Everyone has experienced it at some point – that happy feeling of getting a reward or incentive for your loyalty at your favorite store, restaurant or service provider. It could be something as simple as $10 off your next purchase or even some sort of $20 gift card promotions.
While these may sound like small tokens, there is a somewhat inherent satisfaction in being able to walk away from a checkout counter feeling like you’re getting something for being a good customer.
So it could come as no surprise that consumers have reported that their purchasing habits tend to be influenced by gift card solutions and promotional strategies.
Gift Card Promotions – What the Statistics Report
Just over 30 percent of consumers surveyed within the last year report that they have made unplanned purchases at a store that offered customer incentives. Just under 50 percent of consumers surveyed even spent more than they planned to because of the incentives. Here’s the best part of all: nearly all consumers surveyed express their preference for one particular incentive: gift card promotions.
The US Consumer Insights Study has also given insight into the increase of self-purchasing behavior and the role incentives play among gift card users. While some purchasers admit to taking advantage of gift card solutions for self-use, others have said they simply bought a gift card because of the incentive on offer.
The same study has also reported that these very self-purchasers spend an average of $23 over and above the value of the gift card. The upside to these kinds of customer incentives is that when you offer your customers gift card solutions, they will in turn reward you with an even bigger lift in sales returns.
Here’s another benefit: rewards and customer incentives are a great tool for promoting gift card reloading programs to customers. While most customers have reported that they don’t currently reload the gift cards they receive or self-purchase, a substantial number have reported that dollar incentives may well encourage them to do so.
Furthermore, the study showed that reloading tends to drive purchasing behavior. A customer who continues to reload a retailer’s gift card will visit the store, or make use of the services, more often to redeem it. In fact, over half of the people surveyed said they have visited a store more often than they would have owing to the gift card solutions.
More Benefits of Gift Card Solutions
Your promotional strategies also offer the opportunity to drive new messaging, branding and even change purchasing behaviors.
Incentives and Rewards Will Drive Sales
At long last, give card promotions and customer incentives have not only become the most popular gift among customers who shop for themselves, relatives and friends, but they have also become an increasingly preferred tool of choice for those businesses who want to motivate their customers. Strong promotional strategies are not only a great additional channel to drive gift card sales, but also a channel to expand your current customer base.
Running a Gift Card Giveaway
Loyalty, rewards and incentives tend to drive sales. Have you ever considered running a gift card giveaway? Here are a few best practices to take into account:
- Show the amount of the gift card– if you do gift card promotions, be clear how much the card is worth.
- Consider the amount – keep in mind that if the gift card amount is too small in comparison to your average service or product price, you run the chance of people not wanting to spend the extra money. Sometimes it’s worth giving a little more so you can enjoy a good return on your investment.
- Have a follow-up strategy in place – if you’re going to run gift card promotions, such as, asking people to enter for a chance to win a Visa gift card, it’s a good idea to have a solid follow-up strategy in place for people who don’t win. You could try offering a gift card for a smaller value. Perhaps all entrants who do not win could receive a $10 gift card. It’s the small gestures that can get people using your services and products without taking up too much out of your budget. If you don’t really have the budget to give something to everyone, make sure you remember to add entrants to an email list where you can then teach them more about what’s going on in your business and other gift card promotions.
It’s Time to Evolve Your Gift Card Strategy
Given how effective gift card promotions can be, and their proven ability to attract new consumers, build awareness of your brand and drive incremental revenue, it is no surprise at all that most merchants have robust customer incentives in place.
To maximize on the success of such programs, you need to continue to innovate and evolve your efforts to keep pace with consumer trends.
Talk to Mpell Promotions about your promotional strategies today.