Electronic Rewards 101: Easy Options for Businesses & Researchers

Electronic rewards are changing the way businesses run incentive programs, making rewards easier to send, track, and redeem. Whether you're looking to boost employee engagement, encourage customer loyalty, or streamline research incentives, eRewards offer a seamless and instant solution—no more shipping delays or lost gift cards.

Digital incentives have become a vital part of modern engagement. As more people rely on digital wallets and online transactions, traditional paper-based rewards feel outdated, inefficient, and often inconvenient.

In this article, we’ll explore electronic rewards, why they work so well, and how to use them effectively in different programs. From instant digital gift cards to automated reward systems, we’ll break down the benefits, best practices, and top options for making your incentive program a success.

Article at a glance 🔎 Electronic rewards transform incentive programs by offering instant, flexible, and cost-effective digital gift card options that boost engagement and streamline operations. They empower businesses to deliver personalized rewards instantly, enhancing experiences for employees, customers, and research participants alike.

What are eRewards?

Simply put, electronic rewards (i.e., eRewards) are any digital rewards or incentives that you distribute electronically rather than physically.

The need for automated gift card fulfillment is always growing, requiring more (and more sophisticated) digital distribution options. These include digital gift cards, virtual prepaid cards, and points-based systems that recipients access instantly through email, SMS text, social DMs or Slack, or their own dedicated reward platforms.

That’s why more and more businesses are using eRewards for their reward and incentive programs. eRewards eliminate shipping, handling, and inventory management needs, allowing instant delivery to recipients worldwide with just a few clicks.

💬 “The key for a successful program comes down to engagement and behavior change," says Nat Salvione, Giftbit CCO. "The reward being digital and instantly available plays a critical role in that success.”

Why digital gift cards make great eRewards

Section at a glance 🔎 How digital cards offer significant advantages over physical ones:

✅ Instant delivery when rewards are earned
✅ No shipping or production costs
✅ Smaller denomination options for flexible rewards
✅ Choice from hundreds of popular brands

Sure, electronic rewards of all types of treat. But which ones work best for which best for business use cases?

The answer is simple: digital gift cards (especially from popular brands like Amazon and Starbucks) and prepaid cards (like Mastercard®).

eGift cards and prepaid cards are incredibly effective for digital rewards programs for a variety of reasons.

First, studies show that recipients typically find non-cash rewards (like gift cards) to be more meaningful than receiving cash.

Moreover, the majority of people who receive gift card incentives will remember why they earned it and what they purchased, and associate positive feelings with the providing company.

Unlike cash rewards that blend into everyday expenses, electronic gift cards and prepaid cards create distinct, memorable experiences. When you give an electronic gift, recipients get excited about spending it on something they truly want.

“Digital gift cards get results," says Nat. 

Note, too, all the ways electric options are better than physical gift cards: you can deliver them instantly (especially great for interactive apps and programs), they’re cost-effective and operationally sound, and you can offer them in a wider range of denominations (even down to a penny).

Plus, you can give your audience a curated list of rewards in line with your brand and goals (so, League of Legends, VALORANT, and/or Apple gift cards to entice your digital savvy users, for example), or you can give them complete choice from a robust, global digital rewards catalog.

Perhaps just as important, digital is just what modern audiences want. Consider that 53% of Americans use their digital wallets more than traditional payments, while even more use them at least some of the time. Customers today are digital and on their phones (usually more than we’d like to be!), so modern customer engagement today requires digital options.

Giftbit makes it simple to purchase and distribute digital gift cards in bulk for virtually any purpose. Here’s how to start sending rewards today:

1. Sign up for a free account. There are no setup fees, minimums, or subscriptions—just pay for the rewards you send.

2. Upload your recipient list. A first name and email address are all you need.

3. Customize your rewards. Use templates, branded messaging, and personalization options to tailor the experience.

4. Fund and send. Free funding options include bank wire, EFT, and direct debit. We also accept most major credit cards. Auto-funding and custom funding solutions are available—contact us to learn more.

Up next, we’ll cover some ways to maximize the functionality of electronic gift cards and prepaid cards for a variety of key use cases.

Effective electronic rewards for online surveys and market research participation

Automated rewards cards let research teams focus on data quality rather than incentive logistics.

Specifically, electronic rewards solve several key challenges for research incentive programs:

• Lower denominations: Many research projects require numerous participants, making smaller reward amounts (even as little as $5 to $10) economically feasible with digital delivery.
• Immediate delivery: You can automatically trigger electronic rewards upon survey completion, maintaining engagement and encouraging participation.
• Privacy management: You can configure digital payouts to minimize the collection of personally identifiable information (PII), addressing privacy concerns while still providing value to participants.

Effective electronic rewards for customer retention and engagement

Customer loyalty program management benefits from electronic rewards through:

• Global options: If you have customers across different countries, using international eGift cards will keep everyone happy, without adding new administrative burdens.

• Milestone automation: Electronic rewards can disperse automatically at specific customer milestones, like anniversaries, birthdays, or achievement of loyalty thresholds.
• Redemption tracking and reporting: Digital systems allow you to monitor which promotions and rewards drive the highest engagement, providing valuable data to optimize your loyalty strategy.
• Loyalty points: A strong loyalty program lets customers earn points for purchases, referrals, and other engagement. Gamification boosts participation, making rewards more exciting. With the right gift card API, reward points can be instantly redeemed for digital gift cards, streamlining the process for both customers and businesses while reducing admin work (win-win-win).

