Gift cards increase customer engagement, generate cash flow and stimulate additional purchases while simultaneously creating the endowment effect for loyalty and brand advocacy.
Use of a digital promotion management system makes optimizing gift card campaigns simple with real-time tracking and reporting, as well as gathering data about gift card buyers to build target audience segments for future promotional efforts.
1. What Are Gift Cards?
The gift card can be effective tools to sell products for small-sized businesses, motivating early purchases as well as welcome new customers. When you adhere to the most effective practices for gift card distribution, maximum potential of this marketing method is realized.
Retailers, restaurants, barber shops, airlines and hotels – among other businesses – can all reap the benefits of offering gift cards to their customers. To begin offering them, set up gift card options in your POS system or e-commerce platform and test different gift card amounts offered, checkout experiences for purchasing them and promotions for gift card sales (sales). Observe year-on-year sales results to identify what works best for your business.
2. Benefits of Using Gift Cards During Sales Events
Gift cards drive revenue for your business by drawing new customers in and turning them into repeat buyers. In addition, gift cards speed up transactions by eliminating cash and checks at checkouts – increasing customer retention while simultaneously speeding up checkout time.
Incentivize larger purchases during slow times or holiday sales events with special bundle promotions such as, “Buy a $100 gift card, get a $10 bonus”. This strategy has proven particularly successful.
Reach the self-indulgence trend during holidays, birthdays and other special events by advertising gift card offers on social media or email. Offering referral rewards (such as $5 off their next purchase) further ensures increased loyalty from consumers.
3. Where to Buy Discounted or Bonus Gift Cards
Gift cards can be an effective way of drawing in new customers, especially when promoted on social media. Such campaigns help generate brand recognition while simultaneously increasing customer average ticket values over time.
Another effective approach to attract new shoppers during non-peak hours or days is offering early bird specials for gift card purchases. Doing this can bring in new buyers at the right time!
Promoting gift cards through marketing emails is also a great way to keep customers’ loyalty accounts active, increasing the chance they’ll return for future purchases at your store.
4. How to Maximize Savings with Gift Cards + Sales
Gift cards can be an extremely lucrative revenue source for retail businesses, helping increase sales, improve cash flow and bring in new customers. Utilizing technology that effectively manages this data source will also assist in making wiser business decisions.
Customers frequently spend beyond the value of their gift card, generating additional revenue for businesses. This trend becomes particularly noteworthy during seasonal events when even small increases in spending can significantly boost revenue figures.
Make sure that your online store promotes gift cards prominently both online and in-store (check-out counter or other POS displays). Leverage email marketing campaigns, social media posts and influencer partnerships to reach more people with your gift card offering.
5. Best Online Stores to Use Gift Cards During Sales Events
Gift cards can be an excellent way to attract new customers at sales events. Offering them as incentives to join loyalty programs, referral rewards or giveaways increases response rates while decreasing lead generation costs per lead.
Gift card sales can be especially profitable during holiday season when shoppers need last-minute presents. Make sure your business is ready by providing a robust gift card system which allows for balance checks, reloads and regifting capabilities.
Personalize customer experiences easily by offering different card designs and packaging options for physical or digital cards, plus including personalized messages in email or phone notifications of gift card receipt.
6. Stacking Gift Cards with Other Promotions (Coupons, Cashback)
Gift cards are an effective way to promote your brand and drive sales growth, while simultaneously helping reduce returns and associated costs, providing benefits for small and mid-market retailers alike.
Make sure that customers see your gift card promotions clearly at checkout (check-out counters in physical stores and customer baskets on e-commerce sites), by stacking offers and creating loyalty programs. Doing this will maximize gift card sales.
Crafting attractive and brand-representative gift card designs is essential to drawing customers in and increasing sales. Leveraging social media influencers for announcements or giveaways is also an effective strategy for reaching new customers.
7. Common Gift Card Pitfalls to Avoid
Gift cards may seem safe and straightforward, yet they present several unique challenges for consumers and companies alike. Customers may misplace or forget their cards while companies often fail to track and report on them accurately due to lacking a dedicated line item for gift cards within their cost buckets.
Fraudsters can alter gift cards to gain money or credit card numbers. By scratching off codes on the back or pulling out an activation pull tab, these fraudsters can compromise them to their own advantage before selling the card on for profit.
Sellers should only use reliable gift card sales platforms to prevent being defrauded of money they deserve. Some platforms deduct hidden fees, reducing how much sellers receive for their gift cards.
8. How to Check Gift Card Balances & Expiration Dates
Validators for gift cards make it simpler for users to verify the balances and expiration dates on the gift cards they purchase, helping to stop expired or forgotten gift cards from becoming unusable.
The majority of gift cards have an expiration date which needs to be observed. To ensure that your gift cards don’t expire in the future, make sure you utilize them within a short time after purchasing.
There are many states that have laws which control gift cards as well as the expiration dates, fees as well as refund policy to protect consumers and make sure they get what they bought and protect it against theft and fraud.
9. Reselling or Donating Unused Gift Cards
The gift card can be effective tools to sell products for small-sized businesses, motivating early purchases as well as welcome new customers. When you adhere to the most effective practices for gift card distribution, maximum potential of this marketing method is realized.
Introduce a loyalty program that rewards customers who purchase gift cards. This will encourage repeat purchases and strengthen brand recognition.
Make sure your customers know where they can check their gift card balance and expiration dates (such as a retailer website or dedicated phone number). Many charities accept unused gift cards; reach out to local organizations such as homeless shelters or public schools to see how you can donate them.