What are the key sectors to achieve B2B gift card sales?

Approximately 60% of gift card sales in the UK are to business customers.  Not only do B2B gift card sales occupy the largest market share, they are also growing.  The latest half yearly data from the ‘Gift Card and Voucher Sales Analysis and Outlook UK’ report, compiled by KPMG and the GCVA, shows that B2B gift card sales grew by 10% in H2 2023.  Therefore, brands looking to maximise gift card sales should definitely not overlook the opportunities that exist in B2B.

Businesses buy gift cards to deliver a whole variety of commercial goals such as building a happier and more engaged work force, a more motivated sales channel and a loyal and satisfied customer or membership base.  At Diggecard, we quite often summarise it as rewards, incentives, benefits and promotions for employees, customers and members but of course there is much more detail, so let’s explore the key sectors to achieve B2B gift card sales.  

1. Rewards and incentives

Physical and digital gift cards are used as rewards or incentives to drive behaviour amongst customers, employees and members.   Different gift card brands and denominations can be used to deliver different levels of reward or incentive such as employee performance recognition or long service awards.

2. Customer acquisition and loyalty

Businesses purchase gift cards to give to customers when they purchase, subscribe or engage for the first time, spend over a certain level or for customer or member referral programmes.  They are also used for consumer loyalty where points are converted into currency for favourite brands.

3. Membership benefits

Corporate buyers provide their members with added value and great offers by incorporating gift cards into a membership benefits programme. 

4. Market research

Gift cards are useful in recruiting and rewarding market research panel participants, helping to build a large pool of respondents to collect valuable insights and data.  This can be an easier and cheaper alternative to cash incentives.

5. Cash replacement and compensation
Businesses use gift cards as a cost effective way to make cash pay outs such as insurance settlements or to cover business travel expenses.  They can also help to turn around difficult situations with customers by offering compensation via a gift card.

6. Promotional marketing
Marketing agencies and other organisations utilise gift cards in promotional marketing activity to encourage desired consumer behaviours.  For example, when consumers sign up to a subscription they receive a gift card, or when they enter a competition they win a gift card.

7. Gift card malls

Retail, leisure and hospitality brands can sell their gift cards to businesses who operate gift card malls, both in store and online.  Gift card malls display a wide range of gift card brands along side each other to allow consumers to choose a range or purchase along side their everyday grocery shopping (in store malls).

8. Employee engagement

Organisations who are looking at ways to keep their employees engaged, offer discounted gift cards to their team members to help them make savings on everyday shopping and one off purchases.

9. Channel incentives

Gift cards help to motivate great performance in the sales channel, incentivising specific actions or rewarding overall achievement amongst sales or channel partners.  A cost effective alternative to cash rewards and incentives.

10. B2G – business to government

A growing area for B2B gift card sales is B2G – business to government.  Gift cards can help government institutions deliver benefits and other social programmes more cost effectively and efficiently. 

Diggecard’s network of business customers across all these sectors is one of the reasons why brands trust us with their B2B gift card programme, as well as the fact that we can activate sales quickly by introducing brands to this network.  

Don’t just believe us though, here is what Head of Gift Cards at LEGO® said about us. “We fully entrust Diggecard with our B2B gift card programme due to their collaborative, expert and honest approach.  Their presence in the global B2B gift card market and wide buyer network, teamed with our joint commitment to extend creativity and fun through B2B channels has enabled strong sales which are set to continue”. 

Contact us to find out how we can help you to expand your B2B gift card sales, or if you are a business looking to purchase gift cards, get in touch to find out about our delivery services and solutions.  Explore our brand portfolio to see the brands we already work with.