7 Gift Card and Loyalty Programs Ideas to Use Today

Loyalty programs are proven revenue generators for both restaurants and convenience stores, often to the tune of double-digit financial growth. Unfortunately, proprietors of both types of establishments often make one crucial mistake: They botch the rewards they offer. 

Where is the disconnect? Many businesses focus only on rewarding members with special promotions and discounts, but most people—a full 61%—would rather earn gift cards. Furthermore, 55% of loyalty program participants want the flexibility to redeem what they want. (Runa) 

Their Gift Card, Their Choice 

This is not to say people don’t want promotions and discounts, so don’t abandon those offers, but restaurant loyalty programs with a gift card integration are more likely to give you the biggest bang for the buck. Think of it this way: A customer might not be in the mood for a free ice cream coupon, but she may be excited to use a free $5 gift card on an iced coffee she’s been craving. By not limiting her reward, you are more likely to entice her to visit your business.  

Gift cards can go a long way toward building customer satisfaction and loyalty, and that’s always good for business. However, gift card integration is also good for your bottom line because your average consumer is going to spend more than the amount on the card. In fact, 75% of people who redeem a gift card spend more than the value of the card (MarketWatch). You might give away $5, but the customer's chances of spending double or more are high. 

If making your customers happy and increasing their visits and spending isn’t enough for you to offer a gift card and loyalty program, consider one other crucial business benefit. With gift card integration, you can capture data on customers’ spending habits and preferences. As you may know, data is the backbone of any solid marketing strategy, enabling you to send personalized messages and improve your product selection and services to better meet customers’ expectations. 

Gift card integration into your loyalty program could include: 

1. Enabling customers to earn points toward a free gift card  
2. Sending a small gift card—perhaps $5—on customers' birthdays, anniversaries, or other special occasions  
3. Offering a gift card which can be used toward specific items (i.e., to clear out inventory or to sell seasonal items)  
4. Providing gift cards in response to customer complaints or to apologize for an inconvenience  
5. Running a gift card customer reengagement campaign   
6. Rewarding loyalty members with a gift card for every person they refer and signs up for your app  
7. Sending VIP gift cards of higher amounts to your most loyal customers 

The key to successful gift cards and loyalty programs is making them easy to access and use, and that’s why more and more consumers prefer loyalty apps that enable real-time access and reward redemption.  

Benefits of Offering Digital Gift Cards 

Loyalty apps with gift card integration also provide you with a platform for sharing digital gift cards for restaurants or convenience stores. Those digital gift cards could be a reward customers earn through membership in a loyalty program, or they could be digital gift cards you sell. 

Most restaurants and convenience stores offer gift cards, usually physical plastic cards, but digital gift cards for restaurants and convenience stores are becoming increasingly popular. Right now, digital gift cards account for 48% of total gift card spending (Reloadly), and that percentage is expected to grow as consumers experience the value of a digital format.

So, while you may want to keep those physical cards on hand for some shoppers, encouraging your customers to switch to digital is good for both them and you. Digital gift cards for restaurants and convenience stores: 

• Reduce the costs associated with the production of physical cards (good for your business) 
• Can be shared easily through email or mobile apps (good for your business) 
• Are more secure for consumers and can’t be lost (good for customers) 
• Offer instant delivery, so procrastinating buyers can still get a last-minute gift (good for customers) 
• Decrease plastic waste so they are more eco-friendly (good for everyone) 

As you reward customers with gift cards for your loyalty program, opt for the digital format. When you’re selling gift cards to your customers, use the selling points above to encourage them to also opt for digital gift cards for restaurants and convenience stores, instead of their physical counterparts.

Using Loyalty Programs to Reward Gift Card Purchases 

Another big question businesses often have when it comes to their gift card and loyalty programs is: "Should we also offer reward programs for gift cards?" In other words, should consumers earn points or rewards for all their gift card purchases? 

We say ‘yes’ because it can increase customers’ satisfaction and spending. For example, you may offer: 

• Point amounts for gift card purchases. Example: For every $25 spent on gift cards, loyalty card members earn 100 points.  
• Free items for gift card purchases. Example: For every $50 gift card purchased, the buyer receives a $5 gift card or a coupon for a free dessert.  
• Tiered rewards. The more gift cards for restaurants or convenience stores the customer purchases, the higher their reward. Example: $100 worth of gift cards earns a free $10 gift card, whereas $200 worth of gift cards earns a free $25 gift card.  
• Bonus points promotions. Promote double+ points for gift card purchases during specific periods. Example: During one week in December, offer triple rewards points for all gift card purchases. 

Each of those reward programs for gift cards incentivize customers to purchase your gift cards, either as gifts for others or even for themselves. If they plan on spending money at your business at some point anyway, those freebies can encourage them to purchase the gift cards to use instead of cash.

Reward programs for gift cards can build customer loyalty, keep them coming back, and encourage them to spend more on gift cards. Plus, when they use the gift cards as gifts, you’ll gain new customers. 

Read how Paytronix helped Duffy's Sports Grill increase gift card sales by up to 10.9 times the daily average by offering bonus dollars!  

Examples of Successful Gift Card and Loyalty Programs

Some of the most successful gift card program examples we’ve seen strike a balance of offering personalized promotions, with rewards options, including some type of gift card that enables customers to spend their rewards on items they want.  

• Starbucks Rewards® stands out. This app-based loyalty program sends out promotions for free items on birthdays and special occasions. Additionally, each time a person uses the app to make a purchase, they earn rewards toward free items of their choosing. For example, at 100 Stars, they can get a free brewed hot or iced coffee or tea, bakery item, or packaged snack. At 400 Stars, they can get free merch up to $20.  
• 7REWARDS®, 7-11’s popular reward program offers members exclusive deals, and they can earn points on every dollar spent and redeem them for free snacks. Plus, they get a free Slurpee® during their birthday month, they can take advantage of Bonus Points, and they can play AR games for additional ways to earn points.  
• At Stone Cold Creamery, the My Cold Stone Club offers a “Buy One, Get One Free Creation” after members join and on their birthdays. For each $1 spent, members earn one point, and the points are automatically converted to a $5 off coupon when they reach 50 points. 
• Lastly, at BJ’s Brewhouse, BJ’s Premier Rewards Plus members get a free Pizookie dessert at sign-up and another on their birthday. Then for every $1 they spend, they get a point. When they reach 100 points, they receive a $10 reward. Plus, members get other exclusive deals and offers.  

Integrate Digital Gift Cards into Your Loyalty Program  

Earlier we shared just a small snapshot of gift card program examples that offer a range of formats, point structures, and rewards. The type of program you choose for your business comes down to three factors:  

1. Your business type. Gift cards and loyalty programs for restaurants and convenience stores are proven strategies for driving repeat business, boosting sales, and building customer loyalty. They authentically offer a win-win solution for both the business and the customer.  
2. Your customer base. Loyalty programs with gift card integrations can satisfy everyone, offering customers the flexibility to choose the items they want. They’re great options for restaurant and convenience store loyalty programs.  
3. Your tech stack. Your ability to offer an effective gift card and loyalty program comes down to your technology capabilities. A program that offers a seamless, friction-free user experience, real-time updates, personalized offers, and automated digital gift cards requires a robust technology platform. 

We can help with all of the above! Reach out now to learn how we can help you launch a successful customizable gift card and loyalty program.