Blackhawk Network (BHN) has introduced a new way for businesses to distribute customer loyalty rewards.
The branded payments provider’s “Select Codes” offering, announced Thursday (Feb. 15), is a digital “code-to-catalog” that lets businesses distribute codes to customers, who can then swap that code for their choice of electric gift or prepaid cards.
“Our research found that incentives buyers are looking for innovative products that create meaningful connections with their employees and customers,” Jeff Haughton, BHN’s senior vice president for incentives, corporate development and strategy, said in a news release.
“Also, recipients want rewards and incentives that provide the most choice and are easy to use. We are delighted to respond to these demands and kick off the new year with the launch of Select Codes: a convenient, flexible and fast way for businesses to give rewards,” Haughton added.
According to the release, the program lets recipients use their code to redeem an eGift (or eGifts) or virtual prepaid cards from a wide selection of brands, though they can also redeem for one of BHN’s multi-brand gift cards such as One4all.
Rewards can also be split, with the value of the code divided among multiple eGifts. And businesses can curate their own Select Codes catalog, “choosing from the extensive selection of BHN digital gift cards and prepaid cards to build a unique rewarding experience,” BHN said.
Recent research by PYMNTS Intelligence and AWS found that consumers value rewards, but prefer rewards that are personalized to fit their preferences.
“Merchants need data-driven strategies to tailor their approach to hit the bullseye with their targeted consumers,” PYMNTS wrote last month. “This not only boosts consumer engagement but also ensures loyalty, especially in a competitive market.”
In addition, the research found that customizing offers according to a consumer’s needs and interests can double their likelihood of switching merchants. Personalized offers can inspire consumers to move away from their usual routines and patronize new merchants, especially for the sake of the offer.
“Leading this trend are millennials, with 41% expressing a likelihood to switch for better personalization,” that report said. “Following closely are Generations Z and X, at 34% and 26%, respectively. Baby boomers and seniors show the least inclination to switch merchants based on offer personalization, yet approximately 1 in 8 individuals from these groups would still consider making the switch.”
BHN’s new offering comes amid a busy few weeks for the company. Last month, Blackhawk announced it was acquiring B2B gift card firm Tango Card.
And on Wednesday (Feb. 14), the company expanded its partnership with virtual gaming platform Roblox to offer digital gift cards in a number of new currencies.
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