September 20, 2007

Gift Card Customers

Please click on the image to enlarge it (it may be a challenge to see the small numbers in the chart, FYI).

Our industry loves to tell us that we need to have a viable Gift Card program for the Christmas shopping season.

Our industry seldom tells us how customers who purchase Gift Cards for others behave, long-term.

The Multichannel Forensics framework is well-suited to understand if customers who purchase Gift Cards for others behave, long-term.

The attached simulations illustrate what you want to see happen.
  • Customer purchases a Gift Card for another individual.
  • Other individual (not illustrated above) redeems Gift Card for merchandise.
  • Customer who purchases a gift card becomes more loyal, and spends more, long-term, than customers who don't purchase Gift Cards for others.
You have an opportunity to analyze how customers who actually purchase Gift Cards behave, long-term, vs. other customers. Hopefully, you'll find that your Gift Card program provides a double-whammy ... increased sales from the Gift Card, and increased long-term loyalty from the customer purchasing the Gift Card.

In many order-entry systems, the customer who purchased the Gift Card has a notation placed in their customer record. Use this information to your advantage!!