Experts Recommend Virtual e-Gift Cards in Loyalty and Incentive Programs
Virtual e-gift cards have become a popular choice for digital rewards in loyalty and incentive programs. According to a market research report by MarketsandMarkets, the global e-gift card market is expected to grow from $6.5 billion in 2019 to $13.5 billion by 2024, at a CAGR of 16.1% during the forecast period. This growth is attributed to the increasing adoption of digital platforms and the growing demand for personalization and convenience in customer engagement.
Virtual e-gift cards offer a number of benefits for businesses looking to implement a digital rewards program. One of the main advantages is that they can be easily distributed and redeemed online. This eliminates the need for physical cards and allows customers to access their rewards quickly and easily. Additionally, e-gift cards can be easily customized and branded, providing businesses with an opportunity to increase brand awareness and customer loyalty.
Another benefit of virtual e-gift cards is that they offer a high degree of flexibility. They can be used for a variety of purposes, such as covering expenses for travel, dining, and shopping, and can be redeemed with a wide range of retailers. This allows businesses to cater to the diverse needs and preferences of their customers. Furthermore, e-gift cards also provide businesses with a cost-effective solution for digital rewards. Unlike physical gift cards, virtual e-gift cards do not require printing or shipping costs, making them a more affordable option. They also offer the ability to track and measure the success of the campaign in real-time, which can help businesses optimize their campaigns as needed.
Research indicates that e-gift cards have been the most popular type of reward among consumers in the US, with 72% of people preferring them over other options such as merchandise, discounts, and travel rewards.
In conclusion, virtual e-gift cards have become a popular choice for digital rewards in loyalty and incentive programs. They offer a number of benefits such as easy distribution, redemption and customization, flexibility, cost-effectiveness, and real-time tracking capabilities. As the digital platforms continue to grow, it is expected that more and more businesses will adopt virtual e-gift cards as a way to engage with their customers and increase brand loyalty.
MarketsandMarkets. (2019). E-Gift Card Market by Application (Retail, Travel, Dining), Format (Virtual, Plastic), and Region – Global Forecast to 2024. [online] Available at: https://www.marketsandmarkets.com/Market-Reports/e-gift-card-market-828.html [Accessed 15 Jan. 2021].