Read time 3 mins
Author Sophia š±
Cashback is taking off, so standing out and offering something more than a simple discount is essential! Consumers love discounts but also crave flexibility and value from their rewards, and thatās where the power of gift cards comes in.
Gift cards are a great way for consumers to redeem their cashback, but they also open up new opportunities for cashback providers to maximize their returns.
Hereās how gift cards play a crucial role in cashback programs and why savvy cashback providers need to get on board.
Gift cards have become an integral part of modern cashback systems, providing both "earn" and "burn" opportunities for cashback providers and users alike.
The beauty of gift cards in the cashback ecosystem is that they offer a double-win: customers love them, and providers can capitalize on built-in discounts to increase their margins.
When customers make purchases through a cashback platform, they accumulate a certain percentage of their spending back as cashback. The very same principle can be applied to gift cards, the only difference being that gift cards have a discount margin baked in making the cashback percentage more profitable to the provider.
On the flip side, cashback providers can also capitalize on gift cards by offering them as a cashback burn mechanism. While cashback can traditionally be paid out in cash or as credits, gift cards offer a more enticing alternative.
Instead of earning cash that might get spent anywhere, users can choose gift cards from a wide array of popular brands. This offers them the flexibility to redeem their rewards with companies they already love, like Amazon, Apple, or major retailers.
PLUS, the added benefit of gift card discounts gives cashback providers the option to add additional value to cashback rewards redeemed via gift card, turning $10 cashback into $15 when redeemed via a gift card.
Gift cards are the most universally attractive form of reward across all demographics, with 67.52% of consumers considering them an enticing reward or incentive. This strong preference is seen consistently in both the UK (67.35%) and the US (67.70%), making gift cards a universally appealing reward option.
People are drawn to gift cards because of their flexibility and ease of use, and this holds true in the cashback world too. When given the choice, customers often prefer to redeem their rewards in the form of gift cards, as they view them as a special treat or a bonus they wouldn't otherwise splurge on.
For cashback providers, this means higher engagement and better retention. By offering gift cards as a redemption option, you give your customers something to look forward to, driving them to earn more cashback just so they can spend it on that perfect gift card.
The biggest secret? Thereās real money to be made from offering gift cards. Thanks to gift card discounts, cashback providers can secure gift cards at a lower cost, passing on some savings to their users while boosting their own margins. Essentially, what was once a simple pass-through expense (cashback payouts) becomes an opportunity to profit, allowing businesses to reinvest in growth and user experience.
Gift cards also foster brand loyalty. Once users start redeeming gift cards with specific brands, theyāre more likely to return to those same brands in the future, leading to repeat customers and a sustainable ecosystem of rewards.
Tapping into the world of gift cards for your cashback program doesnāt have to be complicated. With Tilloās award-winning API, cashback providers can effortlessly connect with over 2,000 of the worldās most sought-after brands, offering their users unparalleled choice while simplifying the backend for your team.
Hereās why Tillo is the perfect partner for cashback providers:
Our API acts as a bridge between cashback providers and global gift card brands, making it easy to offer gift cards as part of your cashback program. With just one integration, you gain access to a global network of gift cards supporting 37 markets and 25 currencies. The best part? Itās simple to integrate and comes with full support, meaning you can be up and running in no time.
Tillo doesnāt just offer connectivity; we help cashback providers drive revenue. By partnering with global brands, Tillo secures competitive discounts on gift cards, meaning every redemption can actually generate a profit for you. Imagine turning your reward system from a cost center into a profit generator, all while keeping your customers happy and engaged!
Our technology is built for businesses that want to innovate. If youāre looking to build your own front-end, B2C gift card mall, our API is designed to be the perfect foundation to build on. But if that sounds like too much work, no worries - Tillo also offers Tillo StoreFront, a ready-made, customizable solution that allows cashback providers to launch their own gift card store without having to build a thing.
Tillo is recognized globally as a leader in the gift card space, having won numerous awards, including the prestigious Customer Service Accreditation. We understand the importance of building strong partnerships, and our service is designed to support your success every step of the way.
Ready to see how gift cards can supercharge your cashback platform? Whether youāre looking to offer more rewards, boost your margins, or simply make life easier for your technical team, Tillo has the perfect solution.
Letās connect, and weāll show you how gift cards can transform your cashback program.
