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FeaturedInsights

Using digital gift cards to build loyalty

YOUGotaGift says they are increasingly being used to provide customers with greater flexibility and choice

There’s nothing like getting a gift card from a brand or retailer you regularly use as a reward for your loyalty. Even better if it’s digital.

That’s what YOUGotaGift has seen anyhow. It has collaborated with more than 50 organisations, including banks, telcos and airlines to provide digital gift cards as redemption options for their loyalty programmes.

Its client portfolio for loyalty programmes has grown by 30 per cent over the past three years.

Some of the businesses that it’s working with include Mastercard, Visa, etisalat by e&, First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Saudi National Bank (SNB), Saudi Awwal Bank (SAB), The Saudi Investment Bank (SAIB) and the National Bank of Kuwait (NBK).

Organisations across the board are using digital gift cards to leverage data and AI to enhance the consumer experience and support the detection and reduction of fraud.

“Digital gift cards also bring logistical advantages, as they eliminate the need for physical distribution, reducing the overall carbon footprint for a greener planet,” said Viji Kannan, Chief Business Officer at YOUGotaGift.

Viji Kannan, Chief Business Officer at YOUGotaGift

Complete elimination of logistics from purchase to delivery results in cost-effectiveness and improved efficiency, as these gift cards can be delivered through email, SMS, and WhatsApp.

Raising awareness

A loyalty programme is a great marketing tool for brands to build stronger customer relationships and encourage repeat purchases of their products or services.

It can help reward and retain loyal customers by offering various incentives and benefits based on their continued engagement.

“In a nutshell, loyalty programmes are used to build a connection or bridge with consumers, making them feel valued and acquiring data about their buying behaviour,” added Kannan.

New loyalty programmes are also being introduced into the market rapidly. According to Research and Markets, the loyalty market in the UAE is expected to reach US$2.23 billion by 2028.

In KSA, it is expected to be valued at US$1.61 billion by 2028.

How do gift cards help loyalty?

Loyalty programmes have traditionally offered rewards in the form of merchandise, cashback, or other traditional operations.

Digital gift cards are increasingly being used to provide customers with greater flexibility and choice. They can enhance existing points programmes by giving customers a wide range of brands to choose from.

“Gift cards can be provided digitally, allowing for better tracking, quicker delivery, and increased security, in addition to an exceptional customer experience while enabling them to earn commercial benefits.

“Customers who feel appreciated and rewarded for their loyalty are more likely to remain loyal to a brand and recommend it to others, which creates a positive brand image and a positive commercial impact on the loyalty programme.”

Measuring redemption rates can show whether customers react to specific incentives and are engaged in a loyalty programme.

Redemption rates can also provide insightful data on the rewards that are performing well, the customer segments utilising them, and other such detailed data on customers’ desires and behaviours.