Launching a gift card program can be a game-changer for your brand - it’s a great way to boost revenue, get your name out there, and build customer loyalty. But without a solid plan, it’s easy to stumble into common traps that hold your program back from its full potential.
At Jigsaw, we’ve been helping brands launch their gift card programs for over 11 years, giving us insight into the common pitfalls to watch out for. So, if you’re looking to launch a gift card program of your own, then here’s what to avoid and how to fix it!
1. Not defining clear objectives 📈
One of the biggest mistakes a brand can make when launching their gift card program for the first time is jumping in without clear goals and objectives. Are you aiming to increase revenue? Boost average transaction size? Create a seamless omni-channel experience?
One of the great things about gift cards is the boundless opportunities they present, but capturing these and turning them into clear, actionable objectives can be difficult to master. Make sure you take the time to strategise your program, and if you need help defining goals and objectives, then consider reaching out to a third-party expert who can help you put the foundations in place.
2. Overlooking digital e-gift options 📱
The digital gift card market is booming, with the GCVA reporting that digital gift card sales have overtaken physical for the first time ever.
Many consumers prefer digital cards due to their convenience and instant delivery - because of this, many brands now choose a digital-first approach. Whatever your preference, we can help you launch a digital, physical or combined offering at Jigsaw. With our gift card processor, Jigsaw360, we ensure your cards are available whenever, wherever, across all channels.
3. Having an overly complex redemption process 😖
One of the many reasons consumers love gift cards is because they are universally known and easy to use. Whether you're offering physical or digital gift cards, you need to consider the user experience when your customer comes to use the gift card at the checkout.
Launching a gift card program is one thing, but integrating it smoothly into your point-of-sale (POS) system is another. Whether you choose to undertake this development work in-house or to consult a gift card program manager, it’s essential to take a holistic approach, ensuring a seamless redemption process across all touchpoints - whether it’s in-store, online, or through a mobile app.
4. Skipping marketing and promotion 🤝
The value of marketing and promoting a gift card program cannot be underestimated - it’s the key to ensuring you’re reaching people who are interested in your brand.
If you have an in-house marketing team, then be sure to bring them into your launch plans as soon as possible, or alternatively, consider outsourcing the marketing for your gift card program altogether.
One of the benefits of working with a third-party gift card program manager is that they live and breathe gift cards, giving you a head start on your gift card marketing and leaving your in-house team to continue their business as usual.
5. Overlooking the importance of design and packaging 🎨
Branding your gift card is the fun part! But the importance of design and packaging goes beyond making your gift card look appealing.
Especially for physical gift cards, packaging is a front-line defence against gift-card fraud, and if you’re going to distribute your gift card on a global scale, then packaging requirements can be mandated by law.
For digital gift cards, design is the first thing a customer sees online. Therefore, it needs to instantly communicate your brand and messaging while simultaneously communicating the event, campaign, or seasonality of your specific offering.
Make sure you’re up-to-date with gift card regulations for your desired distribution territories, and if you need help then reach out to an expert who can save you a lot of misprint errors!
6. Missing out on the B2B market potential 🫣
Did you know that the global B2B gift card market is projected to be worth around $315.8 billion in 2024?
Plus, it’s expected to grow to approximately $629.7 billion by 2031, with a compound annual growth rate (CAGR) of 10.4% - this growth is largely driven by the increasing use of gift cards for employee rewards, corporate gifting, and customer incentives, alongside the rise of digital transformation.
That’s a whole lot of revenue potential for your gift card, so make sure to bring it into the conversation when launching your gift card program.
One of the easiest ways to get in front of B2B buyers is by working with a gift card program manager who can integrate your gift card with leading third-party distributors like Tillo. Your gift card program manager then works as your brand advocate, ensuring that your brand only appears in programs that you approve - and they stay on top of things like reporting and promotions, too.
Alternatively, you can integrate with these third-party distributors yourself, the choice is entirely up to you - but the B2B market shouldn’t be slept on!
7. Underestimating the role of data and analytics ➗
For established gift card programs, data and analytics are a given, but when you’re just getting started, you may not have access to these kinds of insights - and that’s ok! You don’t need to know all the numbers yet, but it helps to work with a gift card expert who can at least give you a prediction while your program gathers momentum.
At Jigsaw, we empower you with detailed reports, giving you a clear understanding of your program’s success and highlighting opportunities for greater growth.
8. Trying to hide from fraud 🔐
Gift card fraud has become a bit of a buzzword, especially in the media and while it is often used as a sensationalist headline, it can’t be overlooked entirely as it is a real problem and can be a serious concern for consumers.
The good news is that whether you’re launching a digital or physical gift card offering, there are simple measures you can put in place to protect yourself and your customers against fraud, including tamper-proof packaging and payment rules, to name a few.
If you don’t feel equipped to deal with fraud in-house, then it’s always worth a conversation with a gift card program manager. They can help review your current measures and suggest improvements based on their experience in the industry.
Ready to launch your gift card program?
Launching a gift card program shouldn't feel overwhelming - it should feel like an exciting opportunity to grow your brand.
If any of the challenges we've covered are holding you back or causing headaches for your team, now's the perfect time to make a change by reaching out to Jigsaw. With the right support, your gift card program can be a game-changer.
Let’s turn those obstacles into opportunities and get your program off the ground! 🙌
