Gift cards have been and continue to be one of the best and most popular giveaways that businesses offer. Why is that? Because gift cards not only deliver a new revenue stream for businesses, but gift cards also help to increase consumer awareness, generate brand loyalty, and generate greater product awareness.
Here are some of the eye-popping statistics from CashCard that should showcase the true power of leveraging gift cards in your business.
– A customer is 2.5x more likely to purchase something that is the full price if they are buying it with a gift card.
– 72 percent of customers will be willing to spend more than the face value of their gift card. On average, a customer is willing to spend 20% of the total value on the card.
– 55 percent of gift card recipients end up visiting the store more than once to spend the entirety of what’s on their gift card.
As you can probably tell, these are some statistics that overwhelming favor using gift cards in your business. A social media campaign makes for the perfect way to get gift cards in circulation. What’s better, you can utilize the gift card campaign to get valuable information including their email addresses to market to them further. This helps you build out a valuable email list and build relationships with your prospective customers and customers to create a loyal following.
Here are some of the best strategies that you need to use when you are running this kind of giveaway over social media.
1. Show The Total Amount
One of the main things you need to do when you are running this type of promotion is to showcase the total amount. You need to be transparent about how much the gift card is worth. Whenever you are doing any kind of giveaway, you need to be precise about what they are getting and how much value it is. For example, Cafe DeLuxe was giving out a gift card and they strategically placed the total amount of the gift card two times in the campaign. This way, everyone knew how much they would get if they won.
2. Consider The Amount To Give
You want to ensure that you are creating a campaign that is going to satisfy the participants. How many people will be satisfied if they received a $5 gift card? Chances are not many. After all, a $5 gift card won’t even get you a coffee from a gourmet coffee shop. If you are giving out too little on the gift card especially relative to your product’s average prices, you aren’t going to generate the kind of results you were expecting from your gift card promotion. Not only is it not going to encourage people to participate, but they may not even want to spend the extra amount to buy whatever you are selling. Sometimes, it’s better to give more to see a better return on your investment. Keep in mind, the data is in your favor. After all, 72% of all gift card recipients end up spending over the total value of the gift card. Therefore, you want to strategically choose the right gift card amount to ensure it’s enticing enough to use yet also drives them to spend money on your product.
Cafe DeLuxe is both a breakfast and lunch spot found in Reno, NV. I am a frequent customer of theirs. Not only that, but I also live in the area. Because of this, I know that $30 is enough to have a good meal at the restaurant for a party of two. I would also have some leftovers to spend on another visit. I won’t have to worry about scoring a deal on the next visit because I’ve already received a meal for free. This is a win-win for both me and the restaurant. They are getting a loyal customer and I am getting a free meal.
3. Give Away More Than One Card
It’s always a good idea to gift enough cards so people feel like they have a chance to win. One of the best things about Cafe DeLuxe’s gift away that they tend to run is that it’s an ongoing promotion. While they only give away $30 every month, they are collecting new entries for the promotion every day. This allows them to grow their email list and also take full advantage of all of the benefits that come with running a gift card promotion.
4. Follow Up
If you are going to be running this kind of promotion and asking people to signup for the giveaway, you need to have a solid follow-up strategy. You want to have a good follow-up for those that enter but don’t win. A gift card trading app will help to make it easy to manage. A really good idea that could win over a lot of prospective customers is offering them a lesser prize. For instance, if they don’t win the $30 gift card, they could win a $5 gift card as a consolation prize. This is likely enough for a dessert or appetizer. They will still feel like they got value out of entering the promotion and you are going to be incentivizing them to come to your place of business. If you don’t have the marketing budget to pull this off, you should be adding the entrants to an email list where they can get first dibs on promotions and sales that you run for your business.