In today’s competitive digital market, attracting and retaining new customers is crucial for the growth of businesses, especially with crowded spaces like streaming entertainment and food delivery. Bringing in new customers helps counterbalance the natural loss of customers over time. To remain competitive and thrive in the future, companies need to continuously seek out new customers and find innovative ways to attract them.
Gift cards and discount codes can be highly effective tools for brands to introduce new users to their platform’s ecosystem. By offering gift cards, brands can attract additional customers and expand their user base. Gift cards are particularly useful for reaching customers who may be challenging to target otherwise, such as those who are unbanked, reluctant to store financial information online, or prefer to use gift cards for budgeting purposes. Additionally, when gift cards are given as presents, they provide a positive and organic introduction to a brand’s services for new users.
Gift cards also serve as a means to retain users since they often return to a platform if they have gift card credits in their accounts. Studies show that consumers are more willing to spend when their money is stored digitally or on a physical card compared to cash. This psychological effect leads gift card recipients to frequently exceed the value of their gift cards, with research (Blackhawk Network) indicating that up to 90% of consumers spend an average of $52 more than the initial value of a $10 gift card.
However, launching a gift card program alone will not solve a brand’s user acquisition strategy. After implementing a gift card program, tracking and analyzing data regarding the channels and retailers that bring in the newest users through this payment method is crucial. This data helps brands understand which marketing efforts are most effective in driving new users and informs future marketing and business strategies. By analyzing the performance of different channels and retailers, brands can make informed decisions about resource allocation and focus their efforts accordingly.
While analyzing this data may require dedicated time and effort, SmartGifty can assist you. SmartGifty is a web-based gift card management solution designed for multi-shop shopping centers or businesses with multiple locations, such as shops, cafes, and restaurants. It provides customers with flexibility in gift-giving and gift-spending while offering brands an effective, transparent, secure, and easy-to-implement marketing and purchase-clearing tool. It can also be utilized for loyalty and cash-back programs, creating added value for all parties involved, including gift givers, recipients, shopping centers, retailers, and businesses.
If your brand is interested in exploring new avenues for user acquisition, a gift card program could be an ideal solution. Whether your brand currently lacks a gift card payment method or aims to enhance its gift card presence, SmartGifty can provide assistance. We offer various solutions to help brands bring new users into their ecosystem through gift card programs. Contact us to learn more about how we can contribute to your brand’s success.