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Offering a gift card with purchase is a great way to encourage customers to spend more. A promise of “15% off” is intangible to the customer, but receiving a gift card at the time of purchase or through the mail after the purchase has a more powerful effect. It also dramatically increases return visits.

Tips for creating a successful GWP program

  1. You must have an electronic gift card program. If you don’t already have one, IBF can provide the tools and expertise you need to set up a successful program.
  2. Merchant should design new gift cards to reflect the “Gift Card with Purchase” promotion.
  3. Put an expiration date on the cards, usually 30 days after the program ends, to encourage a quick return visit. (Merchants don’t have to worry about adhering to state escheatment laws as GWP cards are promotional cards.)
  4. Set the minimum purchase required to receive the gift card higher than your average ticket. For example, if the average store ticket is $75, then set the spending level at $100.

Advantages of a Gift Card with Purchase program

  • Cost-effective
    Low costs to start the program only include gift card printing and a small transaction fee. Variable costs are driven by performance of the program.
  • High returns
    Merchants using IBF’s GWP program are consistently seeing 30-40% returns.
  • Increase average ticket
    1) Consumers spend more to attain the promotional gift card. 2) On the return visit, consumers spend 30-40% more because they have a gift card.
  • Flexible program
    A Gift Card with Purchase program can be used to promote certain products, seasonal events, etc. It can be implemented quickly and easily.