Even when the holidays are over, the celebrations are done, and the gifts have all been opened, it doesn’t mean the shopping is far from finished. Motivated by post-holiday sales, many people will have gift cards burning a hole in their pockets.
So, for merchants to leverage holiday gift card sales, it’s important to understand which sales metrics to pay attention to and which ones to take with a grain of salt. Here are a few things to keep in mind when looking at the past holiday season in review:
1. 2020 was an unusual year.
The most important thing that businesses should remember when looking at gift card metrics this year is that 2020 was far from typical. Due to pandemic social distancing recommendations, people are shopping online more frequently. Many families also may have spent their holidays apart and may not have been able to have an in-person gift exchange. These trends actually drove high gift card sales in 2020 across most industries.
If your company saw a huge boost in gift card sales, it’s important to remember that the pandemic likely played a role. Use 2021 to capitalize on these sales gains by targeting marketing to new customers brought in from gift card sales and working to retain them.
2. Look beyond initial sales figures.
The amount of revenue that gift cards bring to a business is more than just that initial sales number. More than half of customers making purchases with a gift card will spend more than their gift card’s balance on their first trip. People who do not use their full card’s balance will often return for a second trip where they may spend more money as well.
3. Marketing value is beneficial.
Yes, sales dollars are the ultimate goal in any business, but the true value of a gift card sale is more than just the money it brings in. Gift cards are also a marketing tool for businesses. Physical gift cards in store kiosks help raise brand awareness, and virtual gift cards can be used as a tool for email marketing. When someone gives a gift card they are also essentially endorsing that business to someone else, generating more brand awareness. When assessing holiday gift card metrics, be sure to look at the number of gift cards sold and distributed in order to assess the marketing value generated by gift cards beyond just sales in dollars.
4. New customers will be gained.
Gift cards have an unrivaled ability to drive new customers to your business’s store or website. When assessing gift card sales from the holidays, consider how to use that data to generate new leads for people who could become new reliable customers.
5. Your holiday sales bump may not be over.
Gift cards are a procrastinator’s best friend. Count on some sales rolling in from people buying late or forgotten gifts.
Looking to Maximize Your Gift Card Metrics?
Physical gift cards are only the beginning for many businesses. With more people shopping online, it pays to have a digital option. We can help you add virtual gift cards to your current website so that you can expand your gift card customer base. Contact us today to schedule a consultation!