Customer Loyalty with Gift Cards: Perfect Together
It pays to retain your loyal customers, but how much? Consider these statistics:
- Studies show that it costs a business 5-25X more to acquire a new customer than to keep an existing one.
- On average, current customers spend 67% more than new customers.
- As a thank you for their loyalty, 61% of customers say they prefer a gift card over a coupon or bonus.
- $59 is the average amount customers spend over the original value of the gift card.
It’s easy to see why customer loyalty programs pay for themselves – marketing costs are lower when targeting existing customers and there’s a higher likelihood that those customers will spend more, which is nearly guaranteed with a gift card. And you’re rewarding customers with something they really want so they have a reason to return.
Give Your Rewards Program a Boost
Providing gift cards through rewards programs can take many forms. Some programs allow customers to earn points for dollars spent, which can be redeemed for gift cards to your business. Another simple way to incorporate gift cards into your customer loyalty program is to offer a gift card to customers at your anniversary or another special occasion. If a customer is in to buy a gift card as a gift for someone else, invite them to your rewards program to increase your chances of repeat visits.
Social Media Contests
When connecting your business with your target audience, social media platforms such as Facebook and Instagram are great tools. Contests on social media are popular and everyone loves the chance to win! Offer a high value gift card in exchange for a few simple actions to enter the contest, such as having customers/followers comment on the post, repost it and tag friends. Tagging friends also has the benefit of reaching more people and gaining new customers.
Pair Discounts and Gift Cards
A lot of businesses offer discounted gift cards around the holidays or at certain times of the year. Since we already know that customers overspend the value of the gift card, you could offer gift cards at a reduced price when purchasing a certain denomination (for example, $100 for $90). Or offer a discount on the purchase when paying with a gift card.
BirthdayPak partners with local businesses to give affluent women what they really want for their birthday – gift cards to restaurants, spas and boutiques! Many recipients are pleasantly surprised to see gift cards to their favorite establishments and new ones they have been wanting to try. In this way, BirthdayPak helps your customer loyalty efforts and brings new traffic to your business!
Gift Cards: So Much More Than Gifts
We’ve made the case: Gift cards aren’t only for last-minute holiday and birthday gifts! Leverage their power to increase customer loyalty, engagement and brand awareness. Gift cards and a positive service experience will keep customers coming back for more. To start the conversation about partnering with BirthdayPak, visit BirthdayPak Gifting or contact us. We also have exciting franchise opportunities available! To learn more, visit birthdaypakfranchise.com or schedule a call.