Gift card marketing: 13 campaigns you should try

Customers love receiving gifts from brands. What if there was a way to make your customer happy but also to drive up revenue and improve cash flow at the same time? Gift cards, both digital and physical, are a perfect solution.

According to the Business Research Company, the global digital gift card market size grew from $342.66 billion in 2022 to $405.17 billion in 2023. There is an upward trend in this matter, as the digital card market size is expected to reach $740.41 billion in 2027. The rise in gift card purchases, especially during the holiday season, is a key factor contributing to increased sales during these peak periods.

In this blog post, I will cover the benefits of gift card marketing and analyze 13 real-life gift card campaign examples. We will go deeper into the campaign limitations and conditions as well as analyze the campaign creatives and copy.

What is a digital gift card?

Gift cards, also known as prepaid vouchers, are prepaid cards, physical or digital, that can be used as an alternative to cash for purchasing goods or services. Businesses can offer custom gift cards with unique designs and the option to include a personalized message for the recipient, making the gift more memorable and meaningful. They are typically sold by retailers, restaurants, or other brands and are purchased by customers as gifts for others or for their own use.

What is gift card marketing? 

Gift card marketing is a strategic approach where businesses use gift cards as a tool to drive sales, attract new customers, retain existing ones, and enhance brand loyalty. It goes beyond simply offering gift cards for purchase, it involves crafting campaigns, promotions, and experiences that leverage gift cards to meet broader business goals. Effective gift card marketing strategies include creative gift card offerings and innovative marketing strategies to maximize impact.

What makes gift card marketing work?

There are several powerful psychology tricks that make gift cards super effective at building customer loyalty and better customer relationships. Recipients often perceive gift cards as 'free money,' which encourages guilt-free spending and increases the likelihood of redemption.

• The paradox of choice: We all know that choosing the perfect gift for special occasions can be stressful. The paradox  of choice shows that too many options can cause anxiety. Gift cards solve this by reducing decision fatigue and making gift-giving easier while preserving thoughtfulness, hugely appealing for buyers.
• Consumer control & autonomy: people value autonomy and control. Vouchers work because they give the recipient the freedom of choice and personal empowerment as they get to choose how they want to spend gift credits.
• Mental accounting & guilt reduction: This point is especially true in today's economy. Consumers engage in mental accounting – we assign different meanings to different “buckets” of money where cash feels like "serious money" (leads to guilt when used on hedonic purchases), whereas gift cards feel like “play money” (guilt-free spending).
• Psychological ownership: Receiving a gift card triggers psychological ownership – the card is pre-committed value, mentally tagged as “mine.” There’s a very strong desire to redeem it (loss aversion plays a role — “I don’t want to waste it”). This leads to higher engagement and redemption rates compared to other forms of promotions.
• The psychology of expiration & breakage: When gift cards expire or remain unused the endowment effect is triggered (“I own this value” – regret if it’s lost). This leads to FOMO, when marketers can leverage scarcity to drive urgency, making gift cards perfect promotions for sending nudges and reminders to keep your brand top of mind.

Key gift card marketing tactics

From the retailers' point of view, gift cards can be a cheaper incentive than, for example, discounts, free products or cashback, as many gift cards expire before being redeemed. Giving away gift cards only costs a retailer if a customer uses the incentive. 

• Gift card promotions – Offer a $10 bonus card with every $50 gift card purchase.
• Holiday campaigns – position gift cards as perfect last-minute holiday gifts.
• Referral rewards – give a gift card when an existing customer refers a friend.
• Loyalty programs – reward frequent shoppers with gift cards.
• Employee incentives – use gift cards as rewards for employee recognition.
• Corporate sales – offer gift cards in bulk to businesses for employee gifts or client rewards.

