Gift cards: The opportunity for retailers to increase sales and brand awareness

Gift cards: the opportunity for Retailers to increase sales and brand awareness

Gift cards: The opportunity for retailers to increase sales and brand awareness

Gift cards: The opportunity for retailers to

increase sales and brand awareness

Gift cards and vouchers are valuable marketing tools. Customers can be specifically stimulated to buy with you. There are also many other advantages for traders. We will tell you why you should offer gift cards.


Advantages for Retailers in using Gift Cards

Gift cards and vouchers can be used flexibly and address all types of target groups worldwide: young or old, male or female. They are a popular gift and thus contribute to this since they are more personal than cash, but still give the recipient the freedom to choose. In addition, you contribute to the visibility of the brand as a recommendation tool, as loyal regular customers in particular continue to give away gift cards.

Acquiring new customers, strengthening customer loyalty and increasing sales

Gift cards and vouchers are the most cost-effective way to attract new customers and increase customer visits to the branches. Owners of a gift card often advertise e.g. other family members and friends.

In addition, customers typically spend more than just the amount of the gift card. Studies show that 69% of gift card holders spend more than the value of the gift card. This effect is known as the “uplift” and represents pure profit for the trader.

Customers who have high-quality gift cards do not spend the full amount of the card on a visit, but instead visit the retailer repeatedly. This strengthens customer loyalty and brand loyalty.

Positive cash flow

Revenue is generated before the customer redeems the gift card. A small percentage of customers let expire the gift card and do not redeem it. This generates pure profit for the brand.

Advantages of digital gift cards compared to physical cards

Digital vouchers and gift cards have the advantage that they can be used completely flexibly. In contrast to physical vouchers, the digital or electronic version in the form of an e-code eliminates the complete logistics of a physical warehouse and the dispatch of the cards. Digital gift cards are available around the clock in real time. An electronic code can be easily accessed via e.g. Email, SMS or similar to be dispatched. The electronic vouchers can be designed individually and sent to end users in a targeted manner. With the digital vouchers you save time, administrative effort, costs and enable a far more extensive use than you would ever achieve with physical cards.

The switch to digital gift cards enables an omnichannel solution that vouchers can be redeemed both at the POS and in the brand’s e-commerce.

Switch to digital gift cards now and use the full potential of gift cards.
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Article by Katharina Meyer, Business Developement Manager DACH, for Amilon