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1、The 2023 Gift Card PlaybookTips and Strategies to Maximize Incremental Gift Card Sales and Build Loyal CustomersN O V E M B E R 2 0 2 2IntroductionGift cards,with their convenience and flexibility,have been a favorite of gift givers and gift recipients alike for decades.But within the last few years

2、,gift cards have grown even more in favorability,allowing gift givers to delight their loved ones despite challenges posed by the pandemic,inventory shortages,and shipping delays.Just like consumers,marketers,too,benefit from the power of gift cards.Not only are they a powerful substitute for consum

3、ers on the hunt for the perfect gift,but they provide an opportunity for marketers to influence gift card recipients future purchases and drive incremental sales and loyalty over time.With the holiday season upon us,and the new year following immediately after,its critical that marketers have the ri

4、ght strategy in place to capitalize on this gift card market.In this InMarket 2023 Gift Card Playbook,we unlock the key strategic recommendations for marketers to make the most of this large and powerful opportunity.67%of respondents plan to purchase gift cards during the 2022 holiday season.Base:58

5、2 US Adults Source:InMarkets 2022 Holiday Shopping&Travel survey.64%of gift cards are redeemed within the first 180 days.Source:PaytronixGift cards are the top gift this holiday season among survey respondents.In InMarkets 2022 Holiday Shopping&Travel survey,two-thirds of respondents planned to purc

6、hase gift cards this upcoming holiday season,the top gift among the nearly 600 consumers surveyed.4%10%13%14%14%18%27%27%31%41%56%67%0%10%20%30%40%50%60%70%80%TravelAlcohol beveragesExperiencesFoodSporting goodsJewelryBeauty suppliesElectronicsHome goodsToysClothesGift cardsBase:582 US AdultsSource:

7、InMarkets 2022 Holiday Shopping&Travel survey.What do you plan to buy for holiday gifts?Select all that applyBig Box(32%),Apparel(27%),and Beauty stores(23%)are the top choices for gift cards among gift givers this year.0%2%2%2%2%4%4%4%7%9%9%9%10%11%12%13%16%17%18%19%23%27%32%0%5%10%15%20%25%30%35%T

8、elecommHotelsSpasMall gift cardsAirlinesExperiences/entertainmentStreaming servicesOther gift cardsGrocery storesDollar storesHome Improvement storesMulti-store gift cardQuick service/Fast-food restaurantsGeneral(e.g.,Visa,Mastercard)Electronic storesCasual dining restaurantsCoffee shopsDiscount sto

9、resOnline-only retailersDepartment storesBeauty storesApparel storesBig Box storesWhat types of gift cards do you plan to purchase for the holidays this year?Base:582 US AdultsSource:InMarkets 2022 Holiday Shopping&Travel survey.The top gift cards respondents plan to buy include Big Box stores(32%),

10、Apparel stores(27%),and Beauty stores(23%).Coffee shops(16%)and casual dining restaurants(13%),also made the top 10 list of gift card types consumers plan to buy this holiday season.Apparel Dining Miscellaneous Travel/ExperiencesFor the last two years,gift card spending has spiked the weeks of Thank

11、sgiving and Christmas.The last two years,spending per consumer on gift cards has spiked the week of Thanksgiving and the week of Christmas.As consumers look to gather last-minute gifts for friends and family before large celebrations,its likely they turn to gift cards.Source:InMarket first-and third

12、-party purchase data.$0.00$10.00$20.00$30.00$40.00$50.00$60.00$70.00$80.00353637383940414243444546474849505152201920202021Gift Card Spend per Consumer,2019-2021$45.40$43.25$33.01$27.93$26.65$23.65$17.14$103.49$50.37$35.50$43.08$35.66$31.26$20.13$84.61$34.37$37.84$37.73$31.06$32.42$19.40$0.00$20.00$4

13、0.00$60.00$80.00$100.00$120.00EcommerceOutdoor/SportsApparel/ShoesElectronicsCasual DiningBeautyQSR/Fast FoodAverage Spend per Device201920202021Average Spend per Consumer by Gift Card CategorySeptember-December,2019-2021Gift card spend per device has fallen since peaking in 2020,but remained elevat

14、ed above pre-pandemic levels in 2021.Source:InMarket first-and third-party purchase data.Across nearly every category,average gift card spend per consumer jumped in 2020,likely due to pandemic impacts(i.e.,COVID fears,store closures,shipping delays,and inventory shortages).Ecommerce saw the largest

