Gifting programs are among the most popular services OnFulfillment offers. Our clients find they are extremely useful for recognizing, rewarding, and welcoming new and existing customers, partners and employees.
These programs can take many forms, including gift cards, coupon codes, discount codes, redemption codes, rewards points, and first-time user gifts. While these are all different mechanisms used for providing discounts or incentives to recipients, many people assume they are all basically the same and are unsure which programs are best for their specific goals.
The fact is each one provides a unique business solution tailored to a specific need. Following is a quick overview of each service and how they can help you with your internal and external gifting programs.
Gift Cards
A gift card is a prepaid card or, more likely, a digital code that can be used by individuals or groups to purchase items at an online company store, a specific retailer, or within a specific network of retailers.
Gift cards are typically loaded with a specific monetary value. Recipients then use the card to purchase items or services of their choice.
These cards are frequently given as gifts—for instance, to employees to reward them for their hard work, or to clients to thank them for their continued business. They can also be given to groups, such as employees at a remote office, to purchase branded merchandise that can shared by coworkers.
It's important to note that gift cards are not usually associated with discounts—rather, they represent a dollar amount to be used for future purchases.
Coupon Codes
Coupon codes are alphanumeric strings that online shoppers enter during the checkout process to receive a predetermined discount on their purchase. These codes are typically used by retailers as part of a promotional campaign, or as an incentive for customers to make a purchase.
The types of discounts offered by coupon codes can vary; for instance, they might offer a percentage off the purchase price, a fixed dollar amount off, or a free service such as shipping. It is also worth noting that coupon codes are temporary and do have expiration dates, so their application is limited.
Our customers have found that coupon codes are a great way to launch a new product, service, or web site, whether for an internal or external audience. By offering a certain percent off the final purchase price, they can drive additional traffic to their site and enjoy the benefits those extra visitors afford.
Discount Codes
Discount codes are very similar to coupon codes; in fact, these names are frequently used interchangeably. Both refer to unique alphanumeric codes that provide customers with a discount on their purchase.
Like coupon codes, discount codes can offer a variety of “percentage off” price reductions and are typically temporary—they do have expiration dates.
One important difference between coupon codes and discount codes is that discount codes are highly customizable and can be personalized for a specific recipient and/or item. Our clients have used discount codes as a way to thank new customers for visiting their website by offering them a small discount off the purchase of a specific item. The key is that these codes are unique to that person and/or item.
Redemption Codes
Similar to coupon and discount codes, redemption codes are alphanumeric strings that are used during the checkout process to receive a certain benefit.
The difference is that redemption codes are more flexible and can be used for purposes beyond merely offering discounts on a purchase. Redemption codes can also be used to claim a preselected product, service, or subscription, or to activate software or access protected digital content.
We have found that redemption codes are excellent for both internal and external use as a way to reward or acknowledge employees, partners, or customers. OnFulfillment can produce a block of unique, one-time-use codes that takes recipients to a web page to claim a specific preselected item or items. Internally, clients can use the code to, say, congratulate an employee for completing a training course. Once the code is used and the gift is claimed, the code is no longer valid.
The same method can also be used to reward partners or salespeople for achieving a certain goal or milestone. Externally, redemption codes can be used to gift customers with tickets to a local event. The possibilities are virtually endless.
Rewards Points
Anyone who uses a credit card or belongs to a frequent flyer program understands the concept of rewards points: loyal repeat customers accumulate points based on purchases or other specified actions. Those points can later be redeemed for gifts, discounts, or other services.
Our corporate customers use a variation of this program in which groups on a budget—sales teams, for instance—can earn or are granted a specified number of “reward” points on a regular basis (usually quarterly) that can be redeemed later for materials or merchandise they can use on the job. In the case of the sales team, these points might be spent on items like printed collateral, conferences, or branded giveaways for prospects or customers.
Rewards points are not redemption or coupon codes. They are a points-based system tied to the recipient’s account in which the points represent a specific dollar value. This is a great way to discourage overspending.
First-Time User Gifts
First-time user gifts are pre-selected items offered to recipients who have recently joined a company, either as an employee or a new customer. These gifts can vary widely, ranging from discounts to free merchandise or other benefits.
A particular favorite of HR departments and sales teams, first-time user gift programs provide a link to a web page where the recipient can log-in and claim their reward—a new-hire kit for employees, for instance, or a welcome gift for a new customer. Designed for one-time use, the page disappears and the link becomes invalid after initial access.
Choose the Right Gifting Program
Which is the right gifting program for you? Obviously, it depends on the situation. But knowing what’s available, and the differences between them, will allow you to make an informed decision that helps you achieve your ultimate goal.
In a nutshell, the primary differences between the various programs lie in their nature and purpose:
- Gift cards are a prepaid credit that can be used to purchase any goods or services.
- Coupon codes and discount codes are alphanumeric strings applied at checkout to receive predetermined discounts.
- Redemption codes are similar to coupon or discount codes but are more versatile and can be used for purposes besides just discounts.
- Rewards points are earned and redeemed by repeat loyal customers or other users.
- First-time user gifts target new employees or customers and are available for one-time use only.
OnFulfillment has experience with all of these programs and has pioneered their use in the marketing and event fulfillment industry. We’re happy to share our expertise with you and develop a program that meets your immediate and future needs.
Simply visit our Contact Us page and complete the form, including your specific needs. We’ll be in touch to schedule a meeting.
