Vouchers have long been an effective way to bring customers back into the store. But did you know that customers often spend more than the value of the voucher when they redeem it?
Customers spend more than the value of the voucher
Research shows that a significant percentage of customers spend more than the value of their voucher. According to a study by the UK Gift Card & Voucher Association and Global Data, 68% of consumers spend more than the value of their gift card when redeeming it. PaymentsJournal+1Tillo+1
In addition, research shows that using vouchers leads to extra, unplanned spending. A study published in the American Economic Journal: Economic Policy found that for every $1 in vouchers, consumers spent an average of $0.24 more on unplanned purchases.. Sabre Hospitality+1Bpb+1Bpb
The psychology behind spending behavior
The reason behind this behavior lies partly in psychology. When customers use a voucher, they often perceive it as “free money,” which encourages them to spend more. This phenomenon, known as mental accounting, makes consumers less hesitant to spend beyond their original plans. Tillo
Benefits for retailers
For retailers, this means that offering vouchers not only brings customers back but also increases the average spend per visit. Additionally, voucher redemptions provide valuable insights into customer purchasing behavior, which can help personalize marketing strategies and strengthen customer relationships.
Conclusion
Using vouchers is a powerful strategy to boost customer loyalty and increase revenue. By understanding that customers tend to spend more when redeeming vouchers, retailers can tailor their promotions and marketing efforts more effectively to align with customer behavior.
Want to find out how your store can benefit from smart voucher strategies? Get in touch with us for more information.
