You're missing out on an even bigger benefit if you're only using gift card incentives to attract new customers.

Studies show that companies that offer rewards improve customer lifetime value 99 percent more than those that don't. And that's just the beginning.

Forbes predicts that with customers increasingly willing to pay more for a good experience, customer experience will gain even more momentum in 2024.

So, despite the temptation of discounting, building a smart strategy-which includes incentivising with gift cards-is a far better use of your marketing dollars.

Reward those customers who make repeat purchases. After all, they can shop anywhere. Rewards-based promotions also give you the opportunity to engage with your customers in creative ways that demonstrate your brand's commitment to positive user experiences.

Gift card incentives are also a great way to reconnect with former customers and encourage them to purchase or re-subscribe. Give them the experience they're looking for today with a fun promotion that speaks to why they may have left.

Reassuring rewards can help you prevent customers from switching brands after a bad experience. For example, solving a customer's problem and then sending them a voucher to make up for their inconvenience can go a long way towards retention and even help build lifetime loyalty.

And the benefits are yours for the taking. Establish a relationship with new customers - without discounts or promotions eating into your profits.