Enhancing Gift Card Strategies with Customer Segmentation and Behavioral Analysis

How do you effectively advertise gift cards and impact the audience with so many disparate consumers? Well, following a segmentation and behaviour analysis is the answer.

In this vast landscape of gift card market trends, business professionals move mountains to optimize their operations. Among the most impactful strategies is the combination of two powerful tools—behaviour analysis and segmentation.

Scroll down to learn everything from scratch about customer segmentation, and behavior analysis, what are their benefits and how gift card analytics is a potential tool in driving performance & growth. 

A Sneak into Customer Segmentation

Retail business owners have understood the importance of personalized gift cards marketing since not every customer, his spending habits, preferences, and interests are the same. Personal targeting that’s meaningful to consumers opens doors for maximizing leads to conversion.

What is Customer Segmentation in Gift Cards?

Segmenting customers means, that marketers divide consumers based on certain characteristics and then target each segmentation with unique gift card strategies including messaging and advertising.

Many gift card tracking systems provide helpful data to vendors assisting them in understanding what category their users belong to. With this, brands, stores and dealers offer more refined services that connect the audience with the brand personally, helping them gain consumer loyalty.

Client Segmentation Categories

• Demographic segmentation: Consumers are divided based on their age, gender, income, family size, education level, religion, race other demographic features.

• Behavioural segmentation: It covers user internal factors of natural product usage such as tendencies, habits, social media platform or channel preference, time spent, product use, and more.

• Psychographic segmentation: It is perfect for brands that want to understand people’s personal beliefs, values, thought processes, choices, and interests.

• Technographic segmentation: This encompasses details about the technology your clients use while interacting, such as mobile or desktop, software, applications, and other technologies.

• Need-based segmentation: Who needs your products dedicatedly? The marketers target consumers based on special needs. For instance, travel gear for hikers & tourists, kids’ clothing for families, etc.

• Firmographic segmentation: Division based on which age group a consumer belongs to, is known as the firmographic customer segment. Vendors use various gift card analytics tools to find out if you’re a Gen Z, Gen Alpha, Gen Beta, or Millennial.

• Value-based segmentation: With this segmentation type, retailers target users who bring them the most value and ROI, the individuals who stick to your brand.

Criteria Followed in Segmentation of Clients for Gift Card Marketing

Gift card segmentation criteria are followed based on who your audience is and what your brand does. By taking insights from the above-mentioned data, businesses further evaluate their action and upgrade based on the division of their users.

• B2B Gift Card Market:

  In business to business or b2b gift card market, factors such as company size, job titles of decision makers, the technology used, and whether it’s private or federal are considered to make the segmentation.

• B2C Gift Card Market:

  On the other side, business-to-consumer or b2c gift vouchers marketing is planned based on personal interests & choices, geographical location, life events such as anniversaries, and birthdays, etc., and language spoken, etc.

Benefits of Customer Segmentation in the Gift Card Market

A fine-tuned message is delivered

Segmentation is quite impacting in these emerging gift card trends. Business strategists deliver brand messages based on the interests of targeted consumers, grabbing their attention more quickly. It

More redemption rates & long term relationships

Personalized gift cards strategies especially for small businesses encourage consumers to utilize coupons, reducing redemption revenue lost & liability rates. It retains clients in the long term and businesses gain frequent users that contribute to elevating your market value.

Business reaches a better competitiveness

Prepaid card services backed with gift card marketing insights collected from segmentation tracking acquire a serious edge over their competitors. It is because retention is achieved and acts as a catalyst in directing it to stable financial management that means better turnovers as well.

Brands achieve a recognized image

Imagine getting what you want without asking or researching for it on hundreds of web pages. Customers hardly forget e-commerce or online retailers who spoil them with gift card personalization. By studying users’ requirements, owners plan their steps and make consumers the happiest, giving them no choice but to become their potential buyers.

What is Customer Behavior Analysis?

As the name suggests, consumer or customer behavior analysis refers to understanding what drives users’ decisions in purchasing products.

It helps entrepreneurs & strategists study how users make choices by inspecting their emotional, geographical, and social factors. Essentially, it adds a customized taste to sellers’ products that pushes them to stay ahead in the gift card industry trends.

Why Gift Card Behavior Analysis is So Important for Business Success?

Here is why we think behavior gift card analysis is a necessity for growth seekers:

• To gain insights into consumer behavior and act accordingly to improve gift card redemption and selling rates.

