Gift Cards are a gift to retailers, too!
While gift cards are a favorite among recipients, there are many benefits for retailers too. Closed Loop cards are especially attractive.
These are prepaid cards that can only be redeemed at the issuer’s designated locations. Therefore, they specifically drive store traffic.
In fact, gift cards are redeemed in two to four trips, on average, depending on the dollar amount loaded to the card. That’s a lot of extra trips to your store!
Gift cards also:
Attract new customers.
4% of gift card recipients report that they never or rarely visited the store for which they received a gift card.
Customers spend an average of $20.79 more than the amount loaded to the gift cards they receive. Additionally, 31% of shoppers buy an item they didn’t plan to purchase or buy a more expensive item with the gift cards they receive.
Generate interest from unredeemed balances.
You have possession of the money loaded into gift cards the moment the cards are purchased. If those funds are deposited in an interest-bearing account, you will be able to earn a return on outstanding gift card balances.
Increase brand loyalty.
Gift cards not only bring new customers into your store but when you encourage card reloads through marketing and incentives, can keep customers coming back for frequent visits.
Gift Card Messaging Strategies:
- Position value: Give a gift that keeps on giving
- Personalization: Let them choose the perfect gift
- Substitute gift: Couldn’t find the right gift? Gift cards are always the right gift
- Gift for any season or occasion: It’s a perfect gift for any occasion
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