I’m delighted to welcome you back to this new edition of the Gift Card Navigator. After the back-to-school season, it’s time to get back into our good habits: a monthly rendezvous to share concrete, actionable ideas around the world of gift cards.
Today, I’d like to start with a fascinating study conducted by Dan Ariely, Professor of Psychology and Behavioral Economics, on the power of “free.”
He demonstrates that our brain reacts very differently to something free compared to a discount. The moment a price drops to zero, we become irrational: emotion takes over from logic.
👉 A concrete example:
A Lindt chocolate priced at €0.15 vs. a Hershey’s Kiss at €0.01 → most people choose the Lindt (better value for money).
But if the Lindt drops to €0.14 and the Kiss becomes free (€0.00) → the majority switch to the Kiss… even though the price gap remains exactly the same.
Why? Because “free” changes everything:
It removes the notion of risk (“I can’t go wrong”).
It triggers an emotional reflex and a small dopamine boost.
It reframes a potential expense into a feeling of gain.
That’s why:
“Buy 1, get 1 free” works better than a simple “50% off.”
Free shipping drives more conversions than an equivalent discount.
Free samples build strong emotional attachment.
👉 So, what happens when we apply this to gift cards?
A free €10 gift card is perceived as a genuine gift, a tangible bonus:
The customer feels like they’ve gained something with zero downside.
They retain full freedom to use it whenever they want → no risk.
Psychologically, that €10 helps offset the initial expense… and often encourages them to add more to their basket.
In short: when a gift card is offered, it’s more than a promotional tool. It’s an emotional trigger that sparks purchases and increases the likelihood of upsell transactions.
In the rest of this newsletter, I’ll walk you through the different promotional mechanics around gift cards.
But first, let me share a few figures that complement Dan Ariely’s findings in the next section.
Enjoy the read,
Emilie, Buybox
Gift Card Goldmine – The Key Figure
📊58% of consumers would rather receive a gift card than a promo code (vs. only 30% for the promo code).
This means you’re creating an asset—a future return through your own channels—instead of an immediate margin reduction, while staying aligned with consumer preferences.
And among gift cards issued as part of a marketing campaign, 63% trigger an upsell transaction, with an average additional spend of €42.* In other words: a gift card doesn’t just convert—it drives a new purchase that goes beyond its face value.
*Source: Buybox
🚀 Revenue Rocket – 4 Ready-to-Activate Gift Card Promotions
Mechanic 1 – Free Gift Card (Spend X, Get Y) / Basket Threshold Campaigns
Objective
Increase AOV (average order value).
Generate repeat purchases.
Drive traffic across all channels (web, app, stores).
How it works
Standard example: “Spend €100 = Get a €10 gift card.”
Variant: €100 = €10 / €200 = €20 / €300 = €30… 👉 The higher the basket, the bigger the reward (stair-step effect).
