What’s the Most Effective Way to Implement Gift Card Rewards Programs?
Gift card rewards help even the smallest businesses by bringing in more customers and improving exposure. The rewards can keep customers loyal to your business while encouraging publicity through word of mouth and other avenues. The benefits of implementing a rewards program are too significant to ignore. Still, the best outcomes are only possible if the program is set up well and properly supported.
If you use your gift cards creatively and understand how to appeal to current and prospective customers, you’ll use your rewards program to take your business to new heights. It might seem like an additional expense, but you stand to gain much more than you’ll spend if you take the right steps. Read on to learn how you can implement a gift card rewards program.
Setting up Your New Gift Card Rewards Program
Gift cards on their own are a useful tool, as they motivate new customers to come to your business. People who might normally visit your competitors would feel inclined to use the card and give you a chance. This is preferable to letting a perfectly good card go to waste, after all.
Beyond that, gift cards as part of a rewards program can be an even more powerful promotional tool. They can bring in new customers while keeping existing customers loyal. This can’t work if people don’t know about it, however — customers must know about the promotion so they can take advantage of the offer.
Social media is a way to not only identify the consumers who’ve been loyal to you but also to zero in on prospective customers. If someone gets a gift card reward for being a loyal customer and shares it on social media, that digital word-of-mouth is a valuable promotion that will generate interest in your business. The effectiveness of your reward program multiplies with this kind of exposure. This method also provides you with a way of reaching out to younger demographics, which tend to be harder to reach through traditional methods of advertising.
Customers enjoy immediate results, and gift card rewards are an excellent way to create instant appeal. Communication is important, however. It’s important that the loyal customers you’re rewarding understand what’s happening and why. Receiving a gift card in the mail is always a nice surprise, but you should take the extra step. Make it more meaningful, with a message explaining that you’re showing your gratitude for their loyalty. This makes them feel valued and more likely to keep bringing you their business.
Speaking of loyal customers, keep in mind that many gift card promotions deliberately target only new customers. This has the potential to alienate the loyal customers who have been coming back to the same store for years. By making note of the loyalty of those long-term customers with a gift card promotion that focuses on keeping their business, you might foster even more goodwill among your customer base.
Rewarding with Gift Cards Costs Less Than You Might Think
The benefits of starting up a gift card rewards program for your business don’t end with the customers you’re looking to bring into your store. Giving spending money away might seem like it hurts your margins, but people tend to buy more than the value of their card once they’ve brought it into the store. The concept of having free money to spend sometimes means they’re willing to spend more than they normally would.
A person with some money left on their card might opt to stick around and buy more products instead of leaving with a remaining balance. They’ll keep on shopping, even if the new total exceeds the amount they have remaining on the card! Otherwise, the trip they made might not feel like it was worth the effort. Getting new customers, and holding onto them, becomes much simpler with the use of gift cards and gift card rewards. The investment is one that can pay off in a big way, and much faster than you might have thought possible
Gift cards are a great way to reward loyal customers while also reaching out to new ones. Growing a business is a unique challenge with a lot of twists and turns, but an effectively implemented rewards program can make things a little easier. It is a reliable method of achieving growth and improving exposure.
If you have any questions about gift card rewards, or if you’re looking for help with starting up a gift card rewards program for your business, visit Loyaltyworks online or give us a call at (800) 844-5000 today.