The promotional calendar merry-go-round doesn’t stop for anyone. Yes, it’s May, already—time to think seriously about mums.
The good news? The revenue opportunities look really good.
Moms by the Numbers
Running a gift card promotion is always a good idea, but you probably don’t want to run one every week of the year. So that’s why you have to pick and choose your battles—go for the best opportunities for your brand and/or your business goals.
One of the best ways to evaluate for a promotion go/no-go is to look at consumer spending results and trends. So, let’s look at the spending for Mother’s Day.
Mothers Day (May 8)
Australians are set to spend $754 million on Mother’s Day gifts with flowers, alcohol, food and clothing topping the gifts for mum, according to research from the Australian Retailers Association (ARA) in collaboration with Roy Morgan.
People who plan on buying a gift will spend an average amount of $80, with 90% planning to spend the same or more than they did last year.
Flowers are set to be the most popular gift, mentioned by 34% of Australians surveyed, followed by alcohol and food (23%) and clothing, shoes and sleepwear (mentioned by 11% of Australians).
Around a quarter of Australians (24%) will be purchasing gifts for people who aren’t their birth mother, including mothers-in-law, wives or partners and other family members.
If you have a digital gifting platform already set up on your website, you can set up a promotion for any of these big-dollar shopping periods at any time. If not, contact Blackhawk Network and we’ll show you how easy it is to sell your own gift cards—physical and digital—online.
Promotion Types and Effectiveness
Now that you know May and June have some prime gift card promotion opportunities, what kind of promotions should you run? Here’s a sampling of gift card promotion types, as well as each one’s resulting average increase in revenue.*
- Buy One, Get One
If a shopper buys a $50 gift card (for themselves or as a gift), they get a $20 gift card free. Although there’s a higher spend up front, this type of promotion usually leads to an incremental spend at redemption.
85% Average Increase
- Buy One, Get Points
If a shopper buys a $50 gift card, they get a certain number of loyalty points free. This comes with a lower cost per engagement, but is still seen as a high-value win by shoppers.
80% Average Increase
- Buy One, Get Free Product
For each $50 gift card purchased, the shopper gets a free product. If you have excess stock of an appropriate item, this will get shoppers in the door—and clear out some valuable storage space.
80% Average Increase
- Buy One at a Discount
This doesn’t have to be about gift cards. If a shopper spends $50 or more, they get 20% off the entire purchase. It gives you larger carts, and gives shoppers instant gratification.
65% Average Increase
- Buy One, Get a Coupon
If the shopper buys a $50 gift card, they get a 20% off coupon to use on their next visit. This brings customers in twice and leads to more revenue. Twice.
56% Average Increase
- Buy One and Donate
If the shopper buys a $50 gift card, you make a $10 donation to a nonprofit organization. This feels good for both retailer and shopper. Plus… tax deduction!
30% Average Increase
How Can We Help You?
Of course, these ideas will work for any holiday, so if you have questions about promotions any time of the year—or if you’re ready to get started—the promotional experts at Blackhawk Network are standing by to help.
Just click here to get started or call 1300.883.667.
* CashStar Historical Data
