Brands are constantly looking for marketing levers to engage and convert their audience. Gift cards are one of the most popular tools for boosting brand awareness and encouraging purchases or repeat purchases.
They are widely adopted by retailers, from fashion to restaurants, not forgetting supermarkets. However, gift cards are also used by smaller brands to engage their audience. They are all the easier to mobilise as part of an omnichannel customer experience. They can be physical or digital.
In this article, we’ll be sharing how to strenghten your relationship with your audience using gift cards. We’ll explore ways of gamifying a gift card program and making the experience interactive and engaging.
The explosion of gift cards as a mtehod of payment
In 2024, brands reported an increase of almost 25% in gift cards purchases. Gift cards are no longer reserved for the festive season, when they are given as Christmas presents. It is now becoming more widespread during high points such as sales, Black Friday, Mother’s Day and Valentine’s Day (when consumers want to give pleasure or treat themselves).
Another new development is the dematerialisation of gift cards. Long confined to physical shops, they are now exploding in e-commerce. According to a Global POS analysis, the average value of gift cards activated on the web has riser from €50.73 to €59.56 in 12 months, an increase of 17.42%!
For consumers, they are becoming the preferred method of payment, both in retail and online. The distribution of market shares remains equivalent, with fashion leading the way in terms of usage. Nevertheless, we are seeing an increase in purchases made using this methods of payment during the sales period, demonstrating the growing importance of gift cards in consumer habits.
What are the advantages of gift cards for brands?
A significant increase in revenues
Gift cards are an opportunity for brands to increase their sales. This is an advance payment that is not always used by its holders. According to CEB TowerGroup, 10% of gift card balances remain unused, which represents a considerable margin. In one year, a brand like Starbucks can make a profit of 1 billion dollars from unused gitf cards. Buyer who use these cards generally spend more than the initial amount,increasing the company’s revenues. 61% of consumers who opt for this payment method spend more than thier balance.
An opportunity to acquire new customers
Many of the customers who buy a gift card are new customers. It is therefore a lever of brand awareness, which capitalise on recommendations to boost visibility. Overall , gift cards reduce acquisition costs. The brand takes advantage of the visibility and traffic of other brands to raise its profile by placing its gift cards in a distribution network (or on platforms such as my gift card).). C’est d’autant plus efficace quand elles sont affichées à côté de celles d’entreprises comme Amazon ou Netflix.
A lever for customer retention and loyalty
Gift cards improve the shopping experience by offering consumers greater flexibility. They benefit from greater flexibility of choice, and the dematerialisation of cards simplifies their use. This tool can also be a way of strengthening the loyalty program and make it stand out from the crowd. By sending them to customer who cross a threshold (or number of loyalty points), brands can increase the repurchase rate. It’s a way of strengthening the relationship with our most committed customers by rewarding them with an e-card.
A tool for collecting customer data
The use of gift cards enables retailers to improve their customer knowledge. They are able to track purchases and collect data (the time between the purchase of the card and its use, the amount of the purchase, the products or services purchased, etc.).
Dematerialised gift cards, sent via an email campaign (as part of a loyalty program), can be used to refine these analyses.. L’entreprise peut suivre le parcours client et calculer son ROI.
How to gamify gift cards to boost buyer engagement
While the gift card is a tool for expanding and engaging its audience, it remains a competitive arena. To stand out from the crowd, brands can enhance the experience by opting for gamification. Gamification strengthens the interaction between the company and the consumer, through playable formats and attractive rewards. In the context of a gift card program, this can take the form of:
- Interactive promotional campaigns. Playable Marketing is an excellent way of boosting visibility and encouraging audiences to buy gift cards. the brand can launch a gamified campaign on social networks in order to generate leads and acquire new clients. Le format du contests increase the virality of the campaign and makes it more attractive.
- Gamified rewards: shoppers can increase the value of their card or unlock rewards (free goodies, free delivery) by taking part in a marketing game or challenge. The brand can integrate a QR code into its gift card, taking consumers to a winning instant to encourage them to buy one.
Conclusion
Gift cards are all the rage, both in-store and online. They’re ideal for raising your brand’s profile and engaging your audience. To make them more attractive and generate more sales, gamify your shopping experience with our interactive mechanics!
