3 Reasons why Gift Cards should be part of your Loyalty Program

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3 Reasons why Gift Cards should be part of your Loyalty Program

Gift cards and Loyalty programs are often run separately. However, using one to influence the other can lead to an increase in loyalty program participation, brand awareness and engagement.

In a recent study published by UK Gift Card and Voucher Association, 31% of 16-34-year-old shoppers state they have become repeat customers after being given a gift card.

Incorporating your gift card into your loyalty program can be a great way to acquire and nurture these customers, increase customer loyalty and lifelong value for your business.

If you have an existing loyalty program or your considering setting up one these are some of the ways you can use gift cards with your customer loyalty program to attract new customers and nurture them.

Increase Brand Awareness
Branded gift cards are a great way for businesses to spread the word about their business. Gift cards boost brand awareness and drive new customers to your business.

Gift cards can be a referral system as people buy gift cards for friends and family. When business link their gift cards to their loyalty program it becomes a nurturing funnel for customers.

Businesses should introduce their customer loyalty program to their customers and encourage customers to sign up by using offers from their loyalty program with their gift card when they sign up.

Improve sign-up
Promoting gift cards in your business is a great opportunity to educate customers about your customer loyalty program and encourage registration to your loyalty program or vice versa.

Encourage loyalty program members to purchase gift cards for friends and family to help acquire new customers.

Integrated loyalty software allows customers to use multiple gift cards in one transaction giving the customer a great experience with your business. Making gift cards part of your rewards in your loyalty intertwines both and gives a seamless flow directly to your loyalty program.

Drive Sales
Integrating gift cards with a loyalty program means you can offer gift cards as a reward. Offering gift cards as rewards can be a powerful addition to your customer loyalty program.

Gift cards have a higher conversion rate as rewards compared to coupons. Some businesses use them experiential rewards, for instance, give gift cards as birthday presents for their loyalty customers their customer.

Loyalty offers combined with gift cards can be a great way to influence customer spend as customers are more likely to purchase non-utilitarian products and luxury items with incentives.

According to, Omri Dahan, Marqeta, consumers often make larger purchases when using gift cards, apparently prompting customers to buy more than they may have otherwise.

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