As of 2015, nearly 93% of American consumers surveyed have either given or sent a gift card. From office white elephant parties to birthday celebrations – gift cards are the staple gift. Gift cards are a simple win for your business, and while most larger merchants have adopted gift cards, far too few smaller and independent stores offer gift cards.
It is easier now more than ever for any business, of any size to offer gift cards. So, checkout these reasons you should add gift cards to your inventory.
One of the primary benefits of a well-run gift card program is increased sales. In fact, 65% of gift card holders spend an extra 38% beyond the value of the card. And because gift card recipients choose their own gifts, businesses with an effective gift card program in place spend less money handling returns.
Looking at gift cards compared to promotions and other discounts, customers perceive the benefit of gift cards as much higher - even if the benefit is similar. Because it is an immediate influx of cash to a specific store, people are more likely to spend the gift card immediately. This immediacy encourages customers to return both quickly and frequently, giving you business as well as allowing for more upsell opportunities.
Gift cards create a link between your business and the customer, one that will last long after the value of the gift card has been spent. More than half of customers will visit a retailer more than once in order to redeem a gift card’s full value, and the majority of new customers trying out a retailer for the first time after receiving a gift card time become repeat shoppers.
Retain & Attain Customers
Millennials are the most brand loyal generation; 60% are often or always loyal to brands that they currently purchase from. Foster loyalty and increase customer retention by selling gift cards. And by enabling more opportunities for customers to purchase from your store, you’re creating an army of brand loyalists. These loyalists buy more frequently and make larger purchases, impacting your bottom line.
Your army of brand loyalists use gift cards to spread the word about their favorite store. By deploying gift cards you can leverage your loyalists to reach new customers and expand your customer base.