If you’re only using gift card incentives to attract new customers, you’re missing out on an even greater benefit.
BHN research shows businesses that use rewards have a 99% higher year-over-year improvement in customer lifetime value, compared with businesses that don’t use rewards. And that’s just for starters.
Rewards Users vs. Non-Rewards Users
What’s more, Forbes predicts that customer experience (CX) will gain even more momentum in 2024, with customers increasingly willing to pay more for good experiences.
So while you may be tempted to offer discounts, building a smart CX strategy — one that leverages gift card incentives — will be a far better use of your marketing dollars.
READ MORE: Consider These 5 Channels to Create a Digital Customer Experience
Not sure where to start? Here are our top recommendations for using gift card incentives to increase customer lifetime value — and ensure your business grows organically and sustainably.
Your first step should be to reward those customers who choose to buy from you again. After all, they could shop anywhere. A reward-based promotion also gives you the opportunity to engage with your customers in a creative way that showcases your brand’s commitment to a positive user experience.
Of course, gift card incentives are also perfect for winning back former customers and getting them to make a purchase or resubscribe. Again, a fun promotion with language that speaks to why they may have left is a chance to offer the experience they’re looking for these days.
Appeasement rewards can help you stop customers from switching brands after they have a poor experience. For example, resolving a customer’s issue and then sending gift card incentives to make up for their trouble can go a long way toward retention and even help build lifetime loyalty.
Offering gift card incentives to customers who take the time to learn how to use products such as software and tools comes with a double benefit. Not only do they gain knowledge that makes them less likely to switch brands, because they don’t want to learn something new, it also shows you value their time along with their business.
Not only do gift card incentives increase an individual customer’s lifetime value, they make them more likely to recommend a brand to others. BHN research revealed that 54% would recommend a brand that offers a reward-based promotion over one that
does not.
And you know what that means. You get to begin a relationship with brand-new customers — customers who come on board without a discount or special offer that takes away from your bottom line.
Ready to begin using gift card incentives to support your organization’s long-term financial viability? Request a demo and see how BHN Rewards streamlines the process for your team.
BHN Rewards puts the power of digital rewards to work for marketers, researchers, and HR managers. Don't forget to check out all the great content in our Resources section!
BHN Rewards puts the power of digital rewards to work for marketers, researchers, and HR managers. Don't forget to check out all the great content in our Resources section!
