Gift card sales are estimated to surpass $424 billion by the end of 2022, half of which will occur during the holiday season. That translates into a huge boost for businesses, providing steady revenue without merchandise loss or supply usage. 

But businesses have even more to gain once customers redeem their gift cards. In fact, 54% of shoppers will spend more than the card’s value, $59 more on average. Gift cards keep on benefiting businesses well beyond their initial redemption via:

• Increased lead capture
• Expanded brand awareness
• Higher customer retention

As post-holiday gift card redemptions kick into high gear, position your business to capture their maximum rewards. That means shifting focus to gift card usage, providing an amazing customer experience, and capitalising on opportunities to stay connected after redemption. 

Optimise Post-Holiday Gift Card Redemptions With Reminders

Before your business can reap all that gift card goodness, you need to get customers in the door or on your website. On average, 76% of gift card holders plan to use their cards within a month after receiving. Here are some ways you can make it a reality.

Email reminders

If your business offers digital gift cards, follow-up is vital once a card has been delivered. Streamline their customer experience by adding a link to check their balance. Here are a few emails that can help push recipients into action.

• Welcome email (+1 day after delivery)
• Friendly reminder (+3 days after delivery)
• Sales promotions (+7 days after delivery)
• Remaining balance reminders (+30 days after delivery)
• Abandoned cart (when applicable)

Website tools

Recipients of both digital and physical gift cards are likely to browse your website ahead of time—take advantage of it!

Display/pop-up ads

A whopping 34% of consumers discover a business for the first time thanks to a gift card. Welcome new visitors with a tour of your site and display your best-selling products on your homepage.  

Use a popup op-tin form where physical gift card holders can sign up to your mailing list for special offers and remaining balance reminders.

Gift card balance checker

Add an easy way for shoppers to check their gift card balance on your site. Already have one? Make sure it’s visible on your homepage or drop-down menu.

Consider a gift card makeover

Some gift card loss is expected and unavoidable. But if your redemption rates are particularly disappointing, you may need to make more fundamental changes to your gift card program.

‘Hybridise’ your gift card options

Make it simple for everyone to shop by offering digital and physical gift cards. For digital cards, allow a printable option so giftees can still shop in store. Likewise, make it easy for physical gift card holders to shop online by entering their gift card code at checkout. 

Enabling both types of gift cards to be added to a digital wallet can also encourage fast redemption and prevent loss.

Switch to paper gift cards

The average shopper owns so many plastic credit/debit/loyalty/membership cards etc; it’s no wonder that 30% of gift card value goes unused each year. 

Paper gift cards’ unique texture helps them stand out and encourages faster redemption. They also make the perfect, eco-friendly impression on shoppers and cost your business less in production costs.

Optimise Post-Holiday Gift Card Redemptions With Discounts

Gift cards are one of the best ways to bring customers to your store or site. And discounts are the ideal way to catch their attention once there. Get inspired by some of these ideas. 

After-season clearance sales

Once the holiday buzz starts to dwindle, it can be difficult to move out older stock. Steep reductions on remaining items are the perfect incentive to drive timely gift card redemptions.

Limited-time redemption rewards

Offer gift card holders an additional discount or other rewards when they redeem their full gift card value during a limited time period. 

Early-bird discounts on new items

After the holidays, new items are often overlooked in favour of heavily discounted merchandise. Because gift cards often encourage shoppers to spend more, offering early discounts on new items can prompt fast action and increase full-amount redemptions.

Optimise Post-Holiday Gift Card Redemptions With Loyalty Programs

While increased revenue from gift card sales and higher transaction values are a much welcome boost during and immediately after the holidays, better customer retention rates provide businesses the staying power they need year round. In fact, improving customer retention by 5%, has the potential of increasing overall revenue by 25%. 

Be ready to capitalise on increased traffic and new customers discovering your business with a loyalty program that will keep them coming back for more.

Points/rewards card

Nothing puts people in an agreeable mood more than free money. Don’t forget to offer gift card recipients a rewards card at checkout. Not only are they likely to sign up, it may encourage them to use up any remaining balance on their card, especially if they can earn points while doing so.

Most rewards cards offer incentives such as:

• Point(s) per dollar(s) spent
• Discounts or gift cards after spending a certain amount
• Freebies

Tiered loyalty program

Similar to a rewards card, tiered loyalty programs offer points for each purchase. However, these programs offer additional benefits once members reach specific thresholds in a limited amount of time, putting them into a new ‘tier’ or rewards category.

Each tier offers more benefits (and minimum spending amounts) to customers as they move up. Some examples could be free shipping, better points-to-dollar discounts/rates, and exclusive access to new products. 

Key Things To Remember To Optimise Post-Holiday Gift Card Redemption

Sometimes the simplest actions can trigger the best results. Here are some basic guidelines to maximising the benefits of card redemption benefits for your business.

Promote, promote, promote

Is your business holding an epic, post-holiday clearance sale? Promote it! Rolling out new merchandise? Promote it! Launching a killer loyalty program? Yep, promote it! The more buzz you create about your business, the more likely shoppers will come in to redeem quickly. 

Provide first-class customer experience

Busier-than-usual days and longer hours can leave your staff feeling burnt out after the holidays. But the extra effort made during this crucial period can have a huge impact on customer retention throughout the year. Take time to explain your brand and products to new customers and treat every shopper like a VIP. 

Find ways to stay connected with customers

Don’t let customers forget your business after their post-holiday gift card redemption. Utilise increased customer traffic to add new leads to your mailing list, whether it’s through an opt-in form on your website or an in-store loyalty program sign-up.