15、increase in average spend per consumer,rising 127%to over$100 per consumer in 2020.During the 2020 holiday season,many stores were closed or faced holiday restrictions.Ecommerce gift cards therefore provided the perfect opportunity for gift givers to secure the perfect item despite the current retai

16、l conditions.While gift card spend per consumer fell in 2021 across most categories,it generally remains higher than pre-pandemic 2019 levels.Apparel/shoes and Beauty were the two categories where spending per consumer increased in 2021this may be attributed to rising prices within these two categor

17、ies.In addition,as many workers return to the office and resume their typical daily activities,these gift cards may be even more popular as consumers refreshed their wardrobes.Promote gift card purchases during inflationary periods.Encourage loyalty program members to purchase gift cards for family

18、and friends by offering promotions,such as bundles or point redemption,to attract new customers during inflationary times.Activate likely gift card recipients with targeted audience segments.With two-thirds of gift givers purchasing gift cards this year,its likely many of your customers will be arme

19、d with at least one.Activate these shoppers with tailored messaging to encourage gift card redemption.Leverage real-time,geo-contextual marketing solutions to engage in-store shoppers.Engage in-store shoppers with real-time,geo-contextual marketing solutions like InMarket Moments highlighting curren

20、t promotions and delivering coupons to encourage redemption.Provide threshold discounts to entice shoppers to spend above their gift card value.Incentivize shoppers to spend beyond the limit of their gift card by offering threshold discounts.Encourage loyalty program enrollment at both digital and p

21、hysical checkouts.According to McKinsey,free loyalty program members are 30%more likely to spend more on the brand after subscribing,and paid loyalty program members are 60%more likely.With this in mind,driving loyalty program sign-ups should be top priority.Highlight program benefits,including savi

22、ngs opportunities,to encourage sign-ups at both digital and physical check-out locations.Employ attribution solutions to monitor gift card campaign performance and to drive optimizations.After activating your gift card strategy in the new year,dont forget to leverage attribution solutions like InMar

23、kets LCI to monitor performance.Not only can you optimize in-flight campaigns,but you can apply learnings to future campaigns.Drive gift card purchases all year round.While gift cards make great gifts during the holiday season,look to encourage purchases year-round.Gift cards present incredible oppo

24、rtunities to introduce new customers to your brand,and build consumer loyalty and drive lifetime value.Gift Card Marketing RecommendationsWith the majority of gift cards redeemed within the first 180 days,expect an influx of shoppers in the first half of the year,following the holiday season.To capi

25、talize on this opportunity and engage shoppers,leverage a combination of strategies detailed below.Done successfully,you can not only engage new and lapsed shoppers,but drive incremental sales and strengthen consumer loyalty.How InMarket Can Help You Drive Gift Card Success Given the popularity of g

26、ift cards this holiday season,dont miss the opportunity to drive incremental sales and strengthen consumer loyalty.Get started maximizing gift card success today with InMarkets omnichannel marketing solutions.BUILDMEASURELEARNA U D I E N C E SA C T I V A T I O NA T T R I B U T I O NA N A L Y T I C S

27、LEARN MOREAnalyticsAnalyze intent,location,and transactional data to unveil key prospects,identify likely gift card holders,and better understand loyal customers.Optimize future campaigns via strategic insights about your brand and competitors.LEARN MORE AudiencesTarget likely gift card holders base

28、d on location,behaviors,and motivations to drive offline visits,purchases,and gift card redemptions across multiple channels.Leverage data science and machine learning to predict future behaviors and strengthen consumer loyalty.LEARN MOREActivationReach and engage gift card holders at key Moments du

29、ring their purchase processInHome,InPath,InStore,and InHand.InMarkets real-time,geo-contextual Moments deliver industry-leading results and generate average CTRs 6x higher than the industry benchmark.*LEARN MOREAttributionOptimize gift card campaign success in near-real time based on the ability to

30、drive key KPIs with InMarkets LCI attribution solution.Precisely measure the impact of your real-time advertising efforts on driving foot traffic and sales.Better understand who your customers and gift card redeemers are,why they shop,and what they buy.COPYRIGHT 2022.INMARKET MEDIA LLC.ALL RIGHTS RESERVED.To view additional reports,please visit more information on InMarket InSights,or to learn about how InMarkets advanced segmenting and one-to-one in-store and out-of-store advertising programs can help you drive business,please contact us today.