Did you know the global gift card industry was worth $835.2 billion in 2022 and is estimated to reach $4.2 trillion in 2032? This growth comes from the soaring demand for digital gifting and the gradual shift from tangible gifts to experiences. Also, gift cards are a hassle-free and convenient way to buy a gift for a loved one, whether family, friend, or coworker.
In the corporate world, gift cards are increasingly gaining traction. Businesses use them for employees, customers, partners, affiliates, or other parties driving business success. Among the biggest reasons why businesses use gift cards is their flexibility. Your business determines the amount to give, and the recipient has the freedom to choose what to buy.
What is a Corporate Gift Card?
It is a prepaid card that you preload with a specific amount of money, and the recipient can use it to pay for goods or services at websites, stores, and restaurants accepting the card. Businesses, both retail and B2B, use gift cards to accomplish business objectives and attain a competitive edge over rivals. Some enterprises opt for a reloadable visa card to streamline their incentive and loyalty programs.
You may wonder when your business should issue a corporate gift card. First, you can use it as an incentive or recognition initiative whereby you acknowledge and celebrate good performance. For instance, if an employee hits their quarterly target or attains KPIs, you can offer a gift card. Similarly, you can recognize loyal clients and urge them to continue doing business with you.
Second, a gift card can be used to celebrate employee milestones and appreciate their effort in your company. You can use it during momentous occasions like onboarding, job promotion, work anniversary, and retirement. The gift card program should resonate with your industry, business model, and company values for optimal outcomes.
Corporate Gift Cards Vs. Traditional Tangible Gifts
The debate on whether to give physical gifts or monetary rewards is centuries old. While the best one depends on the relationship between the giver and recipient and the unique gifting situation, gift cards are preferable for numerous reasons.
1. Less Disappointment and Waste
In the past, tangible gifts were the norm. Businesses would gift customers and employees a wide range of products such as pens, keychains, pop sockets, calendars, and laptop cases, to name a few. While such goodies are desirable, the recipient may be disappointed if that’s not what they expected or if the gift does suit their personal tastes. At times, the recipient never uses the gift.
Fortunately, corporate gift cards eliminate all the disappointment and wastage of physical gifts. The recipient gets more flexibility in determining what to buy and when. Also, if the recipient does not use the gift card for whichever reason, it does not go to waste and come back to your company as profit.
2. Develop Relationships
Gift cards are excellent relationship builders. Whether you want to develop a relationship with repeat customers, valued employees, or trustworthy vendors, gift cards are ideal and show thoughtful effort. In addition, you can combine corporate gift cards with reward programs, offering clients who spend more than a stipulated amount or use them to settle disputes.
3. Safe and Convenient
Thanks to technological advances, corporate gift cards are safer and more convenient. Unlike traditional paper gift certificates that can be lost, stolen, or duplicated, modern e-gift cards are secure and can be used online and in-store.
Many businesses prefer gift cards because they are easy to track. A business can integrate the gift card into its sales system to monitor gift card transactions and gain insights into customer behavior. You can determine the gift cards that customers have redeemed and what they redeemed for to inform further gifting endeavors.
5. Increase Brand Awareness
You can have your corporate gift card designed to reflect your brand. Subsequently, the gift card becomes a marketing tool that displays your business, its offerings, and values everywhere it is used.
Customers tend to share their brand experiences with friends and family. After receiving a gift card, your customers will likely tell their contacts, creating awareness about your business. Friends and family may want to try your business to get gift cards in the future.
Benefits of Corporate Gift Cards
Typically, employees feel good when they receive gift cards from their employers. Here are more reasons to give your employees gift cards.
- Increase job morale, motivation, and satisfaction
- Enhance health and wellbeing
- Create social connection
- Enhance productivity and retention
- Give the workplace a human touch
- Stimulate gratitude
In a nutshell, customers are the lifeblood of your business. As such, offering them corporate gift cards
- Increase customer satisfaction
- Create brand ambassadors
- Boost loyalty and retention
- Establish trust and develop a good reputation
Although gift cards come at a cost for businesses, they have a broad range of benefits.
- Offer cost-efficient advertising
- Promote employee and customer engagement
- Increase traffic
- Generate useful data
- Boost revenue –two out of three consumers use 38% more than the card value
- Increase competitiveness
Gift giving can be stressful for business; you don’t want to give gifts that are too personal or common or lifeless and neutral.
Corporate gift cards are handy, offering a flexible, safe, and cost-effective way to appreciate clients, employees, and business associates. Unwrap the potential of corporate gift cards for your business today!