Expert answer · 2 min read
What is the best discount strategy for Mother's Day gift cards?
The short answer
In depth
Best Discount Strategy for Mother's Day Gift Cards
Gift cards are a unique product category because they represent deferred revenue. A customer who buys a $100 gift card creates a liability on your books: you owe $100 in product to the eventual redeemer. Discounting the card adds a second layer of margin erosion on top of that liability.
Why Direct Gift Card Discounts Are Risky
- Double discount risk: A gift card sold at 20% off will often be redeemed using another promotion, compounding the margin loss.
- Redemption timing uncertainty: Gift cards may be redeemed months later during a different promotional period, making financial planning difficult.
- Full-price perception: Once customers know you discount gift cards, they will wait for the sale before buying future gift cards, eroding year-round gift card revenue.
Better Approaches for Gift Card Promotion
| Strategy | Example | Benefit |
|---|---|---|
| Bonus card with purchase | Buy $100, get $15 bonus | Drives higher AOV, future return visit |
| Free gift wrapping for cards | Physical envelope and card | Makes digital gift feel tangible |
| Personalized digital card | Custom message and design | Increases perceived gift value |
Positioning Gift Cards as the Premium Last-Minute Option
In the final 72 hours before Mother's Day, gift cards become the most practical option for procrastinating shoppers because they guarantee delivery. Position them as a premium, guilt-free gift choice rather than a fallback option. Messaging such as Give her exactly what she wants frames the gift card as thoughtful, not lazy.
Growth Suite: Post-Purchase Upsells
Growth Suite post-purchase offers can present a bonus gift card offer immediately after checkout, increasing gift card revenue from customers who just completed a product purchase and are in a high-receptivity state.
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