Encourage Customers to Buy More: Offer Gift Cards as a Promotion
Gift cards are a big hit, particularly during the holidays, because they make gift giving easier and consumers love them. But the value of gift cards isn’t limited to their popularity as gifts. Giving gift cards away to customers as a part of marketing promotions is also an effective way to increase sales, boost profits, create a competitive advantage, and encourage repeat business. For example, you can entice your customers by telling them that you’ll give them a $10 gift card if they spend $50 at your store. Not only will this encourage them to buy more from you, it’ll also encourage them to return to your store to shop.
Pad Your Bottom Line
Gift card holders tend to spend more than the card value and purchase items at full price, which means more profits for you. Another important point to consider when deciding whether to offer gift cards as rewards is that between 10-15% of gift cards are never redeemed. This means that some of your customers who receive gift cards will never actually use them.
Acquire New Customers
Giving gift cards away during marketing promotions is also a great way to acquire new customers. These days, people are looking for any advantages available to them when they go shopping.
If you offer people a free gift card in exchange for their business, they are far more likely to become your customers. Offering free gift cards will also help your business stand out and get the attention of customers who would otherwise go with one of your competitors.
Gift cards can also help you attract new business because the people who receive them may give them away to their friends or loved ones as gifts instead of redeeming them. As a result, giving gift cards away could potentially help you attract new customers.
Marketing promotions that offer free gift cards are appealing to consumers because consumers can use the gift cards to get whatever products they want. Gift cards are also a popular reward because they’re flexible. Customers can redeem their gift cards any time and at any participating store.
Obtain Precious Data
Gift cards allow merchants to electronically track consumer behavior. For example, retailers can track the balance of gift cards, as well as how frequently customers use them. Other types of gifts and rewards do not offer merchants insights into their customers’ purchasing habits. You can even track down customers who received gift cards from you during past marketing promotions and remind them that you’re launching a new promotion. Doing so will help to increase sales.
Although gift cards are an effective giveaway for marketing promotions, launching successful gift card programs requires a significant amount of time and effort. The wealth of customer data that gift cards provide is certainly valuable, but it will take time to sort through it all. To maximize the results of your gift card marketing efforts, make sure that someone in your company has a sufficient amount of time to devote to their administration.