Deufol Packaging Solutions Blog

How to Use Creative Packaging to Turn Gift Cards Into a Marketing Tool

Posted by Bill Morgan on Wed, Jan 20, 2016
Bill Morgan
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Another holiday season has passed. If your business is in a B2C industry, it’s likely that gift cards were a big part of your holiday strategy. Whether you’re a B2C manufacturer, distributor, retailer, or even in a service industry, gift cards are an effective tool for acquiring future business. They’re also a great way to book revenue well in advance of providing a product or service.gift-card-personalization.png

However, savvy companies know that gift cards can be much more than just a simple customer acquisition tool. In fact, they can be powerful marketing tools that you can use to cross-promote other complimentary products or even to bundle products together.

How do you transform your gift cards into high-powered marketing tool? It starts with packaging. Specifically, it starts with the SKU on the packaging. With the right production process and technology, the SKU on the gift card packaging can be used to give the card specific activation instructions.

At Deufol, we’re on the leading edge of this kind of technologically-based promotional packaging. Here are a few real-world examples of how you can take your gift card program to the next level:

Promote your product launch with extra value.

When you launch a new product, you always have to battle uncertainty on the part of your customers. They haven’t tried your product before, and they may need incentive to switch from a competing brand. You can help them make that jump if you bundle your product with a gift card from a brand they already know and love.

A high end cosmetics brand did just that with one of their new products. They were planning on launching a new fragrance and they wanted to target a specific demographic. They partnered with a leading online music company that appealed to that demo. The fragrance company bundled their new product with a free music download card. The packaging had a barcode on it that linked the purchase of the fragrance with the activation of the gift card.

Use direct spend cards to guide your customers toward your other products.

You may have complementary products that are a perfect match with your core product. You want to include a gift card with your core product, but how can you be sure that your customer will use the gift card on your line of complementary products and not a competitor's?

The answer lies in something called “directed spend,” which allows a brand to sell their product packed with a special gift card that can only be spent on a specific product, brand or family of goods. You work with your distributors and retailers to design a program. Then you work with an innovative packager like Deufol to create a SKU that activates the gift card for only certain purchases.

A great example of directed spend is the shaving industry. A razor manufacturer may want their customers to also buy their brand of shaving creme. A directed spend gift card included with the razor would allow the customer to get a discounted or even free bottle of only that specific creme, giving the manufacturer an entry point to acquire new shaving creme customers.

Use multipacks to drive future sales.

Utilizing the newer multipack technology, products can be bundled together under a single SKU, either as incentive to buy a product or as a gift to drive future product sales. For example, a headphone manufacturer may want to include a gift card to a music streaming services with each pair of headphones. Or a cell phone provider may wish to offer a gift card to an app downloading service.

The packaging has a barcode on it that is linked within the system, and when the barcode is entered into the POS, the card in the pack is activated with a set dollar amount. The gift card could be a gift with purchase, or could be part of an integrated bundle to sell at a higher price point.

You can use your gift cards to drive buyer behavior and guide them toward the products you want to sell. To do so, though, you need a packager who has the experience and technological knowledge to get it done.

At Deufol, we work with customers everyday to create innovative packaging that can help drive their product and gift card sales to a new level. To learn how we can help you, contact us and schedule your free consultation today.

 


 

Bill Morgan
Bill Morgan

As president of Deufol North America, Bill Morgan is focused on building and empowering teams to drive growth. He worked for 15 years in marketing, both B2B and direct to consumer, before he took on a leadership role in the manufacturing space. Bill has solved complex business initiatives that have generated tens of millions of dollars for Deufol and resulted in breakthrough solutions for his clients.

Categories: Contract Packaging

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