Industry Standards (2025)

• Instant digital delivery is the norm: Email/SMS, real-time redemption, and mobile wallet compatibility expected by customers.  
• Personalization is valued: Over 60% of users now expect personalized gift card experiences (custom messages, themed cards), with AI-driven personalization on the rise.  
• Corporate Gifting Continues: Over 70% of loyalty and incentive programs now feature digital gift cards.  

Emerging Digital Innovations

• Continued expansions of secure eGift options and cross-category partnerships. Visa, Mastercard, and others are highlighting encryption, multi-factor authentication, and real-time tracking.  
• Analytics & AI: Brands are increasingly leveraging AI for campaign optimization, customer behavior tracking, and fraud detection in digital card programs.  

Fraud Mitigation and Rising Costs:

• Fraud Trends: The risk of gift card fraud is still significant. As of 2025, the FTC reports about $228 million in losses from gift card fraud in the past year, up from $128 million in 2020. 
• Fraud Tactics: “Gift card draining,” exploiting physical card vulnerabilities, is highlighted as a driver. Digital gift cards are now preferred for fraud resistance (encryption, real-time monitoring).  
• Cost and Overhead: Digital cards significantly reduce shipping, production, and physical security expenses, allowing for faster and more secure fulfillment. 

Direct Sales Alignment and Marketing

• Sales Team Realignment: Reorganized 2025 sales team structure to focus on geographical relevance to Shell locations for improved efficiency and impact.
• Enhanced Direct Marketing: Implemented targeted email campaigns and cadence to engage direct customers.
• Corporate Customer Campaigns: 

• Re-introduce "Free Shipping" campaigns throughout the year to encourage corporate customers and boost engagement.
• Shell re-activation: Reach outs to all Shell clients who had stepped away or impacted during the California Fraud to reintroduce the Shell product and its enhanced security.
  

Promotional and Partner Collaboration

• Continue Promotional Calendar:  Scrip promotional activities to drive incremental sales across categories.
• Partner Collaboration: Established bi-weekly meetings with InComm and BHN to ensure consistent progress and communication.
• Expanded Distribution: Secured additional InComm and BHN distribution locations for 2025, supported by new card production.

B2B Digital Initiatives

• Actively developing an onboarding pipeline for Shell API Integrations to improve sales velocity for 2026.
• Successful launch of Shell Digital within BHN and Catalog for 2025.
• Continue to identify new verticals to target for 2025 and 2026 within Online Loyalty & Rewards Platforms, Healthcare, and Government Assistance.

Incentive Market Industry News & Trends

• Increase use and understanding of AI: Incentive professionals continue to increase their understanding of both practical applications and the potential uses of AI in 2025, focusing on the most appropriate and effective uses for this tool, how reliable AI is, and best practices around data privacy and security. IRF 2025 Trends Report - Incentive Research Foundation
• Significant Market Investment: According to the Incentive Federation, 84% of U.S. businesses collectively spend $176 billion annually on award points, gift cards, trips, merchandise, and experiential rewards to engage sales staff, employees, channel partners, and customers.
• Budget Growth Outpaced by Inflation: Budgets for gift cards, merchandise, and event gifting are up 37% in 2024, with growth projected through 2025 (Industry Outlook 2024). However, inflation often offsets these increases, limiting real growth.
• Eroding Value of Gift Cards: Rising costs constrain the impact of gift cards. A modest $30 per-person increase in 2024 fails to counter inflation, reducing their purchasing power and effectiveness.
• Tough Trade-offs: To manage rising costs, incentive programs are shortening durations, reducing attendees, or adopting tiered structures. These adjustments often dilute program impact and value for recipients.