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
- 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.
- Merchant should design new gift cards to reflect the “Gift Card with Purchase” promotion.
- 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.)
- 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
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.