Unwrapping the Potential: Why Retailers Should Leverage Holiday Gift Cards to Maximise ROI 🎁

As the holiday season approaches, retailers everywhere are preparing for their busiest time of the year. Among the holiday promotions, discounts, and festive window displays, there's a secret weapon that many retailers are using to boost sales and build lasting relationships with customers: gift cards. 🌟

Holiday gift cards have the unique ability to attract new customers, increase sales, and generate long-term loyalty—making them essential for any retailer looking to maximise return on investment (ROI) during the holiday season. Here’s why this versatile product should be at the top of your holiday strategy.

1. Gift cards drive immediate and future sales 💸

One of the biggest reasons to embrace holiday gift cards? They drive both immediate revenue and future business. When customers purchase a gift card, they’re providing upfront revenue that helps boost sales figures instantly. And because nearly 60% of customers spend more than the gift card’s value, they often return to purchase additional products or services, resulting in a higher overall spend per visit.

Moreover, gift cards give recipients a reason to visit your store or website post-holiday season, which can be key for maintaining momentum during typically slower retail months. Each redemption presents a new chance to turn a first-time visitor into a loyal customer.

2. Expand your customer base by reaching new audiences 🎯

Gift cards don’t just bring in money—they bring in new customers! When someone buys a gift card as a gift, they’re essentially endorsing your brand and sharing it with their network. This ripple effect can introduce your brand to people who might not have discovered it otherwise. In fact, studies have shown that nearly 70% of consumers who redeem a gift card at a new store become repeat customers. 

A gift card becomes a silent brand ambassador that encourages new foot traffic or website visits. Plus, once they’re there, you have the chance to engage, impress, and retain them through an exceptional shopping experience.

3. Stand out with an omni-channel gift card experience 🌐

Holiday shoppers expect ease, convenience, and flexibility—and a well-executed, omni-channel gift card program meets these demands. With digital and physical options, consumers can buy and redeem gift cards however and wherever they like. This flexibility not only enhances customer satisfaction but also increases the likelihood of repeat purchases and redemptions, which ultimately boosts ROI.

For retailers, omni-channel capabilities mean creating touchpoints that drive customer engagement across both online and offline platforms, helping to maximise brand exposure and accessibility throughout the busy holiday season.

4. Build brand loyalty that lasts beyond the holidays 🙌

Gift cards are a fantastic tool for building brand loyalty. For one, they let customers take a piece of your brand home with them—and the simplicity of a gift card is that it’s there whenever they’re ready to use it. Whether it’s a Christmas stocking stuffer or a thoughtful token from a loved one, a holiday gift card helps forge a personal connection that can lead to long-term loyalty.

With a carefully crafted follow-up marketing strategy, you can nurture these customers through personalised offers, loyalty points, or exclusive promotions for those who redeemed a holiday gift card, turning a one-time holiday transaction into a long-term relationship.

5. Unwrap new revenue streams by entering the B2B market 🎁

Beyond individual customers, the holiday season is prime time for tapping into the B2B gift card market. Corporations often seek bulk gift cards for employee incentives, client appreciation, or holiday gifting initiatives. By partnering with B2B marketplaces, like Tillo, or offering bulk purchase discounts, retailers can unlock a new revenue stream during the holidays.

Adding a B2B component to your gift card program can create a steady source of income and provide significant exposure to new audiences, making your brand a go-to for companies looking to give back and reward. For more information about the B2B market, read our blog 'The B2B Opportunity'. 

6. Capitalise on the popularity of self-gifting 🎅

Self-gifting—when consumers buy gift cards for themselves—is becoming a major trend during the holiday season. Some customers may be on the lookout for post-holiday deals or simply want to enjoy a treat they’ve “earned” after shopping for everyone else on their list. Either way, self-gifting drives gift card sales and increases foot traffic or website visits, both of which help to build brand familiarity and stimulate more purchases.

Encouraging self-gifting through limited-time bonuses, exclusive rewards, or discounts for buying multiple gift cards is an effective way to tap into this trend and drive even more ROI.

Wrap up your ROI with a standout gift card program 🎉

Gift cards offer far more than a holiday spike in revenue; they’re a bridge to new customers, a loyalty-building tool, and a catalyst for brand awareness and engagement. With an omni-channel, customer-friendly gift card program, you can create a seamless experience that delights shoppers and brings ROI that lasts long after the decorations come down.

So, as you map out your holiday strategy, don’t underestimate the power of gift cards to drive sales, grow your customer base, and create meaningful connections. With the right approach, you’re not just gifting customers—you’re investing in your brand’s future.

To learn more about how Jigsaw can help you maximise your holiday gift card program, get in touch with us today.