How Personalized Gift Card Programs Improve Guest Engagement

Key Takeaway: Gift card programs that acknowledge the preferences and behaviors of givers and recipients boost restaurant revenue through personalized experiences, driving visit frequency, loyalty, and brand affinity. 

Tens of thousands of restaurants offer gift cards, but many operators overlook their potential to drive guest engagement through personalization. According to McKinsey & Co., businesses excelling at personalization generate 40% more revenue than those that put it on the back burner. This underscores the financial impact a well-executed personalization strategy has on your business in all areas, including gift cards.

Personalization has such a big impact because consumers crave it. PYMNTS Intelligence reported that 56% of consumers feel the offers they receive are irrelevant, showing a powerful desire for higher levels of customization. Its data showed 83% of consumers are receptive to personalized messages, and nearly half are likely to switch to brands that recognize them as individuals. PYMNTS also noted proper personalization doubles the chances of gaining new business when a consumer switches merchants. 

For restaurants, personalized gift card programs are a game-changer, building brand affinity and powerful customer touchpoints that foster frequent and durable engagement.  

Adding a Personal Touch to Digital and Physical Gift Cards 

Personalizing your gift card offerings transforms them from mere transactions to memorable experiences—for recipients and buyers. Whether you opt for simple ideas or more complex initiatives, personalization elevates the entire gift-giving process. 

Giving guests the chance to express their thoughtfulness in unique ways makes their gifts more meaningful and gets them more engaged. Let’s explore two ways digital and physical gift cards increase engagement for all parties involved: 

1. Digital Gift Cards: A Canvas for Creativity

Digital gift cards offer lots of personalization opportunities, starting with custom messages. By allowing customers to include their own heartfelt notes on e-gift cards, you immediately create a deeper bond between givers and recipients.

But why stop there? Consider taking a page out of Hopdoddy Burger Bar’s book — they've implemented a group gifting feature that allows friends, family members, or co-workers to contribute to a single gift card, each adding their own messages and amounts. 

The digital realm opens doors to more advanced personalization techniques, too. Imagine using AI-driven tools to offer gift card themes to guests based on their order histories and preferences. Or offering interactive digital gift cards that change based on time of day or location, showing your breakfast menu in the morning and dinner options in the evening, or localizing gifts for recipients with home-town imagery. For the tech-savvy crowd, you could even develop gift cards that, when scanned with a smartphone, trigger an augmented reality experience that showcases your restaurant’s ambiance or signature dishes. 

2. Physical Gift Cards: Tangible Tokens of Thoughtfulness

While digital gift cards are becoming increasingly popular, physical gift cards still hold a special place in your guests’ hearts. 

Consider creating a tiered gift card personalization system for loyalty program members. This could include exclusive gift card designs, such as limited-edition seasonal themes or designs with a sense of humor. Top-tier members could upload their own photos for physical gift cards of $100 or more, or take advantage of premium gift cards that come with special perks like a free T-shirt or dessert. With personalized options like these, you enhance the gift-giving experience and increase participation in your loyalty program.

For regular guests, you could offer themed gift card bundles based on popular menu categories or dining experiences. For instance, you could create an “Appetizer Lover’s” gift card bundle or a “Date Night Special” package. These bundles could include a custom-designed gift card along with additional perks or information about the featured menu items or dining experience.  

It all comes down to the fact that gifts are meant to be personal expressions of love, friendship, and/or gratitude. The more you can tailor the digital and physical gift card experience for your guests—on the giving side and the receiving side—the happier they’ll be.  

Leveraging Data for Personalized Gift Card Programs  

Most restaurants don’t fully leverage customer data for personalization. According to the 2024 Restaurant Technology Outlook from Nation's Restaurant News (NRN), only 20% of operators “definitely” optimize their guest data, leaving significant room for improvement.

Proper personalization begins with your first-party data—the information you collect directly from guests who come into your stores, order from you online, engage with your marketing materials, participate in your loyalty program, and use your mobile app.

Every guest interaction generates data you can use to develop your gift card personalization initiatives. For example:

• Deploy AI to suggest personalized gift card designs based on purchasing patterns or recommend gift card denominations based on average check sizes. 
• Use survey results, reviews, and other feedback to generate targeted gift card promotions.  
• Gather data when people order gift cards by asking questions like “What do you love most about our restaurant?” or “What do you hope your recipient gets out of the experience?” Use the answers to follow up and send offers to encourage more gift card purchases.

Data-driven personalization makes gifts more memorable and increases their perceived value, encouraging both givers and recipients to engage more deeply with your restaurant. To implement data-driven personalization in your gift card program:

1. Assess your current data collection and analysis capabilities. 
2. Ensure you’re capturing relevant data points at all customer touchpoints. 
3. Invest in tools that analyze data and generate actionable insights. 
4. Train your staff to understand the importance of data collection and its impact on personalization efforts. 
5. Regularly review and refine your personalization strategies based on the insights you gather. 

Facilitating Recipient Engagement  

Gift card personalization extends beyond the initial transaction to ongoing engagement. Most restaurants have an online tool for checking gift card balances. But imagine taking that a step further with automated balance alerts and prompts to use gift card balances to take advantage of special offers or to try new menu items. 

Offering this opt-in service provides value to recipients, creates a new marketing channel, increases the likelihood of visits and balance reloads, and generates more first-party data you can use to further personalize future interactions.  

Increasing Guest Satisfaction with Gifted Experiences  

As consumers prioritize unique and memorable experiences over material possessions, experiential gift cards are gaining traction. These special offerings allow givers to deliver immersive experiences that create lasting memories among participants. 

Consider the success of Virgin Experience Gifts, which offers gift cards for a variety of food and beverage experiences—everything from cooking classes and multi-course dinners to date nights and urban food tours. As a restaurant operator, you’re in a unique position to craft similar experiences that resonate with your guests. All it takes is a little creative thinking: How about a special tasting dinner? A pizza party for kids? Lunch once a week for a month? A dinner and a movie tie-in with a local theater? 

The possibilities are endless, and the benefits are top tier. Experience gifts generally increase check sizes and provide guests with Instagram-worthy moments, encouraging organic social media promotion. And they’re a great way to differentiate your restaurant from competitors while creating deeper connections with guests. 

Start Reaping the Rewards of Personalized Gift Cards 

In whichever way you decide to personalize your gift card program, the key to success lies in understanding guest preferences and tailoring your offerings accordingly. Whether it’s through data-driven personalization or unique experiential packages, the goal is to make each gift card the beginning of a memorable journey with your restaurant.

The most successful gift card programs evolve through ongoing input from guests and technological advancements. Stay open to feedback, continue to innovate, and always prioritize the guest experience. With a personalized approach, your gift card program will become a cornerstone of your restaurant’s overall guest engagement strategy. 

Paytronix offers innovative solutions to support your personalized gift card initiatives. To learn more, schedule a demo now.