High-Performance Digital Marketing Podcast | Episode The Marketing Power of Gift Cards and Vouchers Summary

The Untapped Opportunity of Gift Vouchers and Loyalty Schemes

Gift vouchers and loyalty schemes are often overlooked by businesses and marketers, but they present a significant untapped opportunity. According to recent statistics, 47% of US adults have at least one unused gift card, with an average value of $187 per person. This represents a substantial amount of money that businesses could be capitalizing on.

What's more, the average value of unused gift cards has been steadily increasing over the past two years, rising from $116 to $187. This trend indicates that consumers are increasingly holding onto their gift cards, potentially presenting a long-term revenue stream for businesses.

Not only do gift card users tend to hold onto their cards, but they are also more likely to pay full price for products or services. In fact, studies have shown that gift card users are two and a half times more likely to pay full price and are less price sensitive. This means that businesses can generate higher profits by selling gift vouchers instead of products.

Furthermore, offering gift vouchers as an incentive can be more financially sensible than offering discounts. While discounts may attract customers in the short term, they can eat into profit margins. On the other hand, gift vouchers can provide a boost in revenue without sacrificing profitability.

Loyalty schemes are another powerful tool for businesses. By implementing a loyalty program, businesses can increase sales, foster customer loyalty, and reduce price sensitivity. These schemes incentivize customers to keep coming back, ultimately leading to higher customer retention rates and increased revenue.

It's not just product-based businesses that can benefit from gift vouchers and loyalty schemes. Service-based businesses can also leverage these strategies to attract and retain customers. Whether it's a spa offering gift vouchers for massages or a salon implementing a loyalty program for regular customers, these tactics can be tailored to suit a wide range of industries.

In conclusion, gift vouchers and loyalty schemes present a largely untapped opportunity for businesses and marketers. By capitalizing on the growing trend of unused gift cards and implementing effective loyalty programs, businesses can increase profitability, foster customer loyalty, and reduce price sensitivity.