5 Tips to Improve Digital Gift Card Programs

The 2025 edition of the annual Best Digital Gift Card Programs report, produced by Blackhawk Network and NAPCO Research, offers a deep dive into how 100 U.S. merchants are optimizing their digital gift card programs. The report is based on the evaluation of 100 U.S. brands' digital gift card programs across 175 unique criteria.

In addition to the individual merchant rankings, the Best Digital Gift Card Programs report features key insights from the assessment data as well as best practices that can be implemented to help retailers boost digital gift card sales. Here are some of the tips featured in the report.

1. Optimize your gift cards for search results.

If a user is searching for “brand name + gift card,” whether on a search engine or the brand's website, it's a signal that this is a high-intent shopper with a high probability of conversion. Ensure these motivated shoppers can easily find what they already want to purchase.

Furthermore, use a mix of organic search optimization and paid placement to maximize findability. Ensure that your brand consistently ranks at the top of Google search results for your gift cards by having designated webpages for these products. Consider testing Google Ads to further expand the reach and visibility of your gift card program.

2. Add new digital delivery channels.

It's not surprising customers want a fast, seamless delivery experience. When recipients receive their gift cards quickly, they're happier with the experience — and they're more likely to return to your brand.

Merchants can prioritize gift card delivery speed, security and flexibility by providing customers with a shareable link so they can send gift cards via whatever channel they choose (e.g., email, SMS, Messenger, WhatsApp, etc.). In addition, retailers can make delivery more secure via digital channels by requiring information (e.g., a phone number, email address) to access the gift card.

3. Use gift cards as a promotional tool.

Consumers love deals (especially in today's uncertain economic environment), and promotions are a great way to remind your audience of all your gift card options. Consider running both holiday-specific and general promotions throughout the year. On average, merchants earned only one-third of the points available for using gift cards in promotions. Here are some tips to consider for using gift cards as a promotional tool:

• Incorporate gift cards into your promotional strategy to target key occasions for your brand (e.g., Father’s Day for a golf brand).
• Consider running co-branded gift card promotions with complementary brands/products to extend the reach of your program.
• Test various types of promotions to determine what is most appealing to your customers, such as:
  • Buy a $100 gift card, get $10 free.
  • Get a 10 percent discount off a $50 gift card.
  • Earn extra loyalty points with gift card purchase.

4. Market that digital gift cards make for great eco-friendly gifts.

Many consumers are looking for ways to make their lives more sustainable, and shopping is a core component to that. Gift cards can be one of those ways, with digital gift cards producing 97 percent fewer carbon emissions than plastic gift cards, according to a BHN digital gift card carbon footprint independent third-party review. With that in mind, merchants should add messaging to their programs to remind shoppers that e-gifts are an eco-friendly gift option.

5. Leverage artificial intelligence for gifting recommendations.

While a new criterion in the 2025 report, just 5 percent of the merchants earned points for using AI for gifting recommendations. Research by BHN found that 73 percent of consumers find AI to be a helpful gift shopping tool, so there is opportunity to use the technology to improve the gift shopping experience for consumers. For example:

• Recommend gift cards for brands that are in a particular geographic region.
• Suggest gift cards that are on sale.
• Include gift cards in search recommendations.
• Add an AI-powered shopping assistant.

For more tips and further analysis of the digital gift card market, including rankings of 100 leading U.S. merchants' programs, download the 2025 Best Digital Gift Card Programs report.