6 Powerful Ways to Use Rewards & Incentives to Drive Growth

Rewards and incentives are essential tools for businesses looking to engage employees, acquire customers, and build lasting relationships. Whether you’re recognizing employees for their hard work, incentivizing new customers to sign up, or encouraging user participation, the right incentive strategy can boost satisfaction, motivation, and ultimately, your bottom line.

And digital gift cards? They’re the perfect way to do it.

Digital gift cards offer instant gratification, flexibility, and universal appeal - making them a go-to choice for businesses looking to implement effective reward programs at scale.

This trend is accelerating across North America. According to a recent study by Research and Markets, the digital gift card market grew from $323.74 billion in 2023 to $371.77 billion in 2024 and is expected to continue growing at a CAGR of 16.09% reaching $920 billion by 2030! 

Let’s explore six powerful ways businesses use rewards and incentives to create impact.

1. Boost employee motivation & retention

The modern workforce expects recognition. A Gallup poll found that employees who feel recognized are 63% more likely to stay at their current job. Meanwhile, 79% of employees say they would work harder if they felt better appreciated. 

A well-designed employee reward program featuring digital gift cards can go a long way in keeping employees engaged and motivated. Recognizing top performers, rewarding tenure, and celebrating milestones with a digital gift card can reinforce a positive workplace culture and enhance employee satisfaction.

And when employees feel valued, they deliver better service - creating a ripple effect that benefits your entire business.

2. Increase participation in surveys and research

Data is invaluable, but getting people to take part in surveys, focus groups, or market research studies isn’t always easy. Incentivizing participation with digital gift cards can significantly increase response rates and engagement.

In fact, studies show that offering an incentive increases survey completion rates by as much as 50%. Whether you’re a research firm, marketing team, or recruitment agency, digital gift cards can be a powerful tool for boosting response rates and gathering valuable insights.

Recruiters also use digital gift cards to:

• Thank existing clients for referrals
• Incentivize applicants to complete assessments
• Reward successful hires upon placement
  
  

3. Drive new customer acquisition & sign ups

Acquiring new customers can be expensive, but offering a digital gift card as a sign-up incentive can improve conversion rates. 92% of consumers say they are more likely to complete a purchase if offered an incentive.

Refer-a-friend programs also benefit from gift card incentives. Companies in banking, fintech, and utilities frequently offer digital gift cards to encourage customers to bring in new users. For example, financial services companies like Chime and SoFi offer $50–$100 digital gift cards for referrals, while energy providers use incentives to drive new service sign-ups.

4. Generate more customer reviews & testimonials

Online reviews influence 95% of purchasing decisions. However, getting customers to leave a review can be challenging. A well-placed digital gift card incentive can encourage happy customers to share their experiences.

Best practices include:

• Offering a small digital gift card for verified reviews
• Rewarding customers who leave in-depth testimonials
• Incentivizing video reviews for social proof

However, it’s crucial to ensure that incentives don’t influence the authenticity of reviews - always encourage honest feedback.

5. Increase upsell and upgrade rates

Customers are more likely to spend more when offered an incentive. 60% of consumers say they are willing to spend extra when provided with a relevant reward.

Some industries, like automotive and real estate, leverage digital gift cards to encourage upgrades. For example:

• Car dealerships offer digital gift cards when customers choose premium features.
• Homebuilders reward buyers with a digital gift card for selecting high-end finishes.
• Subscription-based businesses use gift cards to incentivize plan upgrades.

By strategically offering digital gift cards, businesses can increase the perceived value of an upsell while making customers feel rewarded.

6. Improve customer service & claims resolution

Many businesses use digital gift cards as a goodwill gesture to resolve customer service issues. In cases where a refund or compensation is necessary, a digital gift card provides a quick and frictionless way to settle claims.

For example:

• Airlines and hotels offer digital gift cards for service disruptions.
• Retailers use them to compensate for order delays or errors.
• Insurance providers issue digital gift cards for small claims settlements.

Unlike traditional refunds or bank transfers, digital gift cards are instant, secure, and more likely to be used toward future purchases, strengthening customer loyalty in the process.

Seamless gift card integration with Tillo’s API & StoreFront solution

Businesses looking to leverage digital gift cards at scale need seamless, efficient solutions. That’s where Tillo’s API integration and StoreFront solution come in.

• Tillo's plug-and-go gift card API: Integrate digital gift cards into your existing platform effortlessly, automating distribution and making rewards instant and scalable.
• Tillo StoreFront: A ready-made, easy-to-deploy storefront that allows you to sell and distribute digital gift cards without complex development.

Whether you're looking to drive employee engagement, acquire new customers, or streamline compensation processes, Tillo makes it easy to incorporate digital gift cards into your strategy.

Ready to get started? Contact our team today to learn how Tillo can power your rewards and incentives program!