• Helps in understating the impact of initiatives such as personalized gift cards for businesses, depending on which campaign strategies are enhanced.

• Client-focused voucher offers to drive higher sales and give maximum ROI.

• It enables product sellers to improve their development based on consumer interests, resulting in user retention.

How Business Perform Behavior Insights in Gift Card Marketing?

The key to scoring high in this customer-centric digital world is monitoring data to curate businesses accordingly. Marketers utilizes various data analytics applications to give users the best experience.

Statistical analysis in gift certification is a proven tool to excel. Customized gift cards for small businesses deliver specific services, helping small to medium-sized enterprises thrive. Here’s how they do it:

• Businesses utilize advanced gift card tracking and reporting tools to gather valuable information. They find out customer needs and motivation behind the purchase and usage.

• By analyzing customers’ behavior, trends, and buying patterns they find out when and why consumers utilize store credits. It helps marketers offer new services that address consumers’ needs in a better way.

• These tools assist retailers in determining customer preferences, most purchased products, and requested services, helping businesses make smart decisions about product launching & development.

How Predictive Gift Card Analysis Forecast Future Customers Needs

There’s no doubt in saying how powerful the predictive analysis is in creating personalized gift cards marketing in the future!

It is backed by the present scenario where thousands of businesses have gained a potential client base just by improving their approach based on collected data.

Marketing professionals are all set to utilize buying history, social media activities, ratings & feedback, website visits, and interacted channels to bring more effectiveness through their gift card programs.

By utilizing all this important information, businesses can easily tailor solutions depending on client segments, bringing exceptional experiences for both consumers and vendors.

How Segmentation Enhance Gift Card Offers?

Customer segmentation in gift cards allows marketers to understand which client segment to target and with which offer. As mentioned above, segmentation divides the consumers based on different factors, thus helping businesses deliver tailored gift product offerings with ease.

Here are some ways for businesses to stand out with gift card segmentation:

• Offer personalized rewards to loyal and high-value clients who repeatedly make purchases. Add some discounts as a bonus.

• Users who often buy customized gift cards for others can be offered some cheesy content such as “It’s time to treat yourself.” It evokes their attention to your brand again.

• If it’s someone’s birthday or anniversary, sending them a cute wish with a custom tag will surely bring them to you in the future.

• Promo codes with gentle reminders in their mother tongue language connect the audience deeply to the online retailers.

What Are the Benefits of Combining Segmentation and Behavior Analysis?

In modern slang, behavior segmentation is a powerful method to rise above the competition. Yes, it could be daunting, but as the saying goes, “Difficult roads often lead to beautiful destinations”, and this could not be more true in this context.

Combining both gift card market trends can have a huge impact on gift card life cycle and power up the overall business growth. So what is it? When gift card retailers sort users based on how they interact with your services. It’s useful in dividing clients into different categories and then applying gift card strategies accordingly.

For example: An e-book store recommends books based on the genre readers prefer, their age, gender, or maybe marital status. This store can also offer coupons and personalized offers to enhance their sales from frequent buyers.

Here are the top benefits of when professionals utilize these two simultaneously:

• Enhances sales: By reading clients’ minds and knowing what they want, you bring the exact service, resulting in more sales, higher conversion, and of course, the right consumers.

• Maximizes satisfaction: Combining segmentation & behavior analysis gift cards, the businesses are insanely improved. Their consumers are more contented with the relevant offers.

• Earns customer loyalty: Behavior segmentation offers a client retention approach that gives users personalized gift card rewards, gaining a loyal consumer base.

• Stays Competitive: Leveraging gift card marketing insights to create better future business strategies helps marketers get a competitive advantage.

In the Nutshell

Segmentation and behavior analysis helps business’s bottom line by scaling up their sales, retaining customers, attracting the right ones, and offering exceptional customer experience. This gift card personalization encourages users to incline more towards utilizing these credit notes that polish up brand recognition.

Sell more gift cards this season and gain a huge customer base. But before that, perform a critical gift card reporting with the best tools. BluEnt offers top gift card analytics solutions and detailed insights for businesses to perform comprehensive segmentation and behavior data analysis.

By leveraging our innovative methodologies, our smart crew assists online retailer in elevating their digital card programs. Bring profitable results and positive impact with our one-of-a-kind gift card analytic services.

Our user-centric approach leads to amplifying revenues. Let’s get started, contact us now.