The promotional calendar merry-go-round doesn’t stop for anyone. Yes, it’s May, already—time to think seriously about moms, dads and grads.
The good news? The revenue opportunities look really good.
Moms, Dads and Grads 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 opportunities-go for the best options 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, Father’s Day and graduation.
Mother’s Day, (May 8)
According to the National Retail Federation, this year’s Mother’s Day spending will reach a record high. The estimated total US spend is $31.7 billion, or $246 per person. That’s showing moms-and retailers-a lot of love.
And what are the top gift choices? After flowers, greeting cards and a special outing, it’s gift cards. In fact, 52% of those surveyed by the NRF will be buying gift cards, up from 47% last year.
Father’s Day (June 19)
The NRF doesn’t have this year’s Father’s Day estimates out, yet, but the 2021 projections paint a nice picture. Total US spend was expected to be $20.1 billion, or $174 per person (up from $148 per person in 2020). Numbers should be stronger this year, thanks to the waning pandemic.
Gift cards are a big part of Father’s Day, too-46% planned to buy gift cards vs. 41% the year before.
Graduation (May and June)
Gifting for graduation also reached an all-time high in 2021, according to NRF projections. Total expected spending was projected to reach $5.9 billion, with an average spend of $119 per person. With more people leaving the house (and seeing other people), these numbers should only go up in 2022.
Gift cards fared well as a gift of choice here, too, ranking third behind cash and greeting cards. 31% intended to buy graduation gifts in 2021.
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
What’s better than a gift card? A discounted gift card. If a shopper buys a $100 gift card, give it to them at a 10% discount. This drives higher load values and gives shoppers instant gratification.
65% 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, even Talk Like Yoda Day (May 21, it is). 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.
* Blackhawk Network Historical Data