Mother's Day: Promotions turn profits

We can hardly believe  Mother’s Day is almost here – time really does fly! As a result, we’re ticking occasions off on the promotional calendar at lightning speed. 

Mother’s Day is, of course, all about making sure your mother - or a special female role model in your life - feels loved and appreciated. But like all special occasions, it’s also about making sure your customers feel the same way. 


The Power of Promotions 

Running a promotion is the quintessential win-win. You get additional sales, revenue, customers or almost anything else your business needs at the time. And your customers get better value—how good is that!.  


That value, by the way, is extremely motivating. In fact, 62% of consumers say they can’t even complete a purchase before searching around for some kind of offer.1  


So which types of promotions make your customers feel like they’re getting a better value? Which types work best? Let’s take a look at some popular promotions and how well they do, based on Blackhawk Network’s US Cashstar historical data and experience (which is substantial). 


Promotion Types and Effectiveness 


Any properly planned and executed promotion will move the needle. But some are simply more effective than others. Here’s a sampling of gift card promotion types, as well as each one’s resulting average increase in revenue2. 


  1. 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 


  1. Buy One, Get Points 
    If a shopper buys a $50 gift card, they get double or triple the usual amount of loyalty or reward points. This comes with a lower cost per engagement but is still seen as a high-value win by shoppers. 

80% Average Increase 


  1. 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 


  1. Buy One at a Discount 
    If a shopper buys a gift card of $50 or more, they get that card for 20% off. It gives you larger carts, and gives shoppers instant gratification. 

65% Average Increase 


  1. Buy One, Get a Voucher on Top  
    If the shopper buys a $50 gift card, they get a 20% off voucher to use on their next visit. This brings customers in twice and leads to more revenue. Twice. 

56% Average Increase 


  1. Buy One and Donate 
    If the shopper buys a $50 gift card, you make a $10 donation to a nonprofit charity. This feels good for both retailer and shopper. Plus… tax deduction! 

30% Average Increase 



How Can We Help You? 


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.  


1. RetailMeNot Incrementality Study, March 2018 
2. CashStar Historical Data based on US CashStar Product Performance  
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