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 As more people rely on digital wallets and online transactions, traditional paper-based rewards feel outdated, inefficient, and often inconvenient.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.
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.
Benefit |
Why it matters |
Instant Impact | Digital rewards deliver a fast, cost-efficient boost to your incentive programs with no waiting and no shipping hassles. |
Broad Appeal | They resonate with employees, customers, and survey participants by offering flexible, bite-sized rewards that leave a lasting impression. |
Global Reach | Access a worldwide selection of popular brands to suit every market and audience, ensuring universal appeal. |
Effortless Management | Automated delivery and real-time tracking simplify program administration, letting you focus on performance and outcomes. |
Modern Engagement | By leveraging digital wallets and online transactions, these rewards foster higher engagement and create memorable experiences across your incentive initiatives. |
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.
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:
Customer loyalty program management benefits from electronic rewards through:
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.
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:
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.
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:
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.
Specifically, you can implement an electronic rewards system effectively with these best practices:
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.