Gift cards are the most versatile gift. If you’re shopping for a picky friend or for that one person who has everything, a gift card guarantees they’ll get a gift they love! Gift cards are also a great business incentive because they ensure sales and increase brand awareness.
Electronic gift cards (EGC) are especially popular in the world of eCommerce because they can generate immediate returns for businesses. The projected market value of gift cards is actually expected to reach a whopping $510 billion by 2025
When it comes to marketing strategy for eComm, getting creative with gift cards adds a unique flavor! CAKE has been busy taste-testing and sampling all the ways eCommerce brands can incorporate gift cards into their rewards program.
We know your mouth must be watering, so dig in to learn how your eCommerce brand can use rewards programs with electronic gift cards. But make sure to save room for dessert because CAKE has a surprise sweet treat to top it all off!
Incentive to Join
One way your brand can use gift cards to its advantage is to offer EGCs as an incentive to join the rewards program. For example, consider even a $5 to $10 EGC for any shopper who signs up to become a member of the rewards program. This could be a part of your brand’s Black Friday or Cyber Monday deals or as a special holiday promotion.
Either way, this is a sharp way to build your customer base, engage users’ interest in your brand, and grow your rewards members.
When it comes to reaching and reeling existing rewards members, email is the way to go! Feature your brand’s gift card(s) in email campaigns to customers belonging to your rewards program. Promote the EGCs as anything like, “The perfect holiday gift” or even “The best way to shop Black Friday/Cyber Monday sales.”
However you choose to push your EGCs, build your campaign around the goal of enticing rewards members to purchase a gift card either for themselves (for a seamless shopping experience) or for another. Remember, gift cards are a versatile and neutral gift, so really push this advantage – especially around the holidays!
Giveaways and Sweepstakes
Your brand could also feature EGCs as the prize for giveaways and sweepstakes. Hosting an enter to win for rewards members incentivizes customers to join! Simply require shoppers to sign up for the rewards program to automatically be entered to win a gift card.
This sort of raffle not only entices shoppers to join your rewards program but also builds loyalty amongst your existing customer base. It demonstrates your brand is willing to reward customer loyalty, adding value to the business-to-consumer relationship and experience.
Special Offers for Members
Building strong customer relationships is the secret ingredient to acquiring their loyalty. That’s why it’s not a bad idea to show your rewards members just how much your brand appreciates their business. Pro tip: Extend a gift card to rewards members. This gesture will not only boost your sales but will also strengthen customer loyalty.
You could also designate the EGC amount in increments based on the number of years a customer has belonged to the rewards program. For example, a $10 gift card for new members, $20 for first-year members, $50 for second-year members, and so on.
This special offer could even be a part of your holiday promotions, serving as a “free gift” for rewards members. Nothing says happy holidays like a gift card for your most valued customers.
Incentives to Spend
Regardless of how you choose to incorporate electronic gift cards in your rewards program, a sure way to see success with this strategy is to give your customers an incentive to spend. For example, when rewards members spend X amount of money, they can receive a gift card with X amount of dollars. This incentive encourages shoppers to make purchases in order to earn a gift card, which will give your brand’s sales a good boost while also enhancing the customer experience.
Something Sweet: 3 Creative Ways for Customers to Earn
We hope you saved room for dessert because CAKE has kept the best for last. The grand finale: Here are three unique ways your rewards customers can earn a gift card.
Spend to Earn
The concept of spending to earn requires a point system in which rewards members will earn a point for every dollar amount they spend (For example: $5 = 1 point). When it comes to EGCs, they can function within a point system like a debit card. This means, once reward members earn a designated number of points, they can then transfer these points (as dollar amounts) to an EGC they can then use to make purchases.
This strategy, again, functions as an incentive for rewards customers to make purchases in order to earn points and, eventually, a gift card.
You could also consider offering EGCs in increments. For example, when a rewards member spends $100, they earn a $20 gift card, or when they spend $200, they earn a $50 gift card. This way, customers are essentially “leveling up” and working (or, spending, rather) to reach the next level. Then, once customers spend a designated amount, they earn an EGC with a corresponding quantity.
Refer a Friend
Campaigns that require customers to refer a friend in order to claim rewards are a great way to grow your customer base and encourage sales all while spreading brand awareness. Invite rewards members to share with a friend (by providing them with a unique code for their friends to use at checkout, for example), and compensate their effort with a gift card. Another idea is to designate the dollar amount on the EGC based on how many “friends” rewards members actually reach.
Points to Purchase
The third and final idea your brand can consider is allowing rewards members to use their earned points to purchase a gift card instead of simply putting them towards products. This creative strategy would be especially favorable around the holidays, as rewards members could consider putting their points towards purchasing an EGC to gift to a friend or loved one.
CAKE Is Always a Good Idea
Our team at CakeCommerce is always cooking up creative ideas and marketing strategies. When it comes to eCommerce, no one does it quite like CAKE! Contact us to learn more about our services.