From Holiday Sales to Lasting Customer Relationships

 

The holiday season is one of the busiest periods of the year for retailers and shopping destinations. Gift cards are a natural part of that activity: they are easy to give, let recipients choose what they really want, and can introduce people to stores, brands and destinations they might not have visited otherwise.
 

But there is a question worth asking before the holiday rush begins: what happens after the gift card is redeemed?
 

Gift card sales and redemption rates are important measures. They tell you how many cards were sold, how much value was loaded and how much was spent. But they do not necessarily tell you whether a recipient discovered a new favourite store, joined a loyalty programme, returned a few weeks later or became a regular customer.

Imagine someone receiving a €50 gift card for a shopping destination they have never visited. Until that moment, they may have had no relationship with the destination at all. They might not know which stores are there, what experiences are available or whether there is a loyalty programme worth joining.

When reviewing gift card performance this season, ask: what happened to the customer after redemption? Start with the information you already have. Can you see whether a recipient joined your loyalty programme? Can you identify a later visit or interaction? Begin with one measurable next step, review what the data tells you, and use the findings to improve the customer experience.

Gift cards are often treated as a simple product. A customer buys one, gives it to someone else, and the recipient eventually spends the available balance. From an operational perspective, that is a perfectly reasonable way to look at it. From a marketing perspective, however, it leaves out one of the most interesting parts of the journey: the person receiving the gift may be a new customer.

The Solal Marketing Conference and Awards in Budapest served as a timely reminder of where retail destinations must focus today. Beyond the awards, what distinguished the gathering was an uncompromising commitment to practicality: prioritising approaches that genuinely deliver results on the ground right now.