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.
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!!