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7 ways digital gift cards can help you supercharge sustainable growth

Posted on 29 March 2023
Read time 4 mins
Author Nicole Stanaland

Digital gift cards have become an increasingly popular and powerful tool for businesses, helping them to supercharge sustainable and profitable growth across new use cases outside of conventional gifting.

Here are just seven ways that digital gift cards can be utilized to supercharge sustainable growth:

1. Customer acquisition

Digital gift cards are a valuable tool for customer acquisition and can be used as a signup incentive to attract new customers to your business.

Unlike traditional gift cards, digital gift cards can be purchased and redeemed online, making them convenient for both the buyer and the recipient. What’s more, they’re easy to track and manage, allowing businesses to gain valuable insights into customer behavior and preferences.


of consumers say they favor companies that offer rewards and incentives


2. Engagement & Account Activation

Digital gift cards can also be an effective tool for customer engagement. By offering personalized and targeted gift cards, businesses can show customers that they understand their preferences and are invested in their experience. 

For example, a fitness center could offer a digital gift card for sports clothing to those who are signed up for the gym but have not been back in a while. This could encourage them to return and re-engage with the business.

Digital gift cards can also be used to boost engagement in other areas of the business, such as incentivizing customers to leave a review or refer their friends. Digital gift cards can be shared instantly, making them more attractive than other types of rewards, and because they’re an entirely digital product, businesses can also track and manage gift card data to improve participation in their engagement strategies.


of consumers say they’re more likely to engage with a brand if it offers an incentive to do so 


3. Upselling

Digital gift cards can also be a tool for upselling products or services. Businesses can use digital gift cards to promote higher-priced items by offering their customers a digital gift card as a reward for purchasing a certain product or spending a certain amount.

When customers return to the store to use their digital gift card, they’re much more likely to spend more than the value of their gift card, bringing more revenue into the business.

Offering gift cards as an upsell incentive not only increase sales but also builds a positive customer experience. 


of consumers admit to spending more than the value of their gift card


customer loyalty

4. Referral programs

Consumers are much more likely to trust a recommendation from a friend or family member than they are an advertisement; making referrals is one of the best ways to grow your business.  By offering digital gift cards to customers who refer friends or family members, businesses can encourage their existing customer base to spread the word and help grow their brand.

Customers referred by other customers have a


higher retention rate


Not only are digital gift cards convenient, but they can also be highly personalized, ensuring that each and every customer is receiving a reward that means something to them. By utilizing a third-party rewards provider, businesses can effortlessly manage and distribute digital rewards and access detailed data analytics that can help them improve their referral programs. 

A referral program that offers incentives and rewards can motivate more than


of users to refer a new customer


5. Customer loyalty programs

Whether stars, points, or gold, gift cards are a popular cash-out reward in customer loyalty programs.

By offering gift cards as a loyalty reward, businesses can strengthen their relationship with their customers and encourage repeat purchases again and again.


of consumers admit to spending more money to maximize loyalty points earnings


To maximize the value of digital gift cards as rewards, businesses can elect to offer customers a choice of redemption options. By giving customers a chance to choose from a range of digital gift card brands, businesses can ensure that each and every one of their customers feels rewarded regardless of their personal preferences.


of US consumers say they’re more loyal to brands that show they understand them on a personal level


6. Employee recognition

Gift cards aren’t just powerful rewards and incentives for customers but for employees too because they offer a flexible and convenient reward that can be customized to fit the needs and preferences of each individual employee.

Gift cards can be used to recognize employee achievements, celebrate milestones, and incentivize good performance and because they can be purchased in bulk with a discount, are also a more cost-effective way to reward employees over cash bonuses.

By using gift cards to recognize and reward employees, businesses can create a positive work environment that promotes well-being and recognition, which ultimately leads to greater employee loyalty.


of Gen Z and Millennial employees said that an increase in recognition rewards would make them more loyal to their employers


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7. Disbursement 

A new emerging use case for gift cards is as a disbursement tool. Digital gift cards offer businesses a convenient and secure way to distribute payments without the need for physical checks or cash. 

In B2C retail, digital gift cards can be utilized for customer refunds, ensuring that new business returns to the store and increasing the chance that customers will spend more than the value of their gift card when making their next purchase.

Digital gift cards can also be used by businesses and the government to disburse funds for a variety of other purposes, including as a means of gifting people payment support during the cost of living crisis. 

During the COVID-19 pandemic, the UK government utilized digital gift cards as a means of delivering the Free School Meals program, helping vulnerable families to feed their children while schools were closed.

During the pandemic


of all UK Free School Meals vouchers were issued by Tillo, helping more than 1.3 million families 


Speak to Tillo and discover new use cases for digital gift cards

By leveraging the benefits of digital gift cards, both B2B and B2C businesses can attract, engage and retain a loyal customer base, boost their sales, find new ways to deliver disbursement, and motivate their employees. 

To learn more about the potential of digital gift cards for your business, get in touch with Tillo today and discover how the Tillo Platform can help connect you to 2000+ of the world's best-loved brands.

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