Items on our site start in the $100 range, but there aren't many. So technically, a $50 gift card could lead to %50 savings. Average sale is around $1500.
Which would motivate your guys more $50 gift card or 25% off your next purchase?
A $50.oo "off" card on a $100.oo purchase as against a $50.oo "off" card on a 1500.oo purchase "rewards" those who spend less in "real money" with you, more than those who spend more in "real money"..<= fact ..and also that will be the perception of those who spend $500.oo or $1500.oo or $1500.oo or $5000.oo ..
25% is better..and is seen to be more fair..each is "rewarded" according to what they spend..
However, IMO and IME, what is sometimes known as "loyalty discounting" actually works better for the retailer B&M or "online" if the more the initial purchase ( IP ) the more the applicable discount..
IP = $100.oo = 25% off next purchase..
IP = $500.oo = 30% off next purchase..
IP = $1000.oo = 35% off next purchase..
IP = $2000.oo = 40% off next purchase..
IP = $5000.oo = 45% off next purchase..
( adjust the figures and the percentages to fit your margins and your average purchase amounts )
Make it clear to them that if say they spend $100.oo on IP ( thus they have repeat discount of 25% ..that it will apply to all subsequent purchases..) ..and if they make an actual ( after discount is applied ) subsequent purchase of $500.oo then their loyalty rate discount moves to 30% and so on..
Call it bronze, silver, gold, platinum etc or whatever would fit what you sell ..
The more they spend over time, the better their discount % becomes..basic "loyalty card" or "valued, privileged customer" stuff..give them a unique ID code on the card, tie it to their name on a DB, write a welcome "joe/jane" script and drop the cookies, build in the "upsell(s)" ( works for godaddy ;-)..add an "opt in" mailing list for "special privileged customer notifications"..or "send a gift to a friend for anniversaries, xmas etc .."using your discounts or points"..
The ingredients in the recipe change, depending on the customer and the product or service..but the "upsell cake" is the same..people eat it up..just make them feel "special" and that "they are getting your personal attention
"Freebies" work too ;))...Google, and others of us, know this very well, and have done so for years before Larry and Sergey were born..