How to Combine Gift Cards With Discounts in WooCommerce? 

Shoppers love gift cards. Shoppers love discounts. But what happens when you combine gift cards with discounts? You create an offer that is not just irresistible but drives more sales and keeps customers coming back.

Offering discounted gift cards or allowing customers to stack gift cards with other coupon deals can drive more purchases, encourage higher spending, and make your store the go-to shopping destination.

So, how does combining gift cards and discounts work in WooCommerce, and why should you use it? Let’s jump in!

Why stop at just offering discounts or gift cards separately when combining gift cards with discounts creates a win-win scenario?

WooCommerce e-gift cards already act as prepaid purchases, but when combined with a discount, they become a more rewarding incentive. Customers feel like they’re getting more for their money, which will then lead to higher spending, repeat purchases, and stronger brand loyalty.

Here’s why gift cards and discount combination work so well:

👉 Combining gift cards with discounts encourages higher spending.

When customers use a gift card, they often spend beyond the card value, especially when combined with a discount that nudges them to buy more.

👉 Gift cards with discounts increase the appeal of gift cards.

Offering exclusive discounts for gift card users makes gift cards feel like a smarter payment method. For example, providing an extra 10% off when paying with a gift card encourages purchases and redemptions.

👉 Gift cards with discounts are perfect for seasonal promotions.

Be it holiday sales, VIP perks, or referral rewards, combining gift cards with discounts keeps customers engaged and coming back.

For example, instead of offering a 10% discount on products, why not offer $10 off when purchasing a $50 gift card? This way, you guarantee revenue upfront while still incentivizing future purchases.

Now that we understand the reasons for combining gift cards with discounts in WooCommerce, let’s explore the best scenarios for using them in your WooCommerce store.

Combining gift cards with discounts isn’t just a promotional tactic; it’s a strategy that can be used in multiple ways to increase customer retention and drive conversions. Here are some of the best use cases for combining gift cards with discount strategy:

#1 Offering Discounted Gift Cards

When combining WooCommerce gift cards with discounts, the primary strategy is to offer gift cards at a discount. By doing so, store owners can encourage customers to purchase gift cards as prepaid credit and secure future sales while motivating repeat purchases.

Example: Buy a $100 gift card at 10% OFF!

#2 Offer Discounts on Gift Card Purchases

Gift cards are holiday bestsellers. Instead of just selling them at face value, why not sweeten the deal? Offering discounts on gift card purchases during peak shopping seasons like Black Friday and Christmas can encourage early holiday shopping and secure revenue in advance.

Example: Buy a $100 gift card for only $90. Limited-time holiday offer!

#3 Exclusive Discounts for Gift Card Users

Reward your most loyal customers by giving them access to special discounts when they use gift cards. This helps boost customer retention and encourages customers to redeem their gift cards faster.

Example: Gift card payments get an extra 10% off!

#4 Stack Gift Cards with Discounts for Clearance Sale

Need to clear out slow-moving inventory? Allow customers to combine gift cards with clearance discounts, making it easier to move stock while still ensuring profitable sales.

Example: Use a $25 gift card and get an extra 15% off all clearance items!

#5 Gift Cards as an Incentive for Referrals

Encourage your customers to spread the word by rewarding them with gift cards and exclusive discounts when they refer friends. This helps you gain new customers while keeping existing ones engaged.

Example: Refer a friend and get a $25 gift card + 10% off your next order!

Each use case combines gift cards and discounts to maximize customer spending, increase repeat business, and make your WooCommerce gift card promotions feel more valuable.

In order to combine gift cards with other coupon codes, you need first to install and activate a gift cards plugin. Here, we’ll use the WooCommerce Gift Card plugin by WebToffee. With this premium plugin, there are two ways to combine gift cards with discounts:

1. Offering Gift Cards for a Discount

After activating the gift card plugin, go to Gift cards > Gift card products to create a new gift card product. In the Product data widget, you’ll find an option called Apply Discount. Enter a percentage here to offer the gift card at a discounted price.

2. Enable Customers to Combine Gift Cards with Coupon Discounts

Go to Gift cards > General settings and scroll down to Gift card usage settings under the General tab. Enable the option Allow usage with other coupons. That’s it! Customers can now combine gift cards alongside other coupon discounts.

We’ve already explored some scenarios where gift cards and discounts work together, but the possibilities don’t stop there. Here are even more ways to use this winning combination to drive sales, increase customer retention, and attract new customers.

#6 Get Customers Hooked with First Order Incentives

The hardest sale to make is the first one. A great way to encourage new shoppers to complete their first purchase is by offering a discounted gift card as an incentive. This helps turn one-time buyers into repeat customers by ensuring they return to use the card.

Example: New customer special! Get a $50 gift card for just $40 on your first purchase.

#7 Rewarding Exclusive Customers

If your WooCommerce store has a subscription-based model or a VIP membership program, you can offer discounted gift cards to add extra value to paid memberships. This makes customers more likely to renew their subscriptions while reinforcing brand loyalty.

Example: As a VIP member, enjoy a $20 gift card with a 10% discount—just for you!

#8 Recover Abandoned Carts

Cart abandonment is one of the biggest challenges for eCommerce stores. Instead of just sending a generic abandoned cart email reminder, why not offer a small gift card with an extra discount to encourage checkout?

Example: Still thinking? Here’s a $10 gift card + 5% off to complete your order today!

#9 Increase Order Value with a Gift Card Bundle

An effective way to increase average order value is by offering gift cards as part of an upsell or bundle. By combining higher-priced products with gift card incentives, you not only drive sales but also encourage future purchases.

Example: Buy a premium laptop and get a $100 gift card + 10% off accessories!

That’s it, folks! These are just a few ways to combine gift cards and discounts in your WooCommerce store. By leveraging these strategies, you can create engaging marketing campaigns, drive conversions, and build lasting customer relationships.

Next, let’s take a look at some potential challenges when combining gift cards with discounts.

While combining gift cards with discounts brings you increased engagement and sales, it’s essential to implement it wisely. If not, combining WooCommerce gift cards and discounts could lead to profit loss, discount abuse, or customer confusion.

Here are a few key points to consider to make sure this strategy works in your favor.

➡️ Prevent Discount Abuse

One of the biggest risks of combining gift cards and discounts is customers stacking multiple discounts, which may cut your profit margins. In order to avoid this,

• Set clear rules on how gift cards can be combined with other promotions.
• Restrict coupon stacking, especially on discounted gift cards.
• Limit double discounts on certain products.

➡️ Protect Your Profit Margins

Offering a discounted gift card means giving a discount upfront while ensuring future sales. However, if not executed properly, this can impact your bottom line. So, how can you combine gift cards with discounts without hurting profits?

• Set a minimum purchase requirement for redeeming gift cards with a discount.
• Monitor redemption trends to adjust promotions.

➡️ Avoid Customer Confusion

If your gift card and discount promotions are unclear, it can lead to frustrated customers and lost sales. Customers need to know:

• How does the gift card discount combo work?
• Where and how can they redeem the gift card?
• Can it be combined with other offers?

Gift cards are a powerful sales tool. Discounts drive conversions. But when you combine gift cards with discounts, they create a compelling strategy to increase customer spending and retention.

From holiday promotions and loyalty rewards to cart recovery and upselling strategies, there are many ways to maximize the impact of gift cards and discounts in WooCommerce. By using this strategy wisely, setting clear rules, and preventing discount abuse, you can increase revenue without hurting profitability.

That’s it, folks! Have any questions about combining gift cards with discounts? Do let us know in the comments below; we’d love to hear your thoughts!

Thanks for reading!