There are a growing number of use cases for digital gift cards in the fintech space, from cashback to financial payouts, and affiliate and loyalty programmes. There are even a number of digital gift card use cases for crypto, including to drive loyalty and for users to cash out currency to their favourite brand.
Loyalty programmes are becoming essential to help fintechs retain customers for longer, incentivise new customers, build their reputation, outshine the competition, and drive increased spend. And digital gift cards are one of the most effective ways to reward customers; they provide a greater delight factor than cash. In fact, according to Shopify 68% of consumers expressed that gift cards are their preferred type of incentive over coupons and bonus bucks.
Gift cards have the flexibility of cash and the benefits of merchandise (they feel like a gift or treat) – giving users choice over what they spend on. To be successful, loyalty programmes will need to leverage customer data to be more personalised and relevant, delivering a superior customer experience regardless of channel.
So what can we learn from digital gift card sales?
The UK gift card market was worth just under £7 billion in 2019 and continues to grow at pace – and the digital gift card industry is continually evolving – with the last three years expediting this change. At the GCVA conference this month (the industry’s flagship conference of the year), the outlook for the industry was overwhelmingly positive as members shared stories of resilience and rebounding growth coming out of the pandemic.
This was certainly true for Tillo, with a 117% increase in FVS between 2019 and 2021.
As the largest digital gift card aggregator in the UK, Tillo analysed data from hundreds of partners and brands to uncover:
Tillo’s CEO, Alex Preece, highlights that:
“Although the digital gift card industry is a relatively niche sector, it continues to grow and drive some incredibly exciting new use cases – with many businesses releasing that driving loyalty, acquiring and incentivising customers, and creating delight is even more important now than it was pre-pandemic.”
Get access to never-before-seen data and download “The Evolution of Digital Gift Cards” report here.
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