It’s never too early to start talking holidays. In 2016, the holiday season began earlier than years prior with Black Friday sales starting the week prior to Thanksgiving. Taking a look at forecasted customer trends, as well as last year's sales will help you identify what items you want to push for 2017. But the sure fire item you need to sell over the holidays are gift cards.
The simplicity of offering a gift card will help you sell last minute gifts, put frustrated shoppers at ease, and rack in serious cash.
The Convenience Factor
With the increase in millennial buying power, gift cards have gained popularity. Colloquially called the “convenience generation,” the gift card has the convenience factor that millennials crave and provides gift recipients instant gratification. Gift cards empower the recipient to choose what they really want from the store, ridding your business and the recipient of one of the largest frustrations in holiday gift giving; returns. In fact, Millennials’ main reason for getting gift cards is that they don’t like having to return unwanted gifts.
And with the advent of ‘cardless’ gift cards, Millennials are finding it even more convenient to purchase and use gift cards. According to a CEB study, the 2015 growth rate of e-gift cards was 26%, and this category is expected to continue growing. Your business can both benefit from the traditional personalized, plastic card as well as cater to Millennials with a cardless option.
Not Just Millennials
While it is promising that the largest generation, Millennials, will positively impact gift card sales, there is no one identified buyer. From grandparents to the work-a-holic, gift cards uniquely transcend all customer groups. While it is important to offer gift cards it is also important to understand that each customer group has a different motivation for purchase.
Blackhawk Network surveyed 2235 gift card buyers in the US regarding their gift card buying habits. Notable findings include that the customer group classified as those purchasing gift cards on the basis of convenience spends more than any other customer groups while those grouped as Working World, were more likely to purchase gift cards for varying occasions in addition to the holiday season. Check out the full article to see all the shopping attitudes of various customer groups.
While the psychographics vary between customers, gift cards are both purchased and requested by all demographics. By integrating Customer Relationship Management (CRM) technology with your Gift Cards your business can link gift cards to a specific customer profile, keep contact information for easy reference, and track the usage of the gift card in real-time.