In the highly dynamic landscape of eCommerce, businesses always look for innovative ways to increase their average order value (AOV). Cross-promotion and bundling with digital gift cards have presented as powerful strategies to achieve this. By using the flexibility of digital gift cards, the businesses can ensure more spending from customers along with a better shopping experience for the customers.
In this blog, we’ll explore how cross-promotion and bundling with digital gift cards can drive sales, increase AOV, and build customer loyalty. We’ll also provide actionable strategies to implement these tactics effectively.
Understanding the Power of Cross-Promotion and Bundling
What Is Cross-Promotion?
- Cross-promotion involves marketing related or complementary products to customers based on their preferences or purchase behavior. When paired with digital gift cards, cross-promotion can:
- Promote relevant products your customers haven’t thought of buying
- Encourage a buyer to add more items into a cart
- Make the related offering more connected
What’s Bundling?
- Bundling is a strategy of collecting and selling multiple products or services under an overall price, and selling them together, usually at a savings. Digital gift cards are added to bundles so customers can:
- Enhance value
- Give easy ways to give.
- Encourage spending on Higher-margin or low-demand items.
Advantages of Cross-Promotion and Bundling with Digital Gift Cards
- Higher Average Order Value
- Gift cards sold in a bundle or cross-promotion will encourage the customer to spend more. Examples:
- Buy two products and get a $10 gift card for your next purchase.
- Purchase a gift card and get a discount on related items.
- Gift cards sold in a bundle or cross-promotion will encourage the customer to spend more. Examples:
- Better Customer Experience
- Cross-promotion and bundling give the customer a seamless shopping experience with relevant products. The customers are appreciative of the bundled deal and curated recommendations.
- Brand Loyalty Enhanced
- Cross-promotion that incorporates digital gift cards encourages loyalty since they give customers a reason to come back and shop again. The gift cards become a reason for them to return and shop.
- Better Inventory Management
- Bundling offers a way to combine fast-moving items with slower ones. This way, clearing stock is achieved while increasing overall sales.
- Gift Encouragement
- Gift cards are essentially products associated with gifting moments. Bundling them together with other products makes gifting easier and your brand an easy choice for thoughtful gifts.
Successful Cross-Promotion and Bundling with Digital Gift Cards
- Pair Complementary Products
- Identify products that go well together and bundle them with a digital gift card. For instance:
- Skincare gift set with a $20 gift card to use later.
- Coffee maker bundled with a digital gift card redeemable for Coffee beans.
- Identify products that go well together and bundle them with a digital gift card. For instance:
- Seasonal and Holiday Bundles
- Create seasonal or holiday-themed bundles. Some examples are:
- Valentine’s Day: Flowers, chocolates, and a $25 gift card.
- Back-to-School: Stationery, backpack, and gift card with online learning resources.
- Create seasonal or holiday-themed bundles. Some examples are:
- Gift Cards on Upsell
- Gift card as a bonus to spend more:
- Spend $100 and get a $10 digital gift card.
- Avail the premium bundle at a gift card of $15.
- Gift card as a bonus to spend more:
- Gift Cards for Use Later
- Gift cards, as an incentive for current orders, are used to obtain future sales:
- Buy a $50 gift card now and receive a $10 bonus card for your next visit.
- Buy any product over $75 and get a $20 gift card for future use.
- Gift cards, as an incentive for current orders, are used to obtain future sales:
- Partner with Complementary Brands
- Partner with other businesses to offer unique bundles:
- Partner with a fitness studio to offer gym memberships bundled with your brand’s gift cards.
- Partner with a restaurant to offer dinner experiences along with your e-gift cards.
- Partner with other businesses to offer unique bundles:
- Offer Exclusivity
- Use scarcity and value by making things seem exclusive:
- Limited time bundle: Purchase a $100 gift card and get an exclusive privilege of premium products.
- Holiday special: Get a $50 gift card for every purchase above $200.
- Use scarcity and value by making things seem exclusive:
- Social Media and Email Marketing
- Promote your cross-promotion and bundling deals through targeted campaigns:
- Publish beautiful visual posts that Promote bundles on social media.
- personalized email offers to customers based on past purchase history.
- Promote your cross-promotion and bundling deals through targeted campaigns:
- Mobile Optimization and Online Shopping
- Ensure your cross-promotion and bundling offers are easy to use on all devices. Ensure that the option to pay with a gift card is front and center on the product page and at checkout.
- Provide Personalization
- Make sure that your customers can personalize their gift cards or bundled products:
- Customizable gift card messages or designs.
- Customizable packaging options for bundles.
- Make sure that your customers can personalize their gift cards or bundled products:
Case Studies: Successful Cross-Promotion and Bundling with Gift Cards
- Amazon’s Gift Card Promotions
- Amazon often combines gift cards with best-selling items to boost AOV. Examples include:
- Providing a $5 gift card with the purchase of specific electronics.
- Bundling gift Cards with best-selling books during holidays.
- Amazon often combines gift cards with best-selling items to boost AOV. Examples include:
- Sephora’s Beauty Bundles
- Sephora excels at bundling beauty products with digital gift cards:
- Including a $20 gift card with a $100 purchase in their holiday promotions.
- Including gift Cards with curated Skincare and makeup sets.
- Sephora excels at bundling beauty products with digital gift cards:
Measuring Cross-Promotion and Bundling Effects
- Monitor these key metrics to measure the success of your strategies:
- Average Order value (AOV): Monitor AOV change from before to after implementing gift card bundles.
- Redemption Rates: Understand how many gift cards from promotional programs are redeemed.
- Customer Retention: Monitor repeat purchases inspired by the use of gift cards
- Campaign Performance:Social and Email Campaigns performance can be tracked.
8 Gift Card Marketing Strategies & Best Practices: This piece explores various gift card marketing strategies, including bundling gift cards with products to add value and incentivize larger purchases.
Conclusion
Digital gift card cross-selling and bundling is a great way to enhance average order value, to create sales, and to boost customer loyalty. Thoughtful, value-packed bundles can differentiate a business in the competitive market and leave customers with wonderful memories of shopping experiences.