8 gift card marketing strategies and best practices for year-round success

Gift cards aren’t just a convenience for shoppers—they’re a proven sales booster that can turn casual buyers into loyal customers.

This is because of browsing behavior. Someone may land on your website to redeem their gift card, but it’s likely they’ll also end up purchasing a few extra items while they’re at it. According to a Capital One survey, 61% of customers typically spend almost $32 more than the card’s value.

What’s more, browsing your offer can introduce people to your brand, period—which may lead to more purchases and a deeper relationship.

With so much potential, it’s clear that gift cards can do more than boost short-term sales. To help you tap into this opportunity, we’ve put together 8 practical gift card marketing strategies that can keep your customers coming back.

1. Distribute digital gift cards instead of physical ones

Gift cards have come a long way over time, with digital options now taking center stage. Here’s where digital gift cards have physical cards beat:

Gourmet food brand myPanier, for example, uses digital gift cards to boost sales and engagement during a busy season. Here, see how the brand taps into the holiday rush with a Thanksgiving promotion that offers a limited-time deal: “Give $50, Get $10” on their e-gift cards.

Gift card marketing pro tip: Notice how myPanier’s email instills a sense of urgency by making it clear this special gift card offer is available for a short period of time, prompting people to act quickly.

2. Partner with online creators to promote your gift cards in an engaging way

Gift card promotion through user-generated content is flexible because there are so many ways to use a gift card. Try collaborating with influencers who can:

3. Offer VIP gift cards to loyal customers

Loyal customers are already more likely to make repeat purchases, but a VIP gift card with exclusive perks gives them a strong reason to keep choosing your brand.

For example, after a loyal customer reaches a certain spending milestone, you could send them a special VIP gift card they can redeem for items that are usually off limits for gift cards, like limited-edition products or early-access collections.

Gift card marketing pro tip: By unlocking these exclusive options for VIP customers, you give them an incentive to keep engaging with your brand while subtly encouraging them to explore more of what you offer. It’s like you’re saying, “We don’t usually offer these perks—but for you, we do.”

4. Bundle gift cards with products for added value

Adding a gift card to a product bundle adds value and flexibility at the same time. This approach works especially well with popular items—customers feel like they’re getting the best of what you offer, then they get to choose a bonus later.

For example, if you sell skincare products, you could offer a bundle that includes your bestselling serum and moisturizer with a $15 gift card. With this bundle, your customers enjoy immediate benefits from your skincare products, while the gift card encourages them to return to your store again later.

Here’s a great example of how bundling can work in practice. In this email, see how DNA test kit brand CircleDNA promotes their limited time Premium Duo Gift Card Bundle—two premium DNA tests and a free digital gift card valued at $100.

Gift card marketing pro tip: This strategy resonates because the test kits are already a significant purchase, and adding a $100 gift card gives customers an extra reason to buy. They may want to gift a DNA test to a friend, and this gives them an easy way to do it within their own purchase.

5. Up-sell gift cards at check-out

When your customers are paying for their items, it’s the perfect moment to up-sell a gift card at a discounted rate. For example, if you offer a $50 gift card for $35, you’re giving someone a reason to spend a little more now and return for another purchase later.

Gift card marketing pro tip: People love a good bargain, and offering them a gift card at a lower price can make them feel like they scored an incredible deal. This tactic isn’t only a short-term sales boost—it’s also useful for encouraging repeat business and fostering loyalty.

6. Sell double the gift cards with BOGO promotions

A bonus gift card as part of a “buy one, get one” sale can help boost your average order value. BOGO deals on gift cards means that someone can find the perfect gift for a friend and get something for themselves.

Mizzen+Main, for example, uses email to notify their subscribers about their BOGO gift card promotion: customers receive a $25 bonus gift card when they buy a $100 gift card.

Gift card marketing pro tip: This simple yet effective strategy is useful for increasing sales up front and encouraging customers to come back and use the bonus later.

7. Allow customers to personalize gift cards

A personal gift card can transform a standard purchasing experience into something more special. When you offer different designs and customization options, you give people the chance to create a unique gift for a loved one.

For instance, eyewear brand ROKA invites shoppers to explore their designs and include a personal message with their gift card purchase. The CTA leads to the gift card product page, where customers can easily browse designs and turn a simple transaction into a thoughtful, customized gift.

8. Use gift cards as giveaway incentives

Giveaways are one of the go-to methods brands use to raise awareness, engage their audience, and encourage word of mouth—and gift cards are a fantastic incentive for all of these goals.

Baby brand Bums & Roses, for example, uses Instagram to host a gift card giveaway that encourages engagement with their audience. In their giveaway post, they invite followers to like their last 3 posts and comment on their favorite style for a chance to win a $100 gift card.

Gift card marketing pro tip: This approach helps the brand boost engagement, increase their follower count, and connect with potential customers.