If you want to increase your brand’s loyalty, consider using gift card offers and discounts!
February 2026 | PerfectGift Experts | 5 minute read
Main image courtesy of New Ground Coffee Magazine.
Gift cards have long been dismissed as the "easy way out" of gift-giving—a last-minute solution lacking personal touch. But for brands, they're anything but impersonal. In fact, when strategically implemented, gift cards represent one of the most powerful tools in the modern marketer's arsenal for building lasting customer relationships and driving brand loyalty.
Think about it: when someone receives a gift card to your brand, they're not just getting a predetermined dollar amount. They're getting an invitation—a reason to walk through your doors or visit your website, often for the first time. And that first impression, facilitated by the goodwill of a gift, creates a psychological foundation that's far more valuable than a single transaction.
The numbers tell a compelling story. Studies show that gift card recipients typically spend 38% more than the card's value, introducing them to products they might not have discovered otherwise. Even more striking, these customers often return, making additional purchases long after the gift card balance hits zero. The initial gift becomes a gateway to an ongoing relationship.
But the real magic of gift cards extends beyond the recipient. They transform your existing customers into brand ambassadors, creating a multiplier effect where loyal patrons actively recruit new ones. When someone chooses to give your brand as a gift, they're putting their personal reputation on the line, essentially vouching for your value.
In this post, we'll explore how forward-thinking brands are leveraging gift cards not just as revenue generators, but as strategic instruments for deepening loyalty, expanding customer bases, and creating memorable brand experiences that keep people coming back.
Why brand loyalty is essential
It’s important for brands to understand (and improve) customer loyalty
You work hard to get customers, so make sure your marketing strategy includes building their loyalty! Image courtesy of American Express.
Brand loyalty isn't just a nice-to-have metric—it's the difference between surviving and thriving in today's hyper-competitive marketplace. Here's why it's become absolutely essential:
The Economics Are Undeniable
Acquiring a new customer costs five to seven times more than retaining an existing one. Loyal customers don't just return more frequently—they spend more per transaction, often 67% more than new customers according to some studies. When you consider that increasing customer retention by just 5% can boost profits by 25% to 95%, the business case becomes crystal clear. Loyal customers are simply more profitable, generating sustainable revenue streams that don't require the constant drain of acquisition costs.
Word-of-Mouth Becomes Your Best Marketing
Loyal customers are your unpaid marketing team. They recommend your brand to friends, defend you on social media, and provide authentic testimonials that money can't buy. In an era where 92% of consumers trust recommendations from people they know over any form of advertising, these brand advocates are worth their weight in gold. Their endorsements carry credibility that no ad campaign can replicate.
Stability in Uncertain Times
Markets fluctuate. Competitors emerge. Trends shift. But a loyal customer base provides ballast when conditions get rough. During economic downturns or crises, loyal customers continue purchasing while deal-seekers disappear. They give you the breathing room to innovate, the forgiveness to make occasional mistakes, and the stability to plan for the long term rather than constantly chasing the next transaction.
Premium Pricing Power
Brand loyalty liberates you from the race to the bottom on price. When customers are loyal, they're buying based on trust, experience, and emotional connection—not just the lowest price tag. This means better margins, less dependence on discounting, and the freedom to invest in quality and innovation rather than constantly cutting costs to compete.
Valuable Feedback and Co-Creation
Loyal customers care enough to tell you what's working and what isn't. They provide honest feedback, participate in beta tests, and help shape your product development. This insight is invaluable for staying relevant and continuously improving. They're invested in your success because they see your brand as part of their identity or lifestyle.
Resilience Against Competition
Every day, competitors are trying to lure your customers away with flashy promotions and promises. Brand loyalty is your defense. It creates switching costs—not necessarily financial ones, but emotional and psychological barriers that make customers think twice before jumping ship. The relationship you've built becomes a moat around your business.
In essence, brand loyalty transforms transactional relationships into partnerships. It's the foundation for sustainable growth, allowing you to build a business on something more enduring than the latest marketing trend or promotional discount. In a world where consumers have infinite choices at their fingertips, loyalty is what keeps them choosing you.
