*This article was originally published on September 16, 2020.
I recently wrote an article about the importance of understanding customer data in relation to B2B gift card sales, and few would argue against the importance of knowing this information. Many gift card program partners recognize this and pride themselves on the breadth of their data available. However, the breadth offered by these partner programs certainly does not by itself make the data usable, especially if much of it is unclear or undefined.
For most program managers, the difficulty comes in recognizing the relevant and actionable data, which is vital to harnessing the power of these B2B programs. Below, I’ve identified three key data points that are directly indicative of program performance and can be used to inform future strategic decisions.
Data point: Most commonly sold denomination
Business goals: Increase gift card sales, increase the average gift card load value
Most gift cards in B2B channels utilize pre-determined denominations, which makes determining the most commonly sold denomination relatively easy compared to other data points. This data point can inform strategies for moving the needle for the overall value of gift card sales. For example, if the most common denomination sold is $15, a promotion with a B2B partner could be run to push the sales of $20 gift cards. Increasing the average gift card load can have even further-reaching benefits, including an increased amount of overspend at the time of redemption.
Data point: Best selling gift card design
Business goals: Increase gift card sales, acquire new customers
Gift card design is one of the most powerful strategic tools. A great gift card design is recognizable to current customers, while also standing out among a sea of other brands to catch a new customer’s eyes. Many retailers report a distinct difference between designs sold in-store and within their owned brand channels compared to top-selling designs within B2B and corporate sales programs. Due to the differences in targeted B2B program end-users, brands may find that there may even be a difference in which designs sell best between programs. For most brands, designs with products or lifestyle imagery sell best, but it is always best to test designs and review the data if possible.
Data point: Day-to-day sales trends
Business goals: Increase customer retention,drive sales during slower times
Understanding the most common days a gift card is sold is particularly important for digital gift cards because consumers often utilize these for last-minute events. Further, customers often select digital gift cards within B2B programs for last-minute self-use purchases. To fully capitalize on the sale, it is vital to understand the customers’ buying habits. This data can be beneficial for program managers in two different ways. If your brand is looking to drive sales during slower days, then running promotions on non-peak days may capture additional sales. This strategy can be particularly beneficial for restaurants, coffee shops, and even service providers such as salons. In contrast, if brands want to further capitalize on peak days, perhaps running promotions with a buy-one-get-one or spend-and-get element can increase the sale’s overall value.
These three data points are simple yet compelling pieces of information that can support gift card program growth. At Prizeout, we understand that fast access to easily digestible data is vital for our merchant partners. That’s why we have developed transparent, on-demand reporting and tools that make it easy for managers to act on the information available.
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