Maximize Holiday Revenue and Customer Loyalty with the Right Strategy
As the holiday season approaches, retail businesses are gearing up for their most profitable time of year. Shoppers are looking for meaningful gifts and rewarding experiences, and businesses are looking for ways to increase revenue, attract new customers, and build lasting loyalty.
What’s the Difference Between Gift Cards and Loyalty Programs?
Gift Cards are prepaid stored-value cards that customers purchase and give as gifts. They’re designed to bring in immediate revenue and attract new business.
Loyalty Programs, on the other hand, reward your repeat customers. Think of points per purchase, birthday perks, exclusive offers, or tier-based benefits that keep people coming back.
- Gift Cards = New Business & Upfront Cash
- Loyalty Programs = Repeat Customers & Long-Term Growth
What Are Your Business Goals?
Understanding your goal helps you decide which solution or combination is right for your store:
| Business Goal | Gift Cards | Loyalty Programs |
|---|---|---|
| Drive repeat visits | ❌ | ✅ |
| Attract new customers | ✅ | ⚠️ |
| Increase average spend | ✅ | ✅ |
| Generate immediate revenue | ✅ | ⚠️ |
| Capture customer data | ⚠️ | ✅ |
How Loyalty Programs Work
Loyalty programs are about building relationships.
Customers earn rewards for actions like:
- Making a purchase
- Referring a friend
- Joining your newsletter
- Shopping during promotions
These rewards can come in the form of:
- Points
- Discount codes
- Free products
- Tiered VIP benefits
💡 Pro Tip: Loyalty programs can be built into your POS system, making tracking and rewarding effortless.
How Gift Cards Work
Gift cards offer a simple and effective way to generate holiday sales.
They can be:
- Physical or digital
- Branded with your logo
- Set to fixed or customizable amounts
According to research, customers spend about $29 more than the value of their gift card. Even better? 61% of shoppers spend more than the card’s original value.
That’s a holiday win for your bottom line.
The Psychology Behind Both
- Loyalty Programs create a sense of progress and exclusivity. When a customer earns points, they’re more likely to return to use them.
- Gift Cards feel like “free money” to the recipient. There’s no hesitation at checkout – which makes spending (and overspending) easy.
Both tap into powerful buying behaviors, just from different angles.
Data & Marketing Power
Loyalty programs shine when it comes to customer data. You’ll learn:
- How often someone shops
- What they’re buying
- Which promotions work
This helps you send better, more personalized marketing campaigns.
Gift cards can also capture data – especially when tied to loyalty profiles- but they’re primarily about first-time introductions and boosting your holiday revenue.
Cost & Implementation
Loyalty Programs
- Requires setup and integration
- May include monthly platform fees
- Involves reward fulfillment
- ROI builds over time
Gift Cards
- Minimal setup (especially with digital options)
- Revenue is immediate
- Can include “breakage” (unused balances)
- Easy to manage through your POS
Holiday Tip: Use BOTH for Maximum Impact
Here’s how to stack your strategy this season:
✅ Promote Gift Cards
- Offer bonuses: “Buy $100, get $10 free”
- Display prominently online and at checkout
- Feature in holiday emails and social posts
✅ Boost Loyalty Sign-Ups
- Double points during the holidays
- Give points for gift card purchases
- Offer exclusive “early shopper” perks
✅ Post-Holiday Follow-Up
- Send welcome offers to gift card users
- Convert them into loyalty members
- Keep the holiday momentum going into Q1
Final Thoughts for Retailers
Gift Cards bring people in.
Loyalty Programs keep them coming back.
Using both helps you maximize sales, drive engagement, and build customer relationships that last well beyond the holiday season.
At 610 Merchant Services, we help retail businesses set up fully integrated gift and loyalty programs that work right from your POS. Whether you’re planning a seasonal campaign or a year-round strategy, we’re here to help.
