The Hidden Power of Gift Cards in Your Loyalty Strategy
Key Takeaway:In an industry where high-frequency transactions are vital for success, gift card programs offer restaurant operators several...
7 min read
By maintaining a consistent focus on gift card sales, restaurants raise revenue during slower periods and maintain steady cash flow year-round. Operators who wait until the end of the year to heavily promote gift cards are missing out on significant opportunities. While nearly half of all gift card sales occur in the last two months of the year, untapped potential abounds in the other ten.
In this article, we’ll explore effective promotion techniques for physical and digital gift cards, as well as universal strategies to increase your gift card sales overall.
While digital platforms offer new opportunities for gift card growth, physical gift cards still outsell digital cards by a two-to-one margin, according to research from Bank of America. They offer a tangible gift-giving experience and can be a valuable impulse purchase when prominently displayed.
Effective promotion and more sales of physical gift cards require a blend of visual appeal, strategic placement, and creative marketing:
Digital gift cards have been growing in popularity, offering convenience and instant delivery that align with our increasingly online and mobile lifestyles. While more people still buy physical gift cards, Bank of America reported that, in most cases, digital gift cards have higher dollar amounts. They’re also easily reloadable, which encourages more frequent visits and fosters long-term customer value:
According to Bank of America, digital gift cards hold more value than physical gift cards in most cases.
Promoting digital gift cards effectively requires leveraging your online presence and digital marketing channels. The following seven strategies will help you generate more digital gift card sales by tapping into the power of technology and online consumer behavior:
1. Online Presence: Creating a Digital Storefront
Ensure your restaurant website builder prominently features digital gift cards with an easy-to-use online ordering system that enables card account management, including balance checks and reloading. Use pop-ups or banners to highlight current gift card promotions.
2. Buying Process: Streamlining the Guest Experience
Your digital gift card storefront should make purchasing fast and fun. Offer design choices and the ability to leave a personalized message to the recipient.
3. Group Gift Cards: Encouraging Collaborative Gifting
One of our clients, Hopdoddy Burger Bar, lets groups of friends, co-workers, and family members pitch in to give a group gift:
4. Social Media Campaigns: Engaging Guests in Meaningful Ways
Create content showcasing the experiential benefits of your digital gift cards. Run contests encouraging guests to share who they give gift cards to and what they buy with them.
5. Email Marketing: Leveraging Your Customer Database
Send targeted, personalized campaigns to your email list, highlighting the convenience of digital gift cards. Create urgency with limited-time offers and create audience segments based on past behaviors and preferences.
6. Mobile App Integration: On-the-Go Purchasing and Redemption
If you have a mobile app, make gift card purchase, redemption, and reloading a seamless part of the experience. Use push notifications to promote special gift card offers.
7. Influencer Partnerships: Expanding Reach
Partner with food bloggers and local influencers to promote your digital gift cards. Give them unique discount codes to share with their followers.
While physical and digital gift cards each have unique promotional needs, many strategies can be effective for both formats. These universal approaches focus on timing, value, and integration with your overall marketing efforts.
By implementing these seven tactics, you’ll create a cohesive gift card program that appeals to the widest, most relevant range of guests:
There's serious effort and foresight involved in effective gift card promotion planning. If you're ready to make every campaign that much more effective, dive into our answers for these commonly asked questions.
To increase gift card sales at your restaurant, offer gift cards at all key customer touchpoints. This includes everywhere your customer interacts with your business, such as on social media pages, your website, and on your menus.
Add prominent signs and gift card displays near your POS system or cash register so customers remember your restaurant offers gift cards. It may serve as a reminder to pick up one as a last-minute gift.
Train employees to mention gift cards and comp cards during customer interactions. Have employees mention promotions or the availability of gift cards during checkout. While you don’t want to be too pushy or promotional to customers, some customers will want to know. Make it easy for customers to purchase gift cards online and in person. Ensure your website features a prominent link to buy digital or physical gift cards.
Offering incentives also encourages customers to buy gift cards. For example, provide a small bonus card for the purchaser—such as a $10 gift card with every $50 purchase. This not only motivates sales but increases the likelihood of repeat visits.
Partner with local businesses or non-profits to promote your gift cards to a wider audience. Consider bundling them with other local products or experiences to create unique packages.
Promote gift cards by incorporating them into all your marketing channels. Feature gift cards prominently on your website’s homepage and use social media posts, stories, and ads to highlight them.
Include reminders about gift cards in email newsletters, especially during holidays or special occasions like birthdays and anniversaries. Customers may otherwise forget it’s an option.
Incorporate in-store advertising into your promotional plan. Use table tents, posters, or QR codes to link directly to online gift card sales.
Collaborate with influencers or food bloggers in your area to showcase your gift card offerings. They’ll spread the word about how easy and versatile your gift cards are. Promotions like “Dinner for Two” gift card bundles or holiday-themed designs also drive sales.
Gift cards provide upfront revenue, offering immediate cash flow to your restaurant. Since they’re prepaid, you benefit from the funds long before the gift card is redeemed, which helps cover operational expenses now.
When customers redeem gift cards, they often spend more than the card's value. For instance, someone with a $50 gift card might order $70 worth of food and drinks. It’s unlikely that they’ll be able to purchase their meal for the exact amount.
Unredeemed gift card balances, known as "breakage," add to your profitability. While it's important to honor every gift card, a percentage of cards usually goes unused or are not fully redeemed.
Gift cards help attract new customers and encourage repeat visits. A recipient might visit your restaurant for the first time and have a positive experience. This leads them to come back again in the future.
A comprehensive gift card strategy integrates both physical and digital offerings, using various channels to maximize reach and effectiveness. Track performance and adjust tactics accordingly, whether using eye-catching in-store displays, engaging social media campaigns, or irresistible bonus offers.
Success hinges on creating enticing offers, effective communication, and a smooth purchase process. And when you do it right, aggressive gift card promotion offers multiple benefits:
Paytronix leads in gift card solutions and other guest engagement strategies, expertly integrating gift cards, loyalty, and online ordering into a cohesive, customer-centric ecosystem. Contact us today for a personalized demo and learn how to create meaningful guest connections and increase revenue with gift cards.