How businesses can improve brand loyalty
Building brand loyalty requires a multifaceted approach that combines emotional connection, tangible value, and consistent positive experiences. Here are the most effective strategies businesses can employ:
Deliver Exceptional Customer Experiences
Loyalty starts with the basics done exceptionally well. Every interaction—whether it's browsing your website, speaking with customer service, or unboxing a product—should reinforce why customers chose you in the first place. Train your team to go beyond solving problems to creating memorable moments. Zappos built an empire on this principle, empowering employees to spend hours on calls if needed to ensure customer satisfaction.
Create a Robust Loyalty Program
Reward repeat purchases with points, exclusive access, or tiered benefits. Starbucks Rewards is a masterclass in this approach, gamifying the coffee-buying experience and making customers feel valued for their loyalty. The key is making rewards achievable and desirable—if customers feel like they're earning something meaningful, they'll keep coming back.
Gift card offers are one of the best ways to build (and maintain) brand loyalty. Image courtesy of Clover Blog.
Leverage Gift Cards Strategically
Gift cards are loyalty builders in disguise. Offer bonus gift cards with purchases during holidays or special promotions—buy $50, get a $10 gift card for a future visit. This not only incentivizes the initial purchase but guarantees a return visit. Consider implementing a gift card referral program where existing customers earn rewards when their gift card recipients make their first purchase. You can also create branded, beautifully designed physical gift cards that recipients are proud to carry in their wallets, keeping your brand top-of-mind.
Implement Smart Discounting
While constant discounting can erode brand value, strategic discounts strengthen loyalty when done right. Offer birthday discounts or anniversary rewards to make customers feel special. Provide exclusive discounts to email subscribers or app users, rewarding them for staying connected. Use first-purchase discounts to convert new customers, then follow up with personalized offers based on their buying behavior. The key is making discounts feel exclusive rather than desperate—a reward for belonging to your community, not a plea for their business.
Personalize the Experience
Use data to understand individual preferences and tailor communications accordingly. Amazon excels at this, recommending products based on browsing and purchase history. Send personalized emails addressing customers by name, acknowledging past purchases, and suggesting items they'll genuinely appreciate. Personalization shows you see customers as individuals, not just transaction numbers.
Build an Emotional Connection
Share your brand story, values, and mission authentically. Patagonia's commitment to environmental sustainability resonates deeply with their customers, creating loyalty that transcends product quality. Support causes your customers care about and invite them to participate. When customers feel aligned with your values, they become emotionally invested in your success.
Maintain Consistent Communication
Stay in touch without being intrusive. Send valuable content through email newsletters—tips, stories, or exclusive previews that enrich their lives rather than just promoting products. Use social media to engage in conversations, not just broadcast messages. Show customers you value the relationship beyond the point of sale.
Combine Gift Cards with Loyalty Programs
Integrate gift cards into your loyalty structure by offering points for gift card purchases or allowing customers to redeem loyalty points for gift cards. This creates multiple touchpoints and reinforces the value of staying engaged with your brand.
The most successful loyalty strategies combine several of these approaches into a cohesive system where customers feel valued, rewarded, and emotionally connected. Remember, brand loyalty isn't built overnight—it's the cumulative result of countless positive interactions that prove, time and again, that choosing your brand was the right decision.
How do gift cards and discounts improve loyalty?
Gift Cards: Building Loyalty Through Engagement
Guaranteed Return Visits
A gift card is essentially a future appointment with your brand. When customers or recipients hold your gift card, they have unfinished business—a compelling reason to return. This isn't just another transaction; it's an opportunity to create an exceptional experience that converts them into repeat customers. The initial visit might be driven by the gift card, but the experience determines whether they come back again.
Lower Barriers to Trial
Gift card recipients experience your brand risk-free, making them more open to exploration. They're willing to try products they might not purchase with their own money, broadening their exposure to your offerings. When they discover something they love during that gift card visit, they become paying customers who return at full price.
Overspending Creates Deeper Engagement
Research shows gift card users typically spend 20-50% more than the card's value. This incremental spending isn't just revenue—it's expanded product discovery. When customers leave with more than they initially planned, they've experienced more of your brand and have more reasons to remember and return to you.
