How to Measure ROI and Track Success of Your Employee Gift Card Program

Employee gift card programs are a powerful way to recognize and reward your team, but how do you know if your investment is truly making an impact? Measuring the return on investment (ROI) of your employee gift card program is essential to demonstrate its value, optimize your strategy, and ensure your recognition efforts drive real business results.

In this article, we’ll guide you through a practical framework for tracking the success of your gift card program, highlight key metrics, and show how Assembly’s soon-to-launch self-service gift card platform makes recognition easier and more impactful than ever.

Why Measure ROI for Employee Gift Card Programs?

Gift card programs can boost morale, increase engagement, and reduce turnover—but only if they’re well-executed and aligned with your business goals. Measuring ROI helps you:

• Justify your recognition budget to leadership
• Identify what’s working (and what’s not)
• Optimize your program for maximum impact
• Demonstrate the tangible value of employee recognition

Step 1: Define Success Metrics

Before launching or evaluating your program, decide what success looks like. Common KPIs include:

• Employee Engagement Scores: Use pulse surveys before and after program launch to track changes.
• Retention and Turnover Rates: Compare turnover rates pre- and post-program.
• Participation and Redemption Rates: Track how many employees receive and redeem gift cards.
• Employee Net Promoter Score (eNPS): Measure how likely employees are to recommend your company as a great place to work.
• Qualitative Feedback: Collect testimonials, survey comments, and stories about the impact of recognition.

Tip: Establish baseline metrics before you start, so you can accurately measure change.

Step 2: Collect and Analyze Data

Gather data from multiple sources:

• HRIS and Performance Data: Track retention, absenteeism, and productivity.
• Gift Card Platform Analytics: Use Assembly’s dashboard to monitor gift card distribution, redemption, and engagement.
• Surveys and Feedback: Send regular surveys to gauge employee sentiment and collect suggestions.

Segment your data by department, tenure, or gift card type to uncover deeper insights.

Step 3: Calculate ROI

A simple ROI formula for your gift card program:

ROI = (Net Benefits – Program Costs) / Program Costs

• Net Benefits: Estimate the value of reduced turnover, increased productivity, and improved engagement. For example, if your turnover drops by 5% after launching the program, calculate the cost savings from reduced hiring and training.
• Program Costs: Include the cost of gift cards, platform fees, and administrative time.

Example:
If your program costs $5,000 and you save $10,000 in turnover costs, your ROI is (10,000 – 5,000) / 5,000 = 1, or 100%.

Step 4: Interpret Results and Optimize

• Compare Pre- and Post-Program Metrics: Look for positive trends in engagement, retention, and participation.
• Benchmark Against Industry Standards: See how your results stack up to similar organizations.
• Identify Areas for Improvement: If certain departments have lower participation, adjust your communication or reward options.

Step 5: Continuous Improvement

Use your findings to refine your program:

• Experiment with different gift card values, categories, or delivery methods.
• Solicit ongoing feedback from employees.
• Align recognition with company values and business goals.

How Assembly Makes Measuring and Managing Gift Card Programs Easy

Assembly’s new gift card program is designed for flexibility, ease of use, and maximum impact:

• Free to Sign Up: The first tier is free, and gift card features are included in all paid plans.
• Self-Service Gifting:
  
  • 1:1 gift cards (free)
  • 1-to-many gift cards (free), with group signing
  • Automated company-wide gifting (contact sales)
• E-Cards & Kudo Boards: Create customizable, animated e-cards for occasions like birthdays, anniversaries, retirements, and more. Recipients can receive via text, email, or within the platform, and send a thank-you back.
• Flexible Gifting Options:
  
  • Send money for use across the entire catalog or specific categories
  • Curate rewards from multiple catalogs
  • Send traditional gift cards or company swag
• Delightful Receiving Experience: Animations and interactive features make recognition memorable and meaningful.

With Assembly, you will soon be able to easily track participation, redemption, and engagement—all in one place—making it simple to measure ROI and continuously improve your program.

Ready to See the Impact for Yourself?

Schedule a demo with Assembly today and discover how our self-service gift card platform can help you build a culture of recognition, boost engagement, and deliver measurable ROI.

FAQs

How do you measure the ROI of an employee gift card program?

To measure ROI, track key metrics like engagement scores, retention rates, and participation before and after launching your program. Calculate ROI using the formula: (Net Benefits – Program Costs) / Program Costs. Use data from surveys, HRIS, and your gift card platform to assess impact.

What are the best metrics to track employee recognition success?

The best metrics include employee engagement scores, retention and turnover rates, participation and redemption rates, eNPS, and qualitative feedback from surveys or testimonials.

How can Assembly help manage employee gift card programs?

Assembly will soon offer a free, self-service gift card platform with features like 1:1 and group gifting, automated company-wide gifting, customizable e-cards, and detailed analytics to track participation and ROI.

What types of occasions can you recognize with Assembly’s gift card program?

Assembly’s program will support a wide range of occasions, including thank yous, retirements, birthdays, anniversaries, congratulations, marriages, and more, with customizable e-cards and gift options.