Gift cards are a “Magic” ingredient in your CRM Marketing brew, capable of adding customers to your base, keeping those and the ones you already have and making more profits than ever by employing such concepts as “uplift”, “breakage”, “cycling”, “agreement” and more.Some of the many reasons and advantages that merchants should offer gift and prepaid cards:
54 percent of respondents received gift cards for the 2005 holidays. Nearly a year later, 19 percent of the gift-card recipients have not used one or more of the cards received. — Consumer Reports
Gift cards accounted for over $26 Billion in during the 2007 holiday season in America. During that same year, 2 out of 3 people purchased or received gift cards.
Research shows that retailers switching from paper gift certificates to gift cards increase the amount they sell by 50-100%. — ePaynews.com
The average recipient spends 20 percent more than their card's initial value. Christmas Eve 2001, a major retail home improvement chain sold 580,000 gift cards in 9 hours for a total value of $21 million. The $100 cards produced an average sale of $152, creating a 52% ticket lift.— The Wall Street Journal
When a card is used in a redemption transaction, the average order value is 31% higher than the merchant's average order -Datamark Technologies
Gift cards accounted for 10-13% of retail sales during the 2004 holiday season.— The Wall Street Journal
Gift cards are the most popular gift in the U.S.. The gift card industry has grown to be a $35.5 billion industry and will surpass $5 billion by 2010 --MarketResearch.com (“Packaged Facts” report 2006)
Customers are 10x more likely to by a gift card vs a paper certificate.
But all these wonderful things will not take place unless you can get them off the racks and in your customer’s wallets, purses and pocketbooks. They don’t call them “Walking Billboards” for nothing.
Let us know all the details of what you did, the before and after results, pictures of your campaign, and/or anything else that you can think of that could possibly inspire someone else.
If your submission is the best, we would Love to Buy You Lunch! We will be choosing winners 2x per month, so make it good.
If all of this has made sense to you and you would like to get your CRM Marketing Program started, immediately contact us and we will be glad to help you get your business on the road to Profiting More by Building Better Relationships with your customers!
“I would recommend this program to absolutely anyone because it has definitely created loyalty! There is so much competition in larger cities and when we opened our second location in Burlington, IA we needed to do something to set our bakery apart. I can think off the top of my head at least 15 customers who eat here 4 days a week just because of the card, where as before they would come only once a week. It has really worked well for us and has created a word-of-mouth to where we don’t even have to “sell” it anymore. It has been a win-win for both our business and our customers.”
* Martha Wolf
The Ivy Bake Shoppe & Café