Digital Incentives: How Connected are Your Recipients?

Connectivity impacts your recipient experience when sending digital gift cards for reward or incentive programs.

Internet and mobile penetration may seen ubiquitous, but careful consideration of your target audience will help you decide whether digital gift cards are best suited to meet your business goals.

Demographics

Internet and mobile connectivity vary significantly across demographics. Until you have a better understanding of your target market, useful generalizations can be made by looking at demographic trends.

87% of Americans use the internet. Generally, getting a digital gift card will not be a problem for most US recipients. The number of American internet users rockets to 97% for those between 18 and 29, 99% for those who make more than $75,000 a year, and 97% for those with at least a college education.

Conversely, American internet use plummets to 57% for those over 65, 76% for those with a high school education or less, and 77% for those who make under $30,000 (stats taken from Pew Internet Project).

Mobile follows a similar pattern to internet connectivity. 90% of Americans have a cell phone, and 58% have a smart phone. Age, income, and education are all positively correlated with mobile connectivity. (stats taken from Pew Internet Project)

Age, income, and education all indicate connectivity. If your target audience is young, affluent, or educated, connectivity is not a significant barrier to digital gift incentives. Further, digital gift cards are more likely to be preferred as incentives by these more 'connected' segments.   

Values, Attitudes, and Behaviors 

A detailed understanding of your target audience, including their values, attitudes, and behaviors, can help you further understand the impact connectivity will have on your recipient experience. For example, early adopters are more connected, and they value novel digital experiences. For them, mobile redemption would be a positive experience.

Conversely, people who value tradition are less connected, more likely to value tangible non-cash gifts or physical gift cards. Digital natives, those who comfortably engage in social activities online, are always connected.

Their connected nature shapes their behavior: they would be more likely to share news of their incentive with their friends, take additional actions online, or use a digital gift card at an online retailer - all you need to do is ask. A digital experience, including a digital gift, would be very effective in this group.