Companies that incorporate gift cards in their incentive programs are seeing extraordinary results. They are finding fresh technological solutions that help administer their programs and decrease capital costs.
There are countless of reasons why gift cards are an effective motivator. In the US, gift cards are well-understood and the number one gifted product. Why? It is convenient, simple and quick. It is a hassle-free way to get access to a variety of products and experiences. They can easily choose from the brands available and then go to the merchant’s stores to redeem anything they like. They can easily fulfill all kinds of experiences such as hotel, airline, restaurants and countless more.
On top of that, digital gift cards have been gaining popularity. Adding a digital gift card options adds immediacy to the reward that is highly desirable to customers. In the past, they have been difficult to redeem especially at restaurants. However, with the advancement of technology in recent times, these issues have been addressed effectively.
Mobile wallets and digital gift card redemption in retail stores and restaurants are increasing rapidly. This is inspiring other merchants to invest in their own digital offering. New technology partners are replacing self-management. These incentive companies used to source, manage and buy physical gift cards in bulk upfront to meet demand. It was not very cost-effective as it tied up a large amount of capital and needless to say, space that was secure.
The problem with that was orders for new cards were frequent but they could not keep up with the pace. It was very costly and time consuming. Most importantly, it reduced redemption options because the end-user would receive their reward only a few weeks later. Just imagine redeeming an IDR10,000,000 award and receiving 20 IDR 500,000 physical gift cards three weeks later. Recipients would just end up feeling annoyed and impatient.
This was how the rise of digital companies who integrate and build delivery technology started. These companies negotiated a rate, based on their overall volume and past these discounts onto their clients. How? Well, they offer gift cards to clients “on tap”, which means they only need to pay for what they use. By making use of a technology provider, incentive firms get access to an array of brands while outsourcing the technical components of running a gift cards program such as delivery, activation, merchant relations and payment. It works for them because they do not need to sweat the small, medium or big things.
Gift Card Indonesia (www.giftcard.co.id) is the leading gift card and loyalty company. We provide end-to-end services in loyalty and gift card industries, including gift card processing and distribution through our corporate sales and retail partners. We are the one stop solution for innovative gifting.
We go beyond rewards. We build loyalty.