Almost all of today's leading retail and hospitality businesses operate a gift card program. Although the success of such a program can never be guaranteed, most programs can help drive traffic to business locations, increase sales, build brand awareness and promote purchases of higher-margin products.
With gift card spending increasing from $40 billion in 2003 to over $100 billion in 2014*, it's becoming increasingly important for small businesses to participate in this often-overlooked revenue-creating trend.
Here are the top 7 reasons to offer gift cards:
Almost everyone buys them – 8 out of 10 consumers give gift cards**
It can drive new business – loyal customers buy for friends or family
People typically spend more – two-thirds of consumers purchase more than the card value**
It’s the go-to-gift for birthdays for 60% of consumers**
Over 50% of holiday shoppers purchase gift cards**
93% of consumers prefer a $25 gift card over a gift valued at $25**
Create repeat business - it typically takes 2 visits to fully redeem a card**
Additional benefits include:
Reduced cash returns
Interest earned from outstanding balances
Easy online reporting
Reload functionality that can help you create loyal customers
Affordable program bundles that include cards, sign displays, and more