Combined, these capabilities help create omnichannel rewards experiences that will feel personalized, regardless of where customers interact with your brand.

Pro-tip: want to offer your loyal customers gift cards for subscriptions for services like Blue Apron, Hulu, Paramount+, or Roblox? It’s easier than you think—learn more here.

Effective electronic rewards for employee rewards and incentives

We know that the majority of employees prefer non-cash incentives like digital rewards over cash bonuses. Electronic rewards can also simplify peer-to-peer recognition programs, building stronger team connections while reinforcing company values.

When planning employee rewards programs, you might want to consider:

• Everyday essentials: With inflation impacting virtually every segment of the economy, practical rewards like grocery and gas gift cards have become increasingly popular for employee incentives. Digital gift cards to retailers like Kroger, Publix, or Safeway (for American employees), Sobeys, IGA, and Foodland (for team members in Canada), and Tesco and Asha (for those based in the UK) will help your employees offset essential expenses, creating genuine appreciation.
• A wellness focus: As workplace wellness becomes a higher priority, digital gift cards for self-care, fitness, and mental health services provide meaningful support for employee wellbeing. These types of gift cards aren’t just perks. They’re thoughtful choices that demonstrate that you value your employees' health and happiness beyond their work contributions.
• Rewards for sales teams: Many companies also use electric gift cards and prepaid cards as part of larger sales incentive programs. Digital rewards can be particularly effective for SPIFFs and other performance-based bonuses.
  
  

Note: electronic rewards can also help your sales team to make more sales. Use them to empower individual salespeople with gift card links they can use as door-openers and throughout their entire sales cycle. Learn how here.

Electronic rewards catalogs

A robust electronic rewards catalog provides the backbone of any successful digital incentive program. You'll want an eRewards catalog with extensive brand options, global reach, and flexible redemption options.

For example, Giftbit’s global rewards catalog offers incentives from hundreds of best-in-class brands with regional and global options, suitable for programs of any size and geographic reach. Whether rewarding employees in Toronto, customers in Chicago, or research participants in EU, India, and beyond, the catalog provides relevant options your audience will love.

An effective electronic rewards catalog serves maximum flexibility by letting you offer specific brands or full catalog access. Look for one that lets you:

• deliver rewards through multiple channels (email, text, social media, or your own app)
• select between time-limited promotions or evergreen rewards,
• include both versatile prepaid cards and brand-specific gift options, all customizable to match your exact program needs.

Best practices for implementing an electronic rewards system in a small business

If you are a small business owner or a program manager tasked with finding a budget-friendly electronic rewards system, start with finding a reputable gift card distributor with a fair, transparent pricing model.

Small businesses in particular should look for gift card providers that don’t require minimum spends, contracts, or complex integration. It should only ever cost you $50 to send a $50 gift card, for example.

If you are a small business looking for electronic rewards, keep one thing in mind. Many traditional gift card companies are primarily focused on the ‘big guys.’ In other words, if you’re not planning on spending tens of thousands of dollars a year, you’re going to find it difficult to get the hands-on support you need to get started and keep growing your program.

So look for a partner that wants to grow with your business, offering scalable solutions as your needs evolve.

💬 “Businesses have so many people in their network and communities that they want to incentivize and reward. And they want to do that in a way that is respectful and fast," says Leif Baradoy, Giftbit CEO. "Giftbit makes this process very easy for the business, but also easy and enjoyable for their recipients.”

Specifically, you can implement an electronic rewards system effectively with these best practices:

1. Choose the right distribution partner: Find a provider with transparent pricing, no hidden fees, and flexible options without long-term contracts.
2. Define clear objectives: Establish specific, measurable goals before launching your program.
3. Start small and scale: Begin with a focused initiative, measure results, and expand based on success.
4. Prioritize recipient experience: Make claiming and using rewards simple, and avoid unnecessary downloads or account creation steps. You’ll also want to ask any gift card distributor you’re considering about their track record for recipient support.
5. Track and analyze results: Use platform reporting features to monitor engagement and redemption rates.
6. Communicate clearly: Ensure participants understand how to earn rewards and available options.
7. Consider timing carefully: Like we’ve covered, immediate rewards often have more impact than delayed gratification. If you’re not planning to build with gift card API, you might consider a no-code Zapier integration that will let you link your electronic rewards program to tools you’re already using (like your CRM, Google Docs, or Slack).

Improve any digital loyalty program

Electronic rewards are transforming business motivation strategies by offering immediate gratification, meaningful choice, and streamlined administration.

Indeed, experts are predicting that the global gift card market should reach over $3 trillion by 2030. So there's lots of potential here—including potential for mismanagement and added complexity if you don't approach using electronic incentives in the right way. 

Meanwhile, choose the right gift card partner, and you'll be able to create a simple, operationally efficient and incredibly effective digital program. That's how Greg Augustine, Project Manager at Prime46, dramatically improved his market research workflow. 

💬 “Giftbit has literally saved 25% of my time," says Greg. "I like things that are intuitive and keep it simple.” 

So to save time and stay ahead like Greg, make sure you create a digital incentive program with instant delivery, real-time tracking, and an improved ecological footprint. 

Giftbit empowers businesses to distribute electronic rewards at scale with 700+ global gift card brands available through an intuitive dashboard, a robust API integration, and no-code automation. Reach out to learn more about your options, or set up a free account to get started right away.