Diggecard has outlined how small businesses can incorporate gift cards into customer acquisition and repeat-purchase activity. Its May 24, 2023 guide focuses on retailers, leisure businesses and hospitality operators considering a program of their own.

The initial purchase brings money into the business before the recipient redeems the card. Diggecard also highlights spending above the card’s value, quoting an average additional spend equivalent to 40% of that value. The article does not provide the underlying research methodology for that estimate.

Gift giving can introduce the recipient to a business they have not visited before. Drawing on its own industry experience, Diggecard says 18% of recipients become loyal customers. It presents gift cards as one route to a subsequent relationship, alongside rewards designed to encourage existing customers to return.

The guide describes several design choices: the values available for purchase, the products or services eligible for redemption and the terms attached to the card. Those choices allow a program to reflect the type of business issuing it.

For promotion, Diggecard suggests incentives linked to gift card purchases or customer referrals. Its recommendation is to treat the card as part of the business’s marketing activity, with a clear purpose for attracting a new visitor or encouraging another purchase.