The benefits of gift card campaigns 

• Drive up revenue – providing your shoppers with gift cards will undeniably generate cash flow, thanks to the endowment effect and customers wanting to use the incentives. Gift card campaigns can also boost sales and increase sales by encouraging customers to make additional purchases.
• Gain new customers – gift cards are a great way to promote your brand and excite shoppers to buy your products, especially if given to new customers who may be looking for a new brand to stay loyal to. Often, customers receive incentives for their next purchase, which encourages ongoing customer engagement.
• Promote impulse buys – shoppers are more comfortable with investing in additional goods or services when part of the purchase is covered by the amount that the gift card is issued to. Gift cards add value to the customer experience by making it easier to try new products or services.
• Increase the size of your customers’ carts – gift cards can serve as a cart-size booster, especially if you set particular validation rules concerning them, for instance, a minimum order value as a condition to use a gift card in the first place. This strategy can help raise your average order value.
• Encourage repeat business and repeat purchases – gift cards support customer retention by encouraging customers to return and make additional purchases, fostering long-term relationships and ongoing engagement.
• Track your campaign in real time – if you have a digital promotion management system, gift cards can facilitate the process of accessing your customers’ data, for example, their preferences, and also the effectiveness of your promotional campaign.
• Reduce fraud – as opposed to publicly available promotions, due to the fact that gift cards are personalized and can be redeemed just once due to validation rules, you are able to realistically combat fraud and not lose any money.

13 examples of winning gift card promotions

1. Gift card giveaways

Gift card giveaways are one of the simplest and most effective ways for brands to spark engagement, attract new customers, and build social buzz. Whether the prize is small or substantial, the promise of “free spending power” instantly motivates people to participate.

Campaign example:

James Allen have run a gift card giveaway campaign offering a $2500 gift card as a prize. To take part in the contest, participants have to find an engagement ring they like and drop a hint to their partners about it. As part of the entry process, participants were encouraged to share their engagement ring choices on social media, generating user generated content that promoted the campaign. Everyone who did so would automatically enter into the contest. The winner gets a $2500 gift card, non-refundable and not exchangeable for cash.

2. Re-engagement gift card campaign 

Re-engagement campaigns are all about giving customers a gentle nudge back into your ecosystem—and gift cards are one of the easiest ways to do that. A small credit feels like a real reward, not just another promo code, so even lapsing customers are more likely to take a second look. It lowers the friction: “You already have $15 to spend, why not use it?”

Campaign example:

Sephora launched a re-engagement campaign amongst their loyalty program members giving away $15 gift cards valid for purchases above $50 for a short period of time (11 days) in December (just before the Christmas season). 

3. Seasonal gift card campaigns (e.g., Valentine’s Day)

Seasonal events, Valentine’s Day, Mother’s Day, Black Friday, back-to-school, are perfect opportunities for brands to drop limited-time gift card offers. Customers are already in a shopping mindset, and a small credit gives them the extra push to choose your brand over someone else. It’s a simple way to stay top-of-mind during crowded retail moments without relying on steep discounts.

Campaign example:

Peppermayo is an Australian fashion brand, selling mainly online. They have launched a Valentine's day campaign sending $30 gift cards to their subscribers. 

4. New collection gift card campaign

Launching a new collection is the perfect moment to use gift cards as a spotlight tool. A small credit helps direct customers’ attention to fresh arrivals, encourages browsing, and reduces hesitation around higher-priced new-season items. Instead of discounting the new collection, which can cheapen the launch, brands use a gift card to frame the purchase as a perk: “Here’s $50 to try something new.”

Campaign example:

StyleBop.com launched a spring campaign offering a $50 gift card for the new spring designer collection. This is a great example of using gift cards to promote new product launches, collections, leftover stock, or slow-moving goods.

5. Thank-you gift card campaign 

Thank-you gift card campaigns are an easy way for brands to show appreciation while also driving repeat purchases. A small credit feels like a genuine “thanks for being with us,” but it cleverly doubles as a reactivation nudge. Customers who recently bought are already warm, giving them a gift card creates a natural reason to come back and shop again.

Campaign example:

Vivid Seats LLC have run a thank you campaign sending a $30 gift card to customers who have bought from them previously. 

6. Holiday-special gift cards

Holiday seasons are prime time for gift card promotions. Customers are already in buying mode, retailers are fighting for attention, and a well-timed gift card can be the perfect push that brings shoppers through the door, literally or figuratively. Holiday gift card campaigns tap into the natural spike in demand and turn it into an opportunity to boost both sales and foot traffic.

