How to Build Customer Loyalty with Gift Cards

2 min read

When you’re thinking about ways to boost customer loyalty, most business owners immediately think of loyalty programs. But gift cards are also an effective tool to enhance customer experience and build brand loyalty, especially when they’re paired with a rewards program.

In this article, we’re sharing a few ways you can use gift cards to strengthen customer relationships.

1. Use gift cards to encourage higher spending

“Get a $10 gift card if you spend more than $100”. Whether you’re a loyalty member or not, chances are you’ve come across a promotion like this before.

Using gift cards to incentivize your customers to spend more is an effective strategy for a few reasons. First and foremost, it makes your customers feel good about their shopping experience and it increases their perceived value.

By providing a gift card at the point of sale, you’re also giving your customers a reason to come back and spend it. Since customers tend to spend more than the value of their gift cards, it’s the perfect example of loyalty leading to increased revenue.

2. Offer gift cards as birthday incentives

Who doesn’t love birthdays and free stuff? Businesses that acknowledge their customers’ birthdays are able to better connect with their customers, bring them back more often, and increase traffic and revenue.

Offering a gift card or an e-gift card provides value to your customers and can be an effective way to encourage purchases on pricier, higher-margin products they’ve been eyeing, meaning you’ll be able to increase your revenue while your customers treat themselves.

3. Give gift cardholders better deals

If you’re not quite ready for a loyalty program, but you’re looking for a way to improve customer retention, this can be an effective strategy.

For example, give your customers 15% off if they pay with a gift card.

This benefits your for a number reasons:

  • Your customers will see that gift cards are a more valuable option.
  • You’ll increase your gift card sales. And since customers pay upfront for gift cards, you’ll be able to increase your immediate cash flow.
  • Depending on the value of the gift card, it’s likely that your customers will have to return a few times to spend the entire balance. This translates to better customer retention rates.
  • Plenty of customers forget to spend the last few dollars on their gift cards. This remaining unspent balance is called “breakage,” and it goes straight to your business’ bottom line.

4. Resolve customer complaints with gift cards

Customer service can make or break for your business. Poor customer service leads to loss of customers, bad reviews, and negative word-of-mouth. On the flip side, customers who experience above and beyond service are more likely to be loyal to your brand.

Try providing friendly and empathetic customer service, a prompt refund, or a gift card for their trouble. Your customers will feel valued and appreciated. Plus, a gift card will encourage them to return to your business in spite of the negative experience.

5. Create more ways to interact with your brand

“Tag a friend, follow, like, and share posts to be entered to win a gift card.” If you’re looking for an easy way to increase your followers and engagement on social media, try posting contests and giveaways to encourage people to interact with your brand.

You’ll be able to easily grow your following, engage current customers, and introduce prospective customers to your business. After you close your giveaway and your winners claim their gift cards, they will have a great reason to visit your business.

6. Reward employees and improve retention with gift cards

Finally, offering gift cards to your employees can help keep them engaged and boost employee morale and retention. Try offering employees gift cards for holidays, sales incentives, or to show your appreciation for their hard work.

Employees who feel appreciated, happier and more likely to offer better service and support for your customers. Not only will you improve your customer experience, but it can also help reduce employee turnover, which decreases the time and money you spend on hiring and training.

Learn more about gift cards and promo cards.


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