Gift Card: A needed spice for your Loyalty Program
According to a report collected by MegaPlaza,
- 58.8% of shoppers like receiving gift cards.
- 73.4% of adults decided to purchase at least one gift card for their holiday shopping.
- 65% of gift card recipients spent 38% higher than the face value of their gift cards.
The Gift Card industry in America will continue to grow and will record a CAGR of 9.2% from 2020-2024 even after the disruption caused by the Covid-19, according to Research and Markets.
Starbucks have pioneered the Gift Card game beyond just offering gift cards as transactional services. More than one third of all transactions are done through Starbuck Gift Cards and there are more than 10 million people in the My Starbucks Reward program.
Benefits of using gift cards for the businesses:
They can be used as a cost effective advertising tool to keep your brand on the customer’s top of mind. Digital gift cards are very much cheaper than advertising through humongous billboards.
Increase Holiday Sales
Holidays are the times when customers have the most willingness to spend and giving gift cards on seasonal holidays will allow them to keep coming back to your restaurant and spend more than usual.
It helps in enhancing the customer’s feelings by uplifting them within seconds as who doesn’t like gifts.
Safe and convenient
The gift card will always be present on the customer’s Reciproci app, thus, there is no fear of losing it or forgetting about it.
Enhances Cash Flow
Traditional marketing takes time to get a return on investment whereas gift cards are an easy way to improve the cash flows in a short span of time.
A bird in hand is worth two in the bush
liInvesting in Gift Cards will provide you with advance money at hand, all that would be left for you would be to offer the services.
Your Gift Cards can induce trials with new customers if your existing customer offer it to them hence scaling your business even further
To begin with we should be providing some custom gift cards to our customers who are a part of the Loyalty Program on their birthdays offering them free food items that they order the most using our analytics. This way the customers would love to spread about the restaurant through word of mouth and thus scaling the business.
Gift Card opens up a completely new revenue stream for a consumer facing company. The sales force can sell bulk Gift Cards to other businesses at a commercially attractive rate. The buyer company can distribute these Gift Cards to its employees, stakeholders, and customers at the perceived value rate. Everyone receives benefits as: the merchant who offers the Gift Card gets cash in advance and secures a certain volume of business, the buying business gets a good rate for buying things in bulk, for an expense which was inevitable (but now happens with certain savings) and the end consumer gets the flexibility of using vouchers at a convenience for a perceived value of the goods at MRP. Also the buyer can further give the voucher to someone and or consume it at her own convenience. She does not have the compulsion of consuming the goodies within a short time.
Collaborating with other businesses is a good way to scale your business quickly. Competition is necessary in normal times but in this new normal era the only way to revive our economy or talk on a small scale reviving back your business can only be achieved through Collaborative Marketing. Leveraging the collective marketing skills of the businesses of the same industry will help the entire industry to double the reach without additional spending. We can make use of cross promotions with other local brands by providing Gift Cards to their customers in order to acquire more customers whereas we can do the same for them. It will be a win-win for both the parties!
If you will exchange gift cards with other brands to offer it to respective employees then it will help both the brands in ways like:
- Keeping the employees motivated
- Increasing Brand Awareness and Presence
- Giving them Gift Cards on special occasions like Diwali, Christmas, etc will help you to save on employee reward systems and convert those costs into marketing which will give you double benefits.
- Getting potential leads.
Gamification is a great way to keep your customers motivated to stay connected with the brand. Reward your customers with gift cards on staying connected and loyal. For example, if a customer refers the app to his friends and 5 of them joined then he will be rewarded with a gift card worth Rs200. Or you can provide them a Gift Card for shopping from the outlet 5 times which increases the footfall at stores.
We can also go for Seasonal Approach of Gift Cards. For example, during Christmas we can run a campaign “Ho-ho” where we will distribute these gift cards to customers who will shop for 2000 or above worth Rs 200 which they can avail on their next visit to the restaurant within 2 months. Hence, the diners would love to keep coming back to your restaurant.
By using the above approach in a different way we can target small kids as a Pester Power Marketing where if a family comes for dine-in and orders for Rs. 2000 then we can give away a gift card to the kid, stating that “This toy can be yours. Visit Again!”. The same digital copy of the gift card will be transferred to the Reciproci App. And to avail the toy the family needs to visit again to have a dine-in.
Lastly, we can offer experiences rather than just providing stuff or discounts through the Gift Cards. We can have gift cards as follows:
- Meet your favorite chef
- Have a look inside our Kitchen: where the magic is created!
- Learn some Skills (like, cake decoration, cooking, baking, etc)
- Be a part of our Influencer Events.
What Reciproci has to offer?
- Digital Gift Cards:
Gift Cards on the Reciproci App so that it is convenient to store and easy to carry anytime and anywhere.
- Printed Gift Cards:
To offer special offers to people who are not digitally active, like kids or elderly, the printed gift cards can come really handy. They can also be used to enhance personalization and add aesthetic value to the marketing of the restaurant. Printed Gift Cards also increase the visibility of the brand and thus attracting new customers.
Your gift cards can come really handy for customers who have a great dilemma as to what to offer as a present to their loved ones. Thus, Reciproci provides Monetary Gift Cards. They can choose any amount to enter from the app and gift it anytime either through print or digitally.
Gamified experience to earn the Gift Cards so that the process becomes even more fun and motivating for the customers.
So that you know what suits a customer best while offering a Personalized Gift Card to your customers.
- Experience than just discounts:
Offers customers with Experiences rather than just discounts through our Product Gift Cards.
Reciproci is aimed to provide “traditional business” a digital omnichannel edge over their “born-digital” rivals.
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