Key Takeaway: A comprehensive, year-round promotional strategy for physical and digital gift cards will deliver reliable cash flow and increase guest engagement.
Restaurant gift cards have evolved from a standard hospitality offering into a powerful lever for business growth and guest engagement. Their ability to generate immediate revenue, encourage future visits, and foster guest loyalty makes an aggressive gift card strategy essential for forward-thinking operators.
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 website 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:
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.