The holiday season may be over, but for savvy retailers, January is far from a slow month. While the tinsel comes down and festive sales wrap up, gift cards emerge as the unsung heroes of post-holiday revenue. They’re not just stocking fillers – they’re revenue drivers waiting to be unlocked.
Let’s talk about how retailers can capitalise on the January gift card surge and turn it into a powerful driver for sales, footfall, and customer loyalty.
The January gift card effect
January isn’t just about clearing leftover inventory or enticing customers with sales – it’s the month of redemption. With millions of gift cards exchanged over the holiday season, January sees an influx of eager shoppers looking to spend their newly acquired ‘free money’. In fact, according to the Gift Card & Voucher Association (GCVA), over 50% of consumers redeem their gift cards within the first month of receiving them.
The result? A much-needed boost for retailers, right when the post-holiday lull threatens to slow sales. 📈
Why gift cards are a revenue goldmine
Gift cards bring unique opportunities that traditional retail promotions simply can’t replicate:
- Higher basket sizes: Shoppers often spend more than the value of the gift card. According to research by Tillo, 67% of gift card users overspend, adding an average of £18.55 above the card’s value. That’s extra revenue just waiting to be tapped. ✅
- New customer acquisition: A gift card is essentially a brand invitation. Recipients who may not have shopped with you before now have a reason to explore your products – and potentially become loyal customers. 🚀
- Omni-channel sales: Whether in-store or online, gift card redemptions drive traffic across multiple channels, offering seamless opportunities for upselling and cross-selling. ⬆️
- Boosting January sales targets: Gift card redemption helps retailers hit those all-important Q1 targets, setting the tone for a strong year ahead. 📉
Tips for retailers: turning gift cards into January revenue
- Create irresistible promotions: Encourage gift card users to redeem sooner rather than later. Pair gift card spending with exclusive January offers, such as ‘spend £50 and get £10 off your next purchase’ or time-sensitive discounts.
- Go omni-channel: Ensure your gift cards can be seamlessly redeemed online and in-store. An omni-channel program managed by experts (like Jigsaw!) ensures a smooth redemption experience that delights customers and drives sales.
- Highlight gift card-friendly products: Promote popular items that match common gift card values. Whether it’s a £25 skincare set or a £50 home decor piece, guiding customers towards these options can maximise redemption rates and upsells.
- Engage first-time shoppers: Use gift card redemptions as an opportunity to build long-term relationships. Loyalty programs, personalised follow-ups, and special incentives for first-time buyers can turn gift card recipients into repeat customers.
- Get creative with marketing: January is prime time for gift card promotions. Use email campaigns, social media, and in-store signage to remind customers to redeem their gift cards and explore your new collections.
Unlock the full potential of January sales
To fully harness the January gift card opportunity, retailers need a program that’s easy to manage, omni-channel-ready, and designed for success. That’s where Jigsaw comes in. We take the stress out of gift card programs so you can focus on driving sales, acquiring new customers, and hitting those all-important revenue targets.
January doesn’t have to be a slump. By capitalising on the post-holiday gift card surge, you can unlock significant revenue, bring in new customers, and start the year strong ✨.
Ready to make gift cards your January secret weapon? Let’s chat. We're here to help you take your gift card program to the next level – all year round.
Start driving more revenue with gift cards today 📈
