Gift cards are often the first interaction a new customer has with a brand, and retailers must capitalize on this opportunity to convert gift card recipients into loyal, repeat buyers. Here are five effective strategies for achieving this goal:
1. Offer a welcome discount
When a customer redeems their gift card, send them a follow-up email with a special discount or offer for their next purchase. This small gesture incentivizes them to return to your store or website, and it helps create a positive first impression. Consider offering tiered discounts, such as “10% off your next purchase” or “Spend 50€, get 10€ off.”
2. Introduce loyalty programs
Gift card redemptions are the perfect time to introduce customers to your loyalty program. Automatically enroll gift card recipients into your program and offer them bonus points just for signing up. With SmartGifty, you can integrate gift cards with your loyalty program, making it easy to track rewards and offer personalized promotions based on customer behavior.
3. Send personalized product recommendations
After a gift card is redeemed, use the data from that transaction to send personalized product recommendations. Whether through email or on your website, show customers items that complement their purchase, or highlight new arrivals they might be interested in. This not only enhances the shopping experience but also increases the chances of repeat business.
4. Create a seamless customer experience
Ensure that the process of redeeming gift cards is as smooth and straightforward as possible. Customers who have a positive experience using their gift cards are more likely to return for future purchases. This includes offering easy-to-navigate online redemption options and ensuring that in-store staff are trained to assist with gift card transactions efficiently.
5. Upsell and cross-sell during redemption
When customers redeem their gift cards, offer them additional products or services at a discount. For example, if they are using a gift card to purchase a specific item, suggest complementary products that enhance their purchase. Retailers can also create special “Gift Card Bundles” where recipients can use their gift cards for multiple related items, increasing the overall value of the transaction.
By implementing these strategies, retailers can turn one-time gift card recipients into loyal, repeat customers who continue to engage with the brand long after their initial purchase.
