Reduce brand switching as consumers struggle with rising costs
It’s a widely-held belief that winning new customers costs you more than it does to keep existing ones. We can infer that retaining customers and working on increasing customer loyalty decreases your chances of facing the problem of customers who switch brands.
According to a recent McKinsey & Company report, 80% of Australian consumers have sought out different brands or retailers in the past 18 months, seeking better value as prices continue to rise.
Brands find it difficult to keep the customers. Nowadays customers are easily swayed by prices and switch brands in a snap. Brands are exploring multiple ways to keep their customers.
59% of Australian consumers found gift cards an appropriate reward for brand loyalty. Furthermore, 52% agreed they were an appropriate compensation to resolve a problem or an issue, while 46% saw gift cards as an appealing incentive to make a specific purchase.
Gift Cards of a brand can be used in multiple ways. Gift Cards are also used for refunds, cashback, credit notes and are a great promotional tool other than gifting.
48% of Australians had even purchased a gift card for their own use, as a faster, easier and safer way to pay for things, to manage their spending, or to take advantage of promotions or points offers. Customers are adapting to the changes around them. They are finding ways to save as much as they can. Gift Cards can give them the opportunity to do so.
The benefits for businesses go well beyond generating loyalty and customer engagement, with the survey also finding that 75% of customers spend more than the value of the gift card. According to the research, Australians spend an average 40% more than the face value, helping to further increase sales revenue.
Previous research commissioned by Blackhawk Network that surveyed 100 leading Australian companies, largely in the retail and financial services sectors, reported that 59% found reward-based promotions effective in improving customer satisfaction. Furthermore, 53% of businesses said reward-based promotions also increased customer lifetime value.
It is high time for a brand to offer gift cards to their customers giving them every reason to stay loyal to the brand.
Qwikcilver provides end-to-end Gift card technology and platform for a brand to launch their gift cards with omnichannel multi-region, multi- currency capabilities. Our state-of-the-art gift card solutions are deployed by over 250 leading merchants across the world with QwikGifTS product suite, including Lazada, Amazon Singapore, Amazon Pay, Uber, Grab, Zalora, Malaysia Airlines, Mc Donald's, Dominos, Victoria Secret and Levis many more.
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