Customer loyalty is crucial as it shows how they are willing to repeat their engagement with the business. Moreover, loyal customers usually spend 67% more than regular customers.
According to a recent study, acquiring new customers costs five times more than retaining current ones. And, increasing customer retention by 5% can increase your profits between 25-95%. Gift cards are a fantastic way to improve customer loyalty. This blog outlines eight key ways they can benefit your organisation.
Almost every retailer offers a loyalty program to its customers as it is inexpensive and convenient to utilise gift cards. However, not many can execute sales and increase engagement.
A great starting point is offering customers a gift card on their birthday or, offering them an incentive in conjunction with new product promotion. This will spark curiosity and interest, which will lead to an uptake of new products. Additionally, incorporating digital technology into your business is also advantageous. Take your incentives a step further by introducing digital gift cards to your customers. Digital gift cards can gain attraction as it is accessible and instant when making purchases.
It can be difficult for businesses to gain loyalty as customers tend to look for the best deals when shopping. This should not be an issue as businesses can partner up with other retailers to provide fascinating offers that will provide mutual benefit for both parties.
Partnering with a complementary business can widen the scope of products and services your business can offer. The partnership will drive customers to your business, whilst introducing them to a new brand. This results in a win-win scenario for all parties as profits will increase, and the customers can benefit from various promotions.
When thinking of gift cards, the most common perception relates to holidays. Commonly linked with last-minute gift shopping, it’s no surprise many retailers employ this strategy.
Customers can pick up physical and digital gift cards, even after shipping deadlines have expired. This positions both you and your retail partner as reliable in the customer’s eyes. Due to the ease and accessibility of purchasing a gift card, these customers are likely to return to your business to buy more gift cards for future occasions.
Gift cards are also a great incentive for customers to visit your brick-and-mortar store. Businesses often encourage their customers to redeem their gift cards on a specific day to unlock more benefits, or simply offer a “buy one get another for 50% less” (e.g. Black Friday sale).
Often, gift cards are effective on their own. Nonetheless, customers can forget to use them before the expiry date or lose them. Thus, adding an extra incentive encourages customers to use their cards as soon as possible. This encourages consumers to use their gift cards in-store or online, which creates an increase in engagement between the customers and the brands themselves.
Whether it is feedback or a complaint, a dissatisfied customer is extremely unlikely to make further purchases from your business. Due to their frustrations, most are unlikely to respond in a positive manner when communicating with the brand.
In this case, there are ways to regain their patronage and engagement. Most customers who provide negative feedback will want to witness how businesses are responding. Offering them an incentive or a gift card shows that the brand listens and are apologetic for their disservice to the customer. With this incentive, businesses usually hope to gather more input and develop better strategies to increase brand loyalty.
Being active on social media is an effective way to ensure customers stay engaged with your brand. However, it takes more than just posting graphic visuals and videos to your accounts. Customers often lookout for promotions and giveaways when engaging with brands on social media.
An online competition generates positive word-of-mouth, leading to new followers and an increase in brand awareness. This is a major opportunity for businesses to collaborate and offer digital gift cards.
It is, however, significant for brands to remain active on social media platforms after promoting the online competition. This is to build trust, loyalty and positive engagement during and after the competition ends. Otherwise, customers will think that your business account is a scam, and will spread negative word-of-mouth.
No matter the product category, consumers are always bombarded with many different choices. Pairing your offering with a gift card can help them decide. By offering a gift card with your product or service, customers tend to engage with your brand more due to the added incentive that should not be missed. Ensure you make the deal of a lifetime by making the deal substantial.
Boost your loyalty programs and find out how iGo has helped over 2,000+ businesses in increasing engagement and loyalty. Visit our website or contact us today at 03 8383 6000.