Campaign example:

Sleep Country launched a Christmas campaign offering $230 gift cards valid in December. The gift cards were delivered via emails but they were redeemable only in a physical store, emphasizing the in-store experience and encouraging customers to visit the store for their purchases.

7. Gift card as an incentive to check the offer

Sometimes the biggest challenge isn’t getting customers to buy, it’s getting them to look. Gift cards are a simple but powerful incentive to spark that first interaction, especially when a brand needs people to check their eligibility, browse an offer, or complete a quick step in the funnel. Even a small-value card can dramatically increase participation because it gives customers something immediate and tangible in exchange for their attention.

Campaign example:

Upstart is encouraging their potential customers to check their loan rate (and therefore get interested in Upstart offer) by offering them $10 Amazon gift cards. This tactic uses other brand’s gift cards (as Upstart does not offer gift cards) as an incentive. This campaign incentivizes customers to engage with the brand by providing a tangible reward, making it a good example of incentivizing customer interaction with the brand.

8. Acquisition gift card campaign

Gift cards can be a strong acquisition lever, especially in industries where switching providers requires effort or commitment. Offering a gift card upfront helps reduce friction and gives potential customers a clear, immediate benefit for taking the leap. It reframes the decision from “Should I switch?” to “Why not switch if there’s something in it for me?”

Campaign example:

Clean Choice Energy launched an acquisition-focused campaign offering a $50 visa gift card for those who switch to them as their energy provider.

9. Refer a friend giveaway with gift card as a prize

Refer-a-friend campaigns are a classic growth engine and adding a gift card prize makes them even more compelling. Instead of relying solely on goodwill, brands give customers a fun, tangible reason to spread the word. A gift card works perfectly here because it feels like a real reward, and it keeps the value circulating within the brand’s ecosystem.

Campaign example:

Jane launched a refer a friend giveaway where everyone who refers their friends and the referred friends get a chance to win a $50 gift card.

10. Gift cards for VIP customers

VIP customers are your highest-value audienc, so giving them exclusive gift card perks is a smart way to deepen loyalty and keep them feeling special. These customers expect elevated treatment, and even a small credit or bonus feels like a personalized “thank you” for their continued engagement. It’s less about the dollar amount and more about the exclusivity and recognition.

Campaign example:

Rocksbox sent out an email campaign with a subject line “You made the list! Gift inside 🎉 '' to their VIP customers offering them a free one month of subscription and a $21 gift card (credits) for a purchase of any jewelry in their set. 

11. Time-bound gift cards to drive a second purchase

Time-bound “second purchase” gift card campaigns are a smart way to turn a one-time shopper into a repeat customer. The idea is simple: reward the first purchase with a gift card that can only be used on the next one. It gives customers a built-in reason to come back, and the time limit adds just enough urgency to speed up the return visit.

Campaign example:

Ross Simons launched a sale where, among other promotions, if someone places an order they will get a $50 gift card for future purchases. They sent an email campaign with the subject line “Overstock Event Ends Tonight! Save Up To 67% + $50 Gift Coupon with Purchase.”

12. Gift cards to reduce loyalty liabilities (points burn campaigns)

One smart and often overlooked use case for gift cards is managing loyalty program liabilities. When too many unredeemed points sit on the books, they become an accounting burden and a financial risk, especially before year-end.

To counter this, brands run “points burn” campaigns, encouraging members to exchange large volumes of points for gift cards. This instantly reduces outstanding liabilities while giving customers something they perceive as high value.

13. Gift cards to encourage digital adoption

Another powerful, modern use case is using gift cards as incentives for digital behavior that drives long-term value, especially when launching new channels or features.

Brands may offer a small gift card for actions like:

• Installing a mobile app
• Switching to e-statements
• Setting up auto-pay
• Completing a digital profile or preferences center
• Activating a digital wallet or payment method

Digital adoption campaigns work because they significantly reduce service costs, create more engagement touchpoints, and naturally increase retention and shopping frequency. Even small incentives, like a $5 or $10 gift card, can meaningfully shift customer behavior and accelerate the move to digital channels. That’s why industries such as banking, telecom, subscription services, airlines, and retail frequently use gift cards to encourage app installs, online account setup, and other high-value digital actions.

