If you are wondering how to increase sales and grow your customer base, gift cards are an excellent idea. Customers love buying gift cards for others and using them at their favorite stores.
Gift card marketing campaigns get the word out about your offerings. Once you develop a few strategies for spreading the news, you are well on your way to generating more revenue for your business.
1. Increase Customer Retention With Gift Cards Through Loyalty Programs
Offering gift cards through loyalty programs is a great way to say “thank you” to customers who keep coming back. It is about giving them another special reason to stay.
Once customers sign up for your loyalty program, they can earn points whenever they shop. As soon as they reach a certain amount, they will receive the gift for being a loyal customer. In turn, customers will feel appreciated, making 88% of them more likely to stay with your brand.
2. Encourage Customers to Spend More to Receive a Gift Card
This strategy works well because people often like to purchase things on a whim. In fact, on average, customers spend over $300 per month just on these last-minute purchases. A store could say, “Buy more and get a free gift card.” For instance, a shopper may plan to purchase a $50 video game, and the store offers a $10 gift card for spending $75. The customer will think, “Why not get something else I want?”
Stores can make the most of these opportunities by setting a spending target above their average sales amount. When you remind customers how much they already buy without planning, you can encourage them to reach the target and earn a gift card. It’s a clever way to help customers feel good about spending a little more, knowing they get something extra in return.
3. Host Gift Card Giveaways on Social Media
Giving away gift cards on social media is a powerful way to create excitement and engagement. Businesses can post on their social media page about a giveaway contest and ask customers to do fun things like:
Share their posts
Share a photo using their product to enter the contest
Word will spread like wildfire online, so it is a great way to get people outside your reach to join the fun. After some time, your business can pick a winner randomly to receive a free gift card.
The key to giveaways is to make the contest fun and easy to enter, and the gift card should be generous enough to get people excited. Once you generate all the buzz about the competition, your business will attract many new customers.
4. Give Gift Cards as Incentives for Capturing Referrals
When businesses want to grow their customer base, they often ask their current customers for help. One smart way to achieve this is by marketing your gift cards as incentives for referrals. Customers are more likely to spread the word about your business because everyone likes getting free money — especially if it is from a brand they already appreciate.
Set up a referral program so you can track who tells new customers about your business. Give each person a special code to share with friends. When a new customer uses the code, the person who shared it gets a gift card.
However, it is important to make the referral process as easy as possible so more customers can sign up for the rewards. Ensure you notify customers by sending an email blast or placing signs in your store’s window.
5. Take Advantage of the Holiday Season
The holidays are the perfect time for stores to step up their gift card game because people are already shopping for friends and family. Plus, 36% of people stated they would be happy to receive gift cards for Christmas in 2022. Businesses can capitalize on this opportunity by catching their eye with a gift card display at the front. Or, they can offer a special holiday deal.
For example, they could offer something like, “Buy a $50 gift card, get a $5 card free to treat yourself!” This makes gift cards an easy choice for shoppers unsure what to get.
Additionally, you could promote holiday-themed gift cards, which make them more fun to give. Since it is a busy time of the year, gift cards are a true time-saver for customers. Your business could run targeted ads or send emails that remind shoppers that gift cards are available for purchase.
6. Place Gift Cards Strategically on Your Site and Throughout the Store
Placing gift cards in easy-to-see spots on a website or in-store increases your chances of conversion. If you are strategic about the placement, customers may be tempted to purchase one for a special occasion.
Online, businesses typically use banner or pop-up ads that take customers directly to the gift card page. You can also put them at the bottom of every page, so no matter where customers are, they are just a click away from buying a gift card.
In a physical store, it is smart to put gift cards near the cash register because that is where people already have their payments ready. Many people may want to add a gift card at the last minute — studies show 46% of people think they do a poor job of gift-giving.
Yet, businesses can also put them in different parts of the store by areas where people typically shop for gifts. This way, when customers are looking at items, they also see the gift cards and think that it could be an easy and perfect gift, too.
7. Use Gift Cards as a Pop-Up Promotion
Using gift cards as a pop-up promotion adds an element of fun and surprise to shopping. Businesses use this strategy when customers are about to leave. Once a pop-up appears, you can provide a gamification touch. You can do so by allowing potential customers to spin a contest wheel and get a chance to win a gift card. This tactic grabs their attention while encouraging them to stay longer or even make another purchase.
Sell More Gift Cards With These Marketing Campaigns
Gift card marketing is simpler than you may think. Whether it is through enticement or emphasizing them during holidays, you will be sure to convince customers to make a purchase and boost sales with these gift card marketing strategies.