Offering your company’s customers an incentive can significantly increase response rates, but it can also cause issues if not done properly. By being thoughtful and smart about the consumer incentive strategy, your company can safeguard its time and resources. There are smart ways to increase response rates from your company’s customers, including using gift cards as a consumer incentive. In order to be successful, there are several best practices your company needs to include in the marketing strategy.
Consider Your Budget
Once your company makes the decision to invest in gift cards as a consumer incentive, it is also important to consider the budget needed. This requires that you know what your company can afford and how many gift cards that equates to. For example, if you can only afford to provide 500 gift cards to your consumer base, do not market the incentive once the limit is reached. This could cause a scenario where you can’t offer the incentive to your customer’s that were promised a gift card and can create distrust and negative customer experiences.
Be Thoughtful About Your Audience
Once a budget is set and approved, the next step to set your strategy up for success is to choose your audience and the type of gift card to offer them. To do this, make sure your company keeps your audience’s motivations front and center. Does your consumer base love to travel? Offer a travel gift card. Do they love electronics and are a population of serious techies? Try a consumer electronics gift card.
What you do not want to do is choose a gift card that will not motivate or excite your customers. If you are not sure what your customer base would like, you can always be safe and go with a Visa gift card promotion. This is a good back up option since most people would love a gift card that is usable at multiple locations for a variety of items or services.
Decide on Timing and Delivery Channels
Now you have your audience, you know what type of gift card they would like, and you have a set budget. Your company is ready to move the strategy into motion, right? Not so fast, you still need to consider when to run the gift card promotion and how consumers will receive it.
You need to make sure that the gift card is easy to receive and use. Are you going to physically mail the gift card or will it be digital? Will they receive it right away or only after completing more steps? It is good to remember that typically gift cards offered up front are known to increase response more effectively than those promised for completing additional steps. This is not surprising, since consumers do not want to put in extra effort; they want rewards for their normal behavior.
Controlling Incentive Integrity
When your company runs a successful gift card incentive, chances are a few consumers will try to get more than one. They may even attempt to collect multiple gift cards by completing duplicate purchases. To avoid this type of behavior, and to keep your promotions fair for all your consumers, be sure that you have taken steps to ensure quality control. This could be as simple as stating in the gift card terms that there is only one per customer, not one per transaction, or setting up specific software to track instances of multiple redemption.
Also, if your efforts are only targeting specific audiences, double check that consumers from only that audience are getting the gift cards. A simple glitch or misplaced message could compromise the entire gift card strategy. It is not a likely scenario but one that should be thought about beforehand in order to avoid it from happening.
By being smart and using these best practices, your company gift card consumer incentive could really help generate revenue and widen your consumer base. No matter what gift card you choose for your company’s efforts, it’s clear that adding desirable, unique gift cards to your strategy has the potential to increase response rates. Contact Mpell Promotions to find out more!