Rewards space is still majorly dominated by gift cards

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Amidst high inflation and increasing gas prices, consumers always spend judiciously and therefore rewards play a very important role in today’s time. Reward programs always entice the customers to spend more and, at the same time, attract more customers, and gift cards have proved to be an important strategy for several businesses. The report from Blackhawk Network indicated that more than 90% of gift card recipients end up spending more than the card amount. 

Amongst all the available options, gift cards remain one of the topmost priorities for individuals from employers, retailers, etc.; therefore, gift card providers continue entering B2B partnerships to gain market share. For instance,

• In September 2022, one of the key gift card providers, Blackhawk Network, announced to launch B2B gift card program for employee rewards and customer incentives. Notably, the gift card platform partnered with fashion and home design company H&M to introduce the company’s B2B gift card program, where organizations can purchase H&M gift cards to retain their employees or customers over the long run.

In the United States, B2B gift cards represent more than 20% of the total gift card market, as per Mercator’s data. Moreover, these gift card programs are allowing merchants to generate significant revenue; thus, merchants are investing in these programs to make their operations more efficient. H&M also adopted this B2B gift card strategy to acquire more customers over the long run. Here, Blackhawk’s SaaS-enabled platform has particularly been very helpful as it helps address the loopholes that the merchants see, together with advanced tech solutions to scale up the business over the next four to six quarters in the country.

Blackhawk specifically chose H&M to grow its presence in the B2B gift card space since it is a very popular lifestyle brand. On the other hand, this will enable several organizations to retain their customers by offering H&M gift cards. These H&M gift cards do not get expired and are redeemable at several H&M locations. PayNXT360 expects that these B2B gift cards will enable several businesses to retain their customers, reward their employees, and even raise funds for a particular cause.

On the other hand, several gift card platforms are launching innovative multi-brand digital gift cards for consumers, businesses, and strategic partners. For instance,

• In September 2022, a MENA region-based digital gift card marketplace, YouGotaGift, launched a unique multi-brand eGift Card called HappyYOÜ which can be redeemed at their partner brands in the region. Specifically, this super gift card enables customers to redeem their cards from the platform’s list of partners in the UAE, Qatar, KSA, Bahrain, Kuwait, Oman, and Egypt. Apart from this, HappyYOÜ also provide the customers additional incentives, thus attracting more customers as they will feel valued.

YouGotaGift, which provides business solutions through incentives and commerce, always focuses on innovative customer-centric products. Consequently, this platform has attracted several businesses with its inch-wide mile deep strategy to help them deliver additional value to their customers. In the multi-brand gift card, the platform will make the customers feel more engaged as they can unlock several offers and buy from their favorite brands in these countries.

Notably, the platform attracted several loyal clients, namely, the Joyalukkas group, which collaborated with YouGotaGift, to receive additional benefits while redeeming their gift cards. It is worth mentioning that post collaboration, the Joyalukkas group saw an increase in sales during and after the promotion. This redemption process of the platform has been effective in driving sales as more customers get engaged with the brands. The marketing integration of the platform exhibited the potential effectiveness of its marketing strategy and successfully helped Joyalukkas acquire customers.

YouGotaGift had around 700 integrated brands across the region, making it one of the most gift card marketplaces with an array of choices and flexibility. This new launch aims to revolutionize the gifting business as it benefits businesses by providing wider choices and convenience. 

Digital rewards and incentives platforms that support rewards such as retail gift cards and prepaid cards have seen significant half-yearly growth in 2022. For instance,

• In August 2022, WeGift, digital rewards and incentives platform, achieved significant growth in the first half of 2022 and acquired more than 120 brands. 

WeGift has worked with brands such as Airbnb, Nike, Instacart, and many more and most importantly, it is the first and only gift-card platform to partner with these brands. Here it is worth mentioning that WeGift’s catalog offers unique rewards and incentives that provide value to the recipient, and therefore, it is seeing substantial growth in its business.

WeGift, an API-enabled platform, has helped clients save administrative time and reduce costs, whether they are using it to reward high performers, drive customer loyalty, or disburse funds. Consequently, all types of organizations are entering into partnerships with WeGift to provide rewards through their platforms. WishList, ThanksBen, Xoxoday, and Wonde are the several clients who joined the platform this year.

To know more and gain a deeper understanding of the global gift card market, click here.