Turning Customers into Brand Advocates
When someone purchases your gift card, they're recommending your brand to their network. This act of advocacy actually strengthens their own loyalty through psychological consistency—they become more committed to brands they've endorsed. Additionally, successful gift card experiences create two loyal customers: the giver feels validated in their choice and continues using your brand, while the recipient becomes a new loyal customer.
Extended Brand Presence
Physical gift cards remain in wallets; digital ones live in apps and email. Either way, they provide repeated brand exposure over time, keeping you top-of-mind until redemption and even after. This visibility advantage is marketing that customers willingly carry with them.
Discounts: Psychological Loyalty Drivers
Reciprocity and Appreciation
When you offer customers a discount, you trigger the psychological principle of reciprocity—people feel compelled to return favors. A well-timed discount makes customers feel valued and appreciated, creating positive emotional associations with your brand. These feelings translate into continued patronage and word-of-mouth recommendations.
Exclusive Access Builds Community
Offering discounts exclusively to loyalty members, email subscribers, or app users creates a sense of belonging to an insider group. This exclusivity makes customers feel special and valued beyond their purchasing power. When people feel they're part of a community with special privileges, they're far more likely to maintain that membership through continued engagement.
Rewarding Behavior Reinforces Habits
Strategic discounts that reward specific behaviors—repeat purchases, reaching spending thresholds, or engagement milestones—create positive reinforcement loops. Birthday discounts, anniversary rewards, and loyalty tier benefits make customers feel recognized as individuals rather than transaction numbers. This recognition builds emotional investment in the relationship.
The most sophisticated loyalty strategies combine gift cards and discounts synergistically:
- Bonus gift card promotions: "Spend $75, receive a $15 gift card for your next visit" rewards the current purchase while guaranteeing return engagement
- Loyalty discount on gift cards: Offer loyalty members 10% off gift card purchases, encouraging them to become advocates while feeling rewarded
- Gift cards as loyalty rewards: Surprise top customers with gift cards as unexpected thank-you gifts, combining emotional impact with guaranteed re-engagement
- Tiered discount structure: Progressive discounts based on spending levels motivate customers to reach the next tier, increasing both purchase frequency and basket size
Using PerfectGift corporate to boost loyalty
PerfectGift makes it easy to create gift card campaigns designed to improve loyalty
It’s easy to leverage gift card offers to increase brand loyalty when you go with PerfectGift corporate. Our dedicated team makes it easy to create gift card campaigns that will boost brand loyalty and keep them coming back for more. Use gift cards to encourage customers to come back and spend again, or use them as rewards for meeting a milestone or achieving loyalty points. PerfectGift corporate has a dedicated customer portal that allows you to co-brand Visa gift cards, or choose from hundreds of popular merchants. Not to mention it’s simple to set up.
All you need to do is:
- Determine the amount you want on each card
- Personalize it with your brand (another way to boost customer loyalty!)
- Add a customized message
- Determine if you want a physical gift card or a digital gift card
There are no minimum orders and you can always observe how each campaign does in your dedicated customer portal. The major reasons businesses go with PerfectGift corporate include:
- Our own fulfillment center which allows us to print and ship customized cards same day with next day delivery available
- Google and Apple wallet compatible
- Added savings options
- Product options with access to funds of unclaimed gifts
- Dedicated account manager with 365-day support
- Secure card activations for VISA & Mastercard
- Access to gift cards up to $10,000 / card value
- International acceptance of VISA & Mastercard
- Multiple VISA & Mastercard card expiration periods of 6, 12, 24 and 36 months (funds never expire)
- Self-serve management of resend, replace, reissue & refund gift cards
- Multiple payment options including check, ACH, wire, RTP & credit card
Harness the power of gift cards and discounts to improve customer loyalty
Gift cards and discounts aren't just promotional tools—they're relationship builders that create loyalty through psychology, emotion, and tangible value. Gift cards guarantee return visits, transform customers into advocates, and introduce new buyers with built-in goodwill. Discounts make customers feel valued, encourage exploration, and trigger reciprocity that extends far beyond the initial savings.
