How to Make the Most of Your Gift Card ProgramSabine Konhaeuser
How to Make the Most of Your Gift Card Program
In order to optimize your gift card program, you need a clear strategy—one that’s easy to execute and scale. It’s no secret that gift cards are an evergreen payment method; their enduring popularity can be traced back to how convenient (and fun!) they are to give and receive. But unless they’re effectively marketed, they have a tendency to get lost in the shuffle of a bigger-picture business plan, existing indefinitely as an under-realized revenue stream.
Fortunately, this doesn’t have to be the case. Once you’ve integrated gift card functionality into your payments flow, the only thing left to do is put a solid strategy in place to maximize profits. Ready to get started? Here’s what we’d recommend:
1. Market your gift cards both in-store and online.
First things first: You need to maximize visibility. Display your physical gift cards where your customers are most likely to notice them—they should be as accessible and enticing as possible. (Hint: The checkout counter is an especially tempting location.) Cross-merchandize them with other relevant items (for example, if you’ve set up a holiday display, why not add a gift rack to that section as well?) and encourage your employees to suggest them to customers whenever it’s natural to do so. And don’t forget to market your gift cards on your website! As long as you’re using an omnichannel payment platform, this should be a hassle-free integration that encourages consumer spending.
2. Optimize your refund process.
Stop losing out on credit card and cash refunds by offering the money back to your customers on gift cards instead. Think about it: While not every shopper will choose this option, you can count on the transactions of those who do as guaranteed sales. And because most consumers overspend their gift cards, you can turn what would have been a net loss into a net profit.
3. Choose a thoughtful card design.
A beautiful gift card design can transform the brand interaction for your customers. If you’re at a place where it makes sense to consider a redesign—or if you’re just getting started and want to set the right tone from the very beginning—you should be as intentional as possible in your color, font, and image choices. Go with a gift card printer that abides by fundamental design principles and uses the finest quality materials. High-end branding will make the purchaser of your gift card more inclined to go through with the sale.
4. Run promotions.
Once you have an efficient gift card management platform in place, the upselling opportunities are nearly limitless. If you’re working to build up your customer base, you can offer them as refer-a-friend rewards. (This will incentivize your already-loyal clients to spread the word to friends, family, and other business owners.) Similarly, if you’re trying to convert hesitant or last-minute shoppers, you can strategically advertise gift cards through a drip campaign. You can also promote them on social media, in giveaways, or via a tiered loyalty program.
When you decide to offer gift cards to your clientele, you’re tapping into a multi-billion-dollar niche. By focusing on commercial visibility, refund optimization, effective design, and buzzy promotions, you’ll boost sales, build brand awareness, and maximize this revenue stream.
Still looking for the perfect gift card management platform? Cardknox offers a seamless, omnichannel solution. From issuance to redemption, we’ve made gift card tracking simple and intuitive, and—perhaps best of all—we can provide comprehensive, as-needed support each step of the way.