Maximizing holiday revenue: Strategies to help boost gift card sales

The holiday season not only brings twinkling lights, festive treats, and good tidings but also a golden opportunity for businesses to boost their revenues via a flurry of gift card sales.

To many shoppers, gift cards are ideal, hassle-free gifts for coworkers, friends, and loved ones. Versatile and customizable, they remove the stress of picking the perfect gift, instead allowing recipients to choose their own.

But with so many businesses competing for shoppers’ attention, it's crucial to leverage tried-and-true gift card marketing strategies to help you rise above the chaotic holiday noise. From compelling offers to omnichannel marketing campaigns, explore our tips to maximize your gift card sales and drive more revenue this holiday season.

Crafting compelling gift card offers and campaigns

When it comes to gift cards, there’s no reason you have to stick with solely retail gift cards loaded with a specific dollar value.

Instead, mix it up by offering different types of gift card offers and gift card campaigns, such as:

• Limited-time promotions: You can create urgency and encourage immediate purchases by making gift cards available for a short period at a discounted price or with extra incentives. For example, you could offer "Buy One, Get One Free" deals on all gift cards from November 15th through December 15th or early bird 15% discounts on gift cards purchased before December 1st.
• Bonus value deals: Increase your gift cards' perceived value and attractiveness by offering extra monetary incentives when customers spend over a certain threshold. For instance, you could entice customers by providing an additional $10 in credit when shoppers purchase a gift card worth $50 or more.
• Customization option: Allowing gift-givers to customize their digital and physical gift cards with messages or designs lets them add a personal touch that recipients will appreciate.

Gift card promotion ideas online and in-person

Where should you promote your gift cards? With gift guides and doorbuster deals grabbing shoppers’ attention left and right, developing a strategy that combines online and in-person channels will help you stand out amidst the holiday shopping frenzy.

Online gift card promotion ideas

The key to successfully promoting and selling gift cards online is attracting shoppers to your website in the first place. Use these tips to attract, engage, and convert site visitors:

• E-commerce integration: Promote gift card offers prominently on your website, like the homepage or a sitewide banner. To ensure a smooth purchasing process, optimize your checkout process to seamlessly accept online purchases regardless of whether shoppers use mobile or desktop. Also, ensure customers can instantly email or print virtual gift cards after they hit the Purchase button.
• Social media campaigns: Social media is a great way to build excitement and spread awareness of your holiday offerings, including gift cards. Leverage platforms like Facebook, Instagram, and TikTok to showcase your different gift card offers, create buzz, and engage potential customers. You can even run holiday contests and giveaways for followers to win a gift card or two.
• Email marketing campaigns: Consider running targeted gift card email marketing campaigns to reach previous customers with holiday-specific gift card promotions. Even better, tailor email content and offers based on customers' purchase history or product preferences for a more personalized touch. Given that gift cards are a great last-minute stocking stuffer, you can even create a campaign for procrastinators who don’t want to pay for expedited shipping.

In-person gift card promotion ideas

Like online selling, you’ll need to strategically maximize visibility and appeal when promoting gift cards in brick-and-mortar locations. Boost your in-store sales with these gift card promotion ideas:

• Eye-catching displays: Set up gift card racks, towers, or endcaps near registers to capture impulse purchases. Use signage and decorations to highlight current gift card deals.
• Staff training: Train cashiers to mention gift card promotions and suggest gift card purchases for customers looking for product recommendations. You can even provide incentives or bonuses for employees who contribute to increased gift card sales.
• Value-added perks: Offer free gift wrapping or bonus loyalty points with gift card purchases to add more enticement.

Offer gift card bundles

The frenzy of the holiday shopping season can feel overwhelming. So one way to alleviate shoppers’ decision paralysis is by offering attractive gift card bundles.

By combining gift cards with related products or services, you not only increase its perceived value but also drive more sales. For example, a spa might curate a package with gift cards for discounted services alongside a gift box of scented candles, bath bombs, and essential oils.

To create even more irresistible gift bundles, consider partnering with other businesses. A clothing boutique could partner with a nail salon to provide a “New Year New Me” closet overhaul and self-care package that includes gift cards to both businesses. These joint ventures expand your offerings while delivering additional convenience to gift-givers.

Not sure how to get started? You can use product catalog management software to identify your best-selling products, then use it to create product bundles within your product catalog.

Influencer collaborations

In addition to traditional advertising and marketing, consider partnering with social media influencers to promote your gift card offers. Genuine enthusiasm and endorsement from an influencer can lend credibility and appeal to your gift cards – studies have found that within the last three months, 33% of Gen Z-ers have bought a product that an influencer recommended.¹

Try to identify influencers whose interests and values align with your business. Even better, look for ones with an engaged local follower base who can speak authentically about their experience with your products or services.

Charitable tie-ins

The holidays are the season of giving. The feel-good, emotional appeal of giving back can be more effective than simple discounts. Customers often appreciate businesses contributing to meaningful causes and community organizations.

Consider announcing special donation incentives. For example, you could pledge to donate 5% of all holiday gift card sales to a local food bank or toy drive. Alternatively, you might donate $5 from every $50 gift card sold to an animal shelter.

Elevate your holiday revenue with strategic gift card sales

With shoppers ready to splurge on gifts for their loved ones, the holiday season provides a prime opportunity for businesses to boost revenue. By crafting attractive offers and utilizing multiple marketing channels, you can engage customers, drive strategic gift card sales, and unlock overall growth.

Is your business ready to win this holiday season? PayPal Business tools help you attract new customers and engage existing ones — all while encouraging them to choose you for their holiday shopping.