The gift card industry is huge. No question about why either. Gift cards are an easy buy for every occasion, allow the recipient freedom to choose from a variety of gifts, and give stores a boost in sales and returning business. As such, it would be unwise to overlook them as a profitable addition to your store. Here are a few other reasons to look into including gift cards in your business strategy today.
1. It’s a highly requested gift item
Gift cards give the recipient the freedom to choose their gift, but also give time-crunched gift shoppers an easy way out of hours long searches for the perfect gift. With easy purchasing versatility, it’s no wonder how gift cards have remained the most popular wish list items for the 12th year in a row.
2. There’s zero profit loss involved
When a gift card is sold, stores receive an instant increase in cash flow. The full value of a card purchase goes directly to the retailer regardless of whether or not it is spent. In some states, you may be able to keep those funds on abandoned, unredeemed gift cards. There’s zero profit loss, so you have everything to gain and nothing to lose.
3. It results in increased brand awareness
When your evangelists purchase a gift card for friends, it gives them a way to convert those friends into customers. As they shop with your store, brand familiarity sets in, often encouraging repeat business and the possibility of them becoming a brand advocate.
4. Consumers spend more than the value of their gift cards
According to the National Retail Federation Gift Card Spending Survey, 65% of gift card holders spend an extra 38% beyond the value of the card. Consumers are more willing to spend money gifted to them than of their hard-earned paychecks, prompting customers to buy more than they may usually have. Often this means that they’re spending more than the gift card itself.
5. They’re perfect for omnichannel marketing efforts
Whether they buy from your brick and mortar, social media pages or groups, or your mobile app, they can effortlessly use their gift cards on them all. Not only that, but you can easily incentivize those gift cards so you can encourage specific shopping behavior, such as advertising a small discount to customers that use them on your mobile app where they’re likely to spend 4x more.
6. They help you compete with other businesses
Maybe you won’t derail e-commerce giants overnight, but you can have a slice of the pie all the same. Nearly every business provides gift card options for their customers. Make sure you get in on the opportunity by providing your own.
Gift cards remain a popular gift item and will continue to grow in popularity every year. Because they’re highly sought after, regularly purchased, increase a store’s revenue without any profit loss, are a driving force behind brand recognition, and act as a great incentive for more sales and a way to compete with other businesses, they obviously have much to offer your shop. If you want to take your sales to the next level, offering gift cards certainly seems like a smart and effective way to do so.