We will discuss the advantages of gift card campaigns in this blog article, as well as provide a few instances of actual gift card campaigns. We’ll delve deeper into the campaign’s restrictions and guidelines and examine the copy and creative elements. Start by providing a brief overview of gift card promotions.
Why should you fund gift card advertising campaigns?
Why do gift card promotions occasionally outperform other kinds of sales promotions? While receiving a gift card makes customers feel special, receiving a voucher or cart discount feels more like a sales pitch. In addition, clients are more likely to use a gift card than a sales promotion because of the endowment effect. Since people are aware that they have “free money” to utilise, passing up a sales promotion does not feel like “losing,” but not using it would be.
Given that many gift cards expire before being used, gift cards may be a less expensive incentive from the perspective of shops than other incentives like free merchandise or cashback. A retailer only incurs expenses when a customer redeems the gift card.
The advantages of gift card marketing
You can benefit from providing gift cards to your clients as incentives by:
Due to the endowment effect and customers wishing to take advantage of the incentives, sales will rise and cash flow will be generated.
If offered to new clients, bring in new business.
Encourage impulse purchases because customers are more willing to make additional purchases of goods or services when a portion of the cost is covered.
The typical shopping basket will grow, especially if you require a minimum order amount in order to utilise a gift card.
provide real-time control, tracking, and reporting (if you have a digital promotion management system).
Personalized gift cards that can only be used once, as opposed to publicly accessible promotions, can help you reduce fraud.
Gift cards can be used as incentives in a variety of ways, from growing your client base to resolving customer complaints to other retention, acquisition, or re-engagement techniques. Additional restrictions may be placed on gift cards to assist you in achieving your objectives while preserving your budget. We have examined numerous gift card campaigns and identified a pattern: in order to assure the success of their promotions, most major brands impose some restrictions. You need a strong promotion engine to manage such customised and targeted campaigns at scale. You can run campaigns like the ones stated above and more with the aid of Evolve, allowing you to target and customise your gift card promotions with extreme specificity.