Best Practices for Improving Gift Card Performance

As part of the 2023 Merchant Gift Card Omnicommerce Evaluation, Australia Edition, a comprehensive report produced by NAPCO Research in conjunction with sponsor partner Blackhawk Network, best practices for the three channels evaluated (digital/e-commerce, in-store, mobile) were included. The best practices are intended to help readers improve the performance of their gift card programs, including driving increased consumer awareness, facilitating better purchaser and recipient experiences, and ultimately generating more sales. Here's a sampling of those best practices, segmented by channel.

Digital/E-Commerce

• There are a number of opportunities for retailers to enhance their marketing strategies. The strongest gift card offerings are at risk of being overlooked without investment in effective marketing. An evaluation of promotional tactics across social channels, website, apps and marketing emails can help to identify ways to boost awareness of a gift card program.
• Drive transactions through sales promotions. Blackhawk Network’s research finds that brands that don’t run gift card promotions miss out on up to 40 percent of additional gift card revenue.

In-Store

• The best in-store gift card programs are at risk of being overlooked if they aren’t visible or informative. Scores for eye-catching, communicative signage dropped slightly year-over-year. The marketing and signposting of gift card displays shouldn’t be an afterthought. Enhancing this aspect in-store is a simple, effective way to drive attention to your offering, particularly when tied into a seasonal event.
• Added extras such as offering a gift-wrapping service for a brand’s gift cards are a great way to put a cherry on top of a customer’s in-store experience. This type of white-glove service can help foster loyalty and repeat business for the retailer.

Mobile

• There's an opportunity to take mobile optimization to the next level with improved mobile wallet-friendly experiences. In 2023, the retailer average score was 23 percent. Research from Marqeta's State of Consumer Money Movement Report 2022, found that more than 80 percent of Australians surveyed said they had used digital wallets in the past 12 months, compared with 71 percent for the U.S. and 77 percent for the UK.
• Stronger engagement with customers through mobile in-store is a great way to drive a positive user experience and foster loyalty.

This is just a small sampling of the valuable and practical tips that are included in the full report. Download the 2023 Merchant Gift Card Omnicommerce Evaluation, Australia Edition today to get all the best practices as well as insights into how retailers' gift cards programs are trending year-over-year. This data can be leveraged into increased gift card sales.