As a retailer looking to enhance customer engagement and boost sales, you’ve likely considered (or already implemented) a gift card program. But what exactly does this entail, and how can it benefit your business?
Let’s delve into the essentials of a gift card program and explore how a gift card partner such as Jigsaw could help you unlock its full potential.
What is a gift card program?
A gift card program enables businesses to issue prepaid cards that customers can use as an alternative to cash within a specific store or network of stores. These programs are versatile, offering numerous benefits to both the issuing business and its customers - we’ll come to that a bit later.
What is the difference between closed-loop and open-loop gift cards?
When it comes to gift cards, there are two key categories: closed-loop and open-loop. As a retailer, you’ll be launching a closed-loop gift card, meaning that it is restricted to your business or chain of stores.
Open-loop gift cards, on the other hand, are generally powered by financial institutions (e.g., Visa, Mastercard) and can be used anywhere these cards are accepted. Open-loop gift cards, like Tillo’s RewardPass, offer broader flexibility for the end-user and are often referred to as a pre-paid Visa or Mastercard.
Three things to consider when launching a gift card program
Design and production
Creating visually appealing and functional gift cards involves more than just designing physical cards or generating digital codes - it's also about customer experience.
At Jigsaw, we work closely with our brands to assist them in developing both physical and digital gift card programs that cater to both their needs and the needs of their customers.
Beyond just the aesthetics of a physical or digital card, it's crucial to also focus on the overall customer experience. From the moment they land on your gift card e-commerce page to the moment they redeem the gift card at checkout.
In the digital space, this often means thinking outside of the box; looking for new and innovative ways to entice customers to engage with a digital gift card product.
Gift card distribution
One of the many benefits of a gift card program is the ability to reach new audiences via B2C and B2B distribution channels; however, navigating this complex world can be challenging.
That's where gift card experts like Jigsaw come in, giving your brand access to leading B2B and B2C distribution platforms such as Tillo, who can help you expand your reach into new markets, ensuring that your gift cards are effectively distributed from day one.
While there is still a strong desire for physical gift cards, we’re seeing an ever-increasing demand for digital and can help you set up a dedicated e-commerce website to fulfil online orders. Our built-in processor, Jigsaw360, handles all of the back-end work, and our dedicated team works on your behalf to monitor transactions for suspicious or potentially fraudulent activity.
Gift card program management
Setting up a gift card program is only half the equation; the real work begins with ongoing management. At Jigsaw, we handle everything involved in launching and distributing your gift cards - from sales promotion and customer service to e-commerce and reporting. Our existing relationships with award-winning partners like Tillo, combined with our extensive experience, allow us to give your gift card program the care and attention it deserves - focusing on maximising sales, generating new buyer relationships, and ensuring your program evolves with the times to stay relevant and successful.
Why implement a gift card program in the first place?
Having an effective gift card program can open up a lot of new opportunities to drive revenue, find new customers, increase brand loyalty and improve your cash flow, here are just some of the reasons why retailers benefit from a gift card program.
Increased revenue opportunities
Gift cards often increase sales as people typically spend around 50% more than the card’s value.
Access to new customers
Gift cards attract new customers who might not have visited your store otherwise. With the right B2B and B2C distribution partners in place they can also open up entirely new markets and spread brand awareness.
Encourage brand loyalty
Every gift card acts as a mini billboard, promoting your brand. This increases brand visibility and can lead to new customer acquisition through word-of-mouth and gift-giving occasions - 60% of people have been introduced to a new brand via a gift card.
Improve your cash flow
Gift cards provide immediate cash flow since they are paid for upfront. This can be particularly beneficial during slower sales periods, helping to stabilise your revenue.
What do customers get out of gift cards?
As a retailer, you’re probably always thinking about the end consumer. So, what do they get out of your gift card program?
Convenience
Gift cards simplify the gift-giving process, providing an easy solution for any occasion. They save the giver time and offer the recipient the flexibility to choose their own gift. We’re also seeing an increasing number of consumers purchasing gift cards for self-use, using them as a tool to help them with budgeting during the cost of living crisis.
Flexibility
Whether buying for self-use or for gifting gift card customers appreciate the ability to select products they truly want or need from your brand enhancing their overall shopping experience. By adding a gift card into your offering you empower your customers with more ways to interact with your brand - and who doesn’t love having more choice?
Savings
Should you choose, you may want to consider offering gift-card discounts as a part of your gift-card program to certain B2B or B2C buyers. These discounts can also be passed on to the end consumer allowing them to save on purchases they make at your brand. If you’d like to explore the option of gift card discounts then Jigsaw can help you navigate this space.
How to launch a gift card program the easy way
Let Jigsaw do it for you; we’re gift card experts!
There are so many different moving parts when it comes to managing a gift card program and we can help you take care of them all.
We offer the complete solution to launch, manage and grow your gift card program, giving you access to an entire suite of specialist services including:
- International expansion
- Project management and innovative technology
- Sales promotion
- B2B sales and partner management
- Customer service, operations and fulfilment
- Finance and reporting
- Customer data at your fingertips
Ready to find out more?
Get in touch with Jigsaw today and join the likes of ASOS, Costa, Hotels.com and Wagamama who already entrust us to manage their gift card programs.
