The retailer with the best digital gift card program is…

Beauty giant Sephora scores the highest when it comes to online gifting.



That’s according to RSR Research’s sixth annual digital gifting benchmarking report. Sephora came out on top, scoring 55 points out of a possible 66 points, followed by Starbucks (50.5) and The Home Depot (46.5). Rounding out the top five: Dunkin’ Donuts (44.5) and Amazon (43). (The top 25 retailers in the study are listed at the end of article.)



Sephora achieved top marks this year due primarily to consistently excelling across the study’s three major categories of criteria: discoverability, purchase experience and recipient experience. RSR Research updates the criteria used for for evaluation every year to highlight differentiating capabilities, rather than the features that have become industry standards.



Of the 100 merchants evaluated in the study, “Digital Gift Cards In 2016: Where Omni-Channel Strategy Meets Customer Expectations,” 81 offered digital gift cards. In addition to focusing on the importance of mobile, this year’s report includes new evaluation criteria like omnichannel payment, bulk buying and the ability to purchase cards with credit card loyalty program points.



“Consumers are increasingly engaging with retailers through digital channels first, creating a demand for the retailer to be where the customer is,” said Nikki Baird, managing partner at RSR Research. “Retailers need the capabilities to handle all the things a customer wants from them when they are online and on mobile, and that includes gift cards. We’ve learned over the years just how complex digital gifting is on the desktop. This year leaders excelled at mobile. However, too many of those evaluated are continuing to struggle with mobile optimization of their programs.”



Here are the rankings for the top 25 retailers in the study:

Company	Total Score
Sephora	55
Starbucks	50.5
The Home Depot	46.5
Dunkin' Donuts	44.5
Amazon	43
lululemon athletica	41.5
Bed Bath & Beyond	41
Williams-Sonoma	41
J.C. Penney	41
The Cheesecake Factory	40.5
Gap	40
Best Buy	40
Subway Restaurants	39.5
Sears	38
Dell	35
TGI Fridays	35
Crate and Barrel	34.5
Panera Bread	34.5
IHOP Restaurants	34.5
Toys"R"Us	33.5
REI	33.5
Target	33
ascena retail group, inc. (Ann Taylor)	33
QVC	33
Barnes & Noble	33

The full study, which includes details about what went right and what went wrong in the buyer and recipient experiences, as well as actionable advice for strengthening gift card programs, can be downloaded from the CashStar website.