report a later 2026 update or quantified retention results.
Sources and documents
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- How Gift Cards Are Reshaping the Loyalty Program Landscape — yougotagift.com