If you’re a small business and Christmas has passed, you may be wondering why you’d need to look at purchasing gift cards for your business for the year ahead. It can be very hard to calculate direct return on gift cards when used for marketing, promotion or employee engagement. Sadly, it’s not ‘money in, money out’ when it comes to gifts and showing your appreciation. Having said that, we wanted to take a look at a few concepts that can help you to roughly gauge the ROI of gift cards.
Did you know that a June 2016 survey of US marketers conducted by the Direct Marketing Association (DMA) and Demand Metric found that email had a median ROI of 122% and for every $1 spent, email marketing generates $38 in ROI? Encouraging subscribers to your email marketing lists with a gift card can be an ideal way to ensure a long-term investment in your business database. The email changes coming with GDPR do mean you have to be careful to offer explicit opt in information, but a competition as you go about reconfirming your email data is still an activity you can comfortably (and legally) do.
Example: A purchase of a £100 gift card as a prize for an email data list that encourages 100 subscribers could mean that over a lifetime, you generate £3,800 from these subscribers alone – a real return that can truly scale!
The annual corporate gift-giving report released by the Advertising Specialty Institute® (ASI) found gift cards are one of the most popular gifts for employees, with almost 5% of the companies giving gifts saying that they are planning to spend the same amount as last year on gifts for employees and customers.
Whilst every company is different, this is a clear positive sign that many companies are seeing the benefits of giving gifts cards to employees!
Did you know that 52% of employees agree that they “would rather be recognized privately by my manager than publicly in front of my team”? If you’ve ever been put off rewarding because of the worry that it would involve a ceremony and too much fuss, then gift cards give a real ROI – they are discreet, easy to gift and with 70% of employees saying that motivation and morale would improve “massively” with managers saying thank you more (Reward Gateway) – gift cards could be a key strategy to enhanced retention.
You may have heard it’s 5 times easier to sell to an existing customer than a new one and it’s true! In the book Marketing Metrics, the authors share a fascinating finding from their research that “The probability of selling to a new prospect is 5-20%. The probability of selling to an existing customer is 60-70%.”
It seems it’s so much easier to trust an existing business than create a new relationship with a new one. By using gift cards to upsell additional products or service, you could easily entice new customers. With the probability of making a profit at over half the odds of a marketing campaign dedicated towards enticing new customers, a promotion that serves this area of your database could be a wise move!
Why not use gift cards as a way to encourage spending over a certain threshold, or use gift cards as a competition if customers purchase within a certain date?
As you can see, gift cards can have a great ROI if you integrate them into your strategy and rather than being a business cost – they can become your biggest asset!
Why not talk to us today about purchasing bulk gift cards for your business? We offer a huge portfolio of gift cards from the world’s biggest brands.
We recommend taking a look at some of our bestselling gift cards for this year’s business activities, we recommend:
Click here to view our full portfolio.
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