Gift cards are the ideal gift during the holiday season. They’re a convenient go-to for customers. They always fit, are always in the right color, and they are an ideal gift for people you know well and people you’re just getting to know. Gift cards also make terrific employee gifts, thank yous and bonuses.
Gift cards are appealing to shoppers, especially for last-minute, hard-to-shop-for, or out-of-town gifts. If you sell online and offer gift cards, you can capture out-of-town buyers as well.
Gift cards can also be a gateway to future sales, new customer acquisition, and increased brand visibility.
Boring rectangle cards are out. Instead, create an appealing gift out of them and include some upsells to facilitate purchases. Consider including a small, festive item with each gift card purchase as a value-add or offer a discount on a small item with a gift card purchase, such as buy a $25 gift card, get this ornament for an additional $2. Show them bundled together at the cash register to capture impulse buys.
Offer bonuses based on gift card spending levels (e.g., “Buy a $50 gift card, get a $5 bonus; Buy a $100 gift card, get a $15 bonus.”)
Promote these offers on social media, in-store, and on your website to draw in more shoppers. This type of tiered bonus encourages higher gift card purchase values and attracts customers who might want to gift (or keep) the bonus card.
Collaborate with nearby or complementary businesses to create a joint gift card package. Create a gift card deal that adds value and introduces each business to new customers.
You would need to work out payment arrangements with the other business. This type of partnership can also increase foot traffic, foster local exchanges, and offer an exciting, unique gift idea for shoppers.
Perhaps you can include a mystery discount or reward with each gift card purchase valid after the holidays. For example, a restaurant might offer a “mystery envelope” with a surprise discount for January or a “buy one get one free” offer for a future visit.
This encourages repeat visits in the new year, provides post-holiday sales boost, and builds excitement around gift card purchases.
While gift cards make ideal gifts, they don’t market themselves. Local shoppers may not realize you have a gift card.
Run a social media campaign informing people that you sell gift cards as well as any specials you’re offering. Post stories, photos, and videos to draw attention and drive sales. Get creative with photos of bundled gift cards, reels of mystery bonuses being revealed, or countdowns to encourage last-minute purchases.
Use attractive in-store signage and point-of-sale promotions to bring attention to your gift cards. Create holiday-specific displays near the checkout area to capture impulse buys.
Gift cards are a great way to assist people in finding easy holiday gifts, but you also want to create a campaign to help convert those gift card recipients into loyal customers. You can do this by offering discounts or exclusive offers for their next visit. Additionally, you can place a message on the gift card about being eligible for a discount if they join your email list. That way you can continue to nurture the relationship even after the gift card is used.
Don’t think of gift cards as boring. They are an excellent source of revenue and can provide quick assistance for desperate customers. When implemented strategically, gift cards can provide immediate holiday revenue and long-term customer engagement.
Ray Pucci is the president of the Delaware County Chamber of Commerce. The Delaware County Chamber of Commerce believes that healthy communities begin with prosperous businesses. By taking action in key areas - ADVOCATE, CONNECT, and GROW - we are the unified voice of business for the improvement of our communities. Visit delawarecounty.org for more information.
