Gift card bonus programs can be a powerful tool to boost sales and customer engagement for your restaurant. Incentivio offers two distinct types of gift card bonus programs, each designed to provide different benefits. This article will explain the key differences between these two programs so you can decide which one best suits your restaurant’s goals.
Important Considerations
- Clear Communication: Whichever program you choose, ensure your marketing clearly explains how the bonus value is awarded. Misunderstandings can lead to frustrated customers, so clarity is key.
- Scheduling: Both programs can be scheduled in advance and run for a specific period.
- Concurrent Programs: You can run both programs simultaneously to cater to different customer preferences.
Option 1: Offer-Based Program (Sender Receives the Bonus)
In this type of program, the bonus value is awarded to the sender of the gift card. The bonus appears as an offer in the sender’s loyalty account inbox, which they can redeem on future purchases.
For instructions on setting up this kind of offer, refer to this guide: How to Create a Gift Card Bonus Offer
How It Works:
- Example: If a customer purchases a $50 gift card, they might receive a $5 offer in their loyalty account to use on a future visit.
- Customization: You can set specific tiers based on the gift card amount (e.g., Spend $50, get $5; Spend $100, get $25).
- Flexibility: The bonus offer can be set for future redemptions and have an expiration date. For example, if the gift card is purchased in December, the bonus could be valid for the month of January.
- Targeted Offers: This program allows you to create offers that are dollar-based, percentage-based, or even specific to certain menu items.
- Loyalty Integration: Customers can also earn additional loyalty points for purchasing gift cards.
- Setup: This can be set up directly in the Incentivio admin portal.
Pros:
- Incentivizes the Sender: The person buying the gift card gets a reward, which could encourage them to purchase more gift cards or visit the restaurant more frequently.
- Customizable Offers: You have more control over when and how the bonus value is used.
- Targeted Promotions: The flexibility to create specific, targeted offers that align with your marketing strategy.
Cons:
- Loyalty Account Required: To receive the bonus, the sender must be signed into their loyalty account or have it linked to their purchase. It will not distribute any offers if they are not signed in.
- Digital-Only Purchases: This type of offer does not work for gift card purchased in-store. This will only distribute offers to customers who are signed into their loyalty account and purchase a gift card online - either for themselves or to send to others.
- Single-Transaction Redemption: Offers must be redeemed on a single transaction. For example, if the guest is given a $25 offer for purchasing a $100 gift card, they do not get to keep the additional value for another transaction if they spend less than $25.
Option 2: Bonus Value Program (Recipient Receives the Bonus)
In this type of program, the bonus value is added directly to the gift card itself, benefiting the recipient rather than the sender.
How It Works:
- Example: A customer buys a $50 gift card, and an additional $5 is automatically added to the card, giving the recipient $55 in total value.
- Ease of Use: The bonus value is automatically added to the gift card at the time of purchase, with no additional steps required by the sender or recipient.
- Marketing as a Discount: You can promote this as a discount on the gift card (e.g., Buy $50 for $40, where the customer spends $40 and receives a $50 gift card).
-
Setup: The Incentivio team must set this up. For assistance, please contact your Customer Success Manager or our Technical Support Team at support@incentivio.com.
To help expedite your request, please be sure to include:- The start and end dates for the bonus program.
- All minimum and maximum values for each tier and their respective bonus values. (e.g., Buy $25, get $5; buy $35, get $10; buy $50, get $20, etc.)
Pros:
- Simplicity: No extra steps are needed in-store; the system handles the bonus automatically.
- Immediate Value: The recipient immediately benefits from the additional value on their gift card.
- No Loyalty Account Needed: The bonus is applied directly to the gift card, so the sender does not need to be part of a loyalty program.
Cons:
- No Expiration on Bonus: You cannot set an expiration date for the bonus value—it’s available immediately and indefinitely.
- Immediate Distribution Only: The bonus value is added to the gift card as soon as it’s purchased, with no option to delay or set a future date.
- Visibility of Bonus: The bonus value won’t show up on the receipt, but it will reflect in a gift card balance check immediately after purchase.
- Multiplying Bonus Value: The bonus value does not multiply. For example, if a tier is set up to award $20 for purchasing a $100 gift card, it will not automatically add $40 for purchasing a $200 gift card. It is necessary to define a unique tier for each bonus value.
- Third-Party Gift Card Limitation: For clients using third-party gift card integrations, the bonus value will not appear as a "comp balance" on those platforms.
Which Program is Right for You?
Your choice between these two programs will depend on your marketing goals and the experience you want to create for your customers. If you want to incentivize gift card purchasers directly and offer them future discounts, the Offer-Based Program is the way to go. However, if you prefer to enhance the value received by the gift card recipient without requiring additional steps, the Bonus Value Program may be more suitable. Whichever you choose, a successful gift card bonus program is sure to incentivize customers to purchase gift cards and keep coming back again and again.
FAQ
How do I refund a gift card?
Gift cards can be refunded through your processor for your Gift Card Pool Account (e.g., Incentivio Payments, Stripe, Heartland, Braintree, etc.).
Refunding Gift Cards Purchases through Incentivio Payments
You will also need to adjust the gift card balance by zeroing out the balance.
Incentivio Gift Cards/Comp Cards
Incentivio Dashboard - Gift Cards
Option 1: The customer didn’t receive the offer. How can I verify their gift card purchase and send them the offer?
- Check CRM > Customer Account > Inbox - Offers to see if the customer has the offer.
- If the offer isn’t there, verify the gift card purchase by going to the “Gift” tab and searching for the customer’s details - either by gift card number, owner email, or sender email.
- Once you’ve confirmed the purchase of the qualifying gift card, you can manually send the offer to the customer.
For assistance with manually distributing offers, refer to this guide: Sending Activity Based Offers to Individual Customers
Option 2: How can my Accounting team track gift card liability for the bonus amount?
Use the Gift Card Pool Report and Balance Report to track gift card liability. For assistance navigating the gift card pool report, refer to this guide: The Gift Card Pool Report
Note: If you’re using third-party gift card integrations, the bonus value won’t show as a “comp balance” on those platforms.