Best practices for your gift card marketing strategy

Here are some best practices to follow when you’re integrating gift cards into the user journey:

1. The “dead value” problem

Some brands quietly celebrate unredeemed gift cards as pure profit (aka “breakage”). But breakage can erode customer trust and brand equity over time. Why? Psychological ownership makes unused cards feel like a loss to the consumer, triggering negative sentiment. In today’s world, even one viral post like “I couldn’t redeem my card” damages your reputation. Minimizing breakage is also crucial for maintaining high customer satisfaction, as it ensures customers have a positive and rewarding experience with your brand.

Here’s how to control it:

• Reward redemptions, don’t just accept breakage.
• Nudge usage – “Here’s how to make the most of your gift card” emails.
• Be transparent about expiration dates and terms.
• Use reminders – the more value the customer gains from the card, the more goodwill they associate with your brand.

You should treat gift card marketing as a customer loyalty driver, not a short-term cash grab.

2. Identity leakage

Gift cards can accidentally cause friction if brand identity mismatches the recipient’s self-image. For example, a luxury fashion brand gift card given to a thrifty or minimalist recipient will trigger resentment, not joy. This comes from the fact that consumers are more likely to engage with brands aligned with their self-perception.

Here's how to mitigate it:

• Offer choice bundles – a gift card that allows selection from multiple related brands.
• Communicate flexibility – “Use this for anything in our store, from essentials to indulgences.”
• Let buyers personalize the gifting experience – the more personal, the better fit.

3. Timing mismatch & emotional drift

If too much time passes between receiving a gift card and redeeming it, emotional disconnection can occur. Gifting is an emotional exchange, not just a transaction. Brands that keep the connection alive win long-term loyal customers.

Here's how to counteract:

• Run journey-based reminder sequences, don’t just send one expiry reminder.
• Include story-driven reminders, e.g., "Remember this was a gift from someone who cares – treat yourself."
• Encourage early redemption.

4. “Spend pain” leakage

Gift cards reduce spend pain at purchase, which is great! But be careful – if redemption processes are clunky, it can reintroduce spend pain at checkout which ultimately kills conversion. Imagine things like complex code entry, stacking problems, gift cards not covering shipping costs (unexpected out-of-pocket costs), or any other type of UX friction.

Here's how to counteract:

• Ensure redemption feels frictionless and joyful.
• Optimize checkout flow for gift cards: “Apply your gift card with one click.”
• Communicate what the card covers to set expectations clearly.

What about legal?

Gift cards are regulated products in many markets – this is a big trap for brands new to gift card marketing. Here's what you should look out for:

1. Expiration dates & breakage

Many jurisdictions prohibit expiration of gift cards (or require long validity). Some require unused balances to be refunded or handled in a specific way. For example, in the U.S. under the CARD Act, gift cards generally can’t expire for at least 5 years.

• Check local laws for each country you operate in.
• Ensure T&Cs are clearly visible to buyers and recipients.

2. Tax implications

In some jurisdictions, sale of a gift card is not taxable at issuance, tax applies when redeemed. Different rules apply to single-purpose vs multi-purpose gift cards. Legal misunderstanding this can lead to incorrect tax filings.

• Work with a tax advisor or compliance platform to set up correct tax treatment.
• Ensure accounting system tracks gift card liability properly.

3. Consumer protection rules

There are tones of rules around gift card disclosures (fees, expiry, limitations) and refunds when purchases are made with a gift card. In some regions, gift cards cannot have fees that reduce the balance over time. Non-compliance with any of there can trigger fines and brand damage.

• Have legal counsel review your gift card program.
• Display full terms & conditions clearly at purchase & redemption.

4. Data privacy & security

Gift cards are a stored monetary value, which makes them a high potential promotion fraud target. Common attacks include number scraping & testing, dode reuse, and social engineering of support teams.

• Use secure, unique voucher codes.
• Implement rate limiting & bot protection for gift card balance checks.
• Educate your support team – fraudsters often target human vulnerabilities.

Summary 

There are many ways you can use personalized gift cards as incentives, from expanding your customer base, through settling unhappy customers, to other retention, acquisition or re-engagement strategies. Effective gift card marketing leads to happy customers who are more likely to become loyal advocates.