November 10, 2014
The Holiday Gift Card Strategy
Holiday season is fast approaching, which is why Mercator released a new infographic on, “How to Max Out the Most Requested Holiday Item.”
Gift cards have topped the holiday wish lists for the past few years and have steadily increased in demand by load value. Of the $100 billion in load value Mercator expects consumers to purchase in 2014, $38.6 billion is forecasted to come from holiday alone. That is a huge opportunity.
So how can retailers sell more cards and then drive redemption? They can accomplish this by developing campaigns and programs around gift cards, promote them both in store and online and then reward consumers for redeeming their gifts.
Mercator recommended developing an employee program to promote the gifts amongst their respective teams and to create a sales contest with gift card rewards. Combined with in-store signage such as the front of shopping carts and drive-thru locations, these strategies help build momentum to buy gift cards.
Along with promotion, the key to really seizing the holiday gift card opportunity is in the redemption. The study found that the day after Christmas is the most popular day for consumers to use their cards. That’s an excellent opportunity to further encourage consumer to come back by offering them additional gift cards or providing unique gift card-oriented promotions.
Lastly, the insights found that when consumers upload their gift cards to mobile apps, it actually drives sales. Consumers have lots of options to do this – they can use Blackhawk’s GoWallet app to load and redeem. Other mobile wallets like Amazon work well with its online store, while Google’s gift card capabilities help track balances.
Whatever the case, make sure you have your gift card strategy in place. For full insights, see the infographic below and visit www.blackhawknetwork.com