In the evolving landscape of customer loyalty, the role of gift cards has often been in the shadows, waiting to be discovered. Have we overlooked their potential to spark true loyalty, or are they destined to remain in the background? In this article I’ll delve into the discussion on the role of gift cards in loyalty programs, exploring whether they have been the unsung heroes all along.
Igniting the Conversation: Are Gift Cards Overlooked?
Gift cards, those unassuming tokens of delight, have played second fiddle in the loyalty orchestra. While member-based loyalty programs harness their power for points burn and referrals, many brand-based loyalty programs seem to have left them cooling on the back burner. Have we underestimated their ability to kindle true loyalty?
Loyalty: Not a Program, but an Outcome
Before we decide to explore further, let’s revisit the essence of loyalty. As Adam Posner and his ‘For Love or Money™ 2023’ report states, ‘Loyalty is not a program’; it’s an outcome. The report revealed that 58% of respondents view loyalty to a brand as ‘Transactional Loyalty’. Here’s where the intrigue lies—gift cards, with their tangible and transactional nature, become the catalyst for this loyalty spark.
Gift Cards in the Loyalty Mix: A Versatile Arsenal
Member-based programs have begun to recognise the potential of gift cards for points burn and referrals, acknowledging their prowess. However, brand-based loyalty programs are yet to fully embrace this versatile arsenal. Gift cards can be wielded for various loyalty initiatives—from attracting new members and referrals to appeasement, cart abandonment strategies, goal-setting, and beyond.
The Spending Surge: Gift Card Customers and the 150% Boost
Beyond the numbers, the impact of gift cards is profound. Blackhawk’s 2023 survey found that 78% of customers intended to spend more than the gift card value. Retail brands quote overspend of 75%-150% more. It’s not just a transaction; it’s a spending boost that brands cannot afford to ignore.
Time to Uncover the Potential of Gift Card Loyalty
As we navigate the loyalty landscape, it’s evident that gift cards are waiting to be discovered as potent tools for loyalty programs. Whether in member-based or brand-based loyalty initiatives, their potential for attracting new customers, encouraging referrals, and boosting spending cannot be overlooked. It’s time to uncover the potential, embrace the gift card dynamic, and let loyalty programs shine brighter than ever. Are you ready to explore this spark further? 🔥🎁🚀 #elevateloyalty #alwayselevate #thisisloyalty #giftcardsinloyalty
