Preemptive Strike: Boosting Gift Card Sales Thru Direct Mail

by Marisa Cogan

It seems that retailers are using a tried-and-true marketing tactic to sell more gift cards… they are mailing them directly to customers’ front doors.  That’s right!  With a little upfront investment, retailers are banking on these direct-to-home gift cards to pay off this holiday season.  Direct mail delivers an outstanding ROI, especially when the recipient feels a card inside. Plus, consumers, on average, spend 38% above the value of a gift card, which offsets the cost of the direct mail campaign and delivers a retail-win for most brands.

Here is an example of a card we recently received in the mail from TJX Companies:

Gift cards in direct mail

Here’s what makes this gift card direct mail program great:

Convenience  |  Consumers are all about convenience shopping, especially during the holidays. When time is running short, consumers don’t necessarily have time for a trip to the store or the nearest gift card mall.  Therefore, when a gift card shows up at their front door, well, it seems like a gift from heaven…and a no-brainer.  Plus this particular card is a multi-store gift card, which gives the recipient options in choosing their gift.

Attract New Customers  |  Using your house list of current card holders, loyalty members or past customers is a smart way to attract new customers. Forty percent of people who receive a gift card to a new store (that they have never visited) will visit that store simply because they have a gift card.  And those folks may become repeat or loyal customers down the road.

Simple Process  |  It is super easy for the consumer to activate the card online in the denomination of their choice.  They then detach the gift card and holder from the set of instructions (along the perforated line) and, voilà – they’re done!  Then they can either hand-deliver or mail the card to their friend or family member.

What also makes this gift card program so special is that they did not skimp on the finishes.  It arrived in a beautiful silver envelope, the card carrier is a bright festive color printed on a high-quality card stock, and the card itself is beautifully designed with silver foil-stamping.  All together, these finishes make this gift card package something worth giving.

If retailers find success with a preemptive gift card mailing during the December holidays, we may be seeing this new marketing tactic year-round.

Sources:
 http://www.nasdaq.com/article/prepaid-card-and-gift-card-statistics-cm548820
http://independentretailer.com/2015/08/25/marketing-with-gift-cards/

*CPS Cards was not involved in the production of the TJX gift card kit.

 

 

CPS Cards provides gift cards to mid-to-large sized retailers throughout the U.S.  We print, personalize and encode more than 400 million cards annually.  Need help with your gift cards? Contact us or call 888.817.8121 and let us help you get started.

 

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