We are often asked this question by our loyalty program clients: “How do we choose the right rewards?” A perfectly valid and important question, especially considering that there are so many reward types (promotional offers, discounts, merchandise, gift cards, and downloads), it is difficult to determine what rewards to offer. Keep in mind, it is not about choosing rewards, but choosing the right rewards for your program and your members.
Typically, rewards that generate excitement and have a low cost to redeem perform incredibly well. One type of reward that consistently performs well and that resonates with members is gift cards. Gift cards tend to work well within programs for numerous reasons. For one, gift cards enable people to indulge in something that they would not have necessarily purchased or save towards one. Consumers will also put in additional effort to earn a reward they perceive as a luxury item. Most customers will exert more effort for gift cards from brands they love.
Everyone likes getting a gift card, whether as a gift or something that was earned in the midsts of loyalty program. It is essentially free money to spend on something one probably would not have purchased otherwise. This ultimately leads to a positive experience that customer undoubtedly remember and tell their friends about, making gift cards a great addition to any reward catalog.