Why use the gift card in sponsorship operations?

Posted by Laree Light on January 18th, 2021

The sponsorship operation has been in use for a long time now, across all consumer sectors. This technique involves leveraging existing customers to recommend the brand to their circle of acquaintances. And to motivate both parties, the brand offers a reward such as the gift card, in a win-win strategy.

This method is particularly effective, considering that 83% of consumers are willing to recommend a brand, but only 29% ultimately do so. And given the impact of word of mouth (92% of consumers trust this type of recommendation), sponsorship is a great way to acquire new customers. And retain current customers by thanking them for their commitment to the brand.

And with the arrival of new rewards, such as the gift card, a brand can quickly benefit from such a marketing operation. So why and how to use the gift card?

THE GIFT CARD A REAL REWARD

For 2/3 of the companies questioned, the choice of the reward is the most decisive step in the success of the sponsorship operation. It is through her that the brand's current customer will choose whether or not to participate. It must therefore be sufficiently attractive to as many customers as possible. The "referrals" are not left out, since the reward must be motivating and interesting enough in order to take the plunge and make a first purchase. In all cases, the gift must be with the brand and its values, so as not to affect the brand image. Finally, the gifts offered can be of two different kinds: physical or digital. For plastic gifts cards, most likely from the card producer like Vigor Printing, it will be necessary to provide for all the logistics and shipping costs. Digital gifts are quick to create and send. No wonder they are appreciated by consumers who are increasingly present on the internet to do their shopping (59%). Gift cards perfectly meet their expectations in terms of rewards:

• The value
• Immediate use
• Choice

A MOTIVATIONAL GIFT

Gift card meets ones expectations perfectly. A retailer can create gift card codes on demand, with a predefined value in advance. An interesting thing, when the reward allocation model is based on the referral's first purchase. No need to plan ahead, the brand can easily trigger the creation of a card automatically.

The card will be sent to the sponsor, and usable upon receipt. And as regards the choice, the customer will be able to select among all the products and services of the mark, according to the amount of his card.

Result: today 70% of consumers are ready to use a gift card. Especially since it is very well received by customers. Associated with the idea of ​​a gift, its value is real to consumers.

THE GIFT CARD FOR PERMANENT SPONSORSHIP

A brand may decide to embark on a long-term marketing operation. That is, it is not going to put an end date. This operation will directly support its marketing strategy. However, while sponsorship is known to be a very cost effective way of acquiring customers, over the long term it is essential to maintain some profitability.

To do this, brands establish a rigorous segmentation of current customers who can participate according to the frequency and the amount of their purchase, on the one hand. And another, limit the number of referrals per referral.

In fact, if you take a closer look at what comes at the most cost, it's undoubtedly the rewards handed out. Here, the gift card can be very advantageous. There is very little to creating and issuing the card if you work with a reliable plastic card manufacturers, unlike other rewards. Then the brand always has the option of changing the amount of the card throughout the transaction.

Finally, the return on investment of a card is very attractive for the brand. Note that a cardholder typically spends more than the initial amount (they are around 59%). Due to the fact that he is more easily tempted by a higher range or that he gives in more easily to impulse purchases.

THE GIFT CARD FOR ONE-TIME SPONSORSHIP

Being a quick operation to set up and the results of which appear only a few days after the launch, brands can create a limited sponsorship in the time. Usually it happens during a busy time like Christmas. Moreover, this operation can have several different objectives which will lead to specific settings.

For example, the brand can use this type of recommendation to gain visibility, re-engage former consumers, achieve customer retention, or simply acquire new customers.

Here the gift card is an interesting reward. It allows you to quickly get a first feedback on the operation, since 42% of consumers use it immediately after receipt. Especially since the brand has the possibility of affixing on the e-card, an expiry date, which allows it to have a certain control of the traffic on the points of sale, as well as precise returns .

Finally, since the card is very popular with consumers, it will provide the necessary motivation, provided it offers a sufficient amount, and generate as many new customers as possible.

THE GIFT CARD MAKES THE SPONSORSHIP OPERATION MORE EFFICIENT

The final step of such an operation is of course the analysis of the returns: number of new customers, costs incurred, number of participants, ...

If the brand has used gift cards as rewards, it can also use the data collected (spent or not, how much, the additional amount in addition to that of the card, etc.) to determine the profitability of this marketing operation .

Certain card data such as what was purchased, at which point of sale, etc. will also allow the brand to start a personalized relationship with new customers, in order to retain them and engage them over the long term.

The gift card is an ideal reward for sponsorship operations. Appreciated by consumers, rewarding and motivating, it allows brands to make profitable their marketing operation while maximizing the number of participants.