The popularity of gift cards continues to grow among buyers and recipients alike. Whether it's for the holiday season, a family member or friend’s birthday, a baby shower or simply the recognition of a loyal employee, buying gifts can be stressful. Moreover, sometimes we don’t know the recipient well or we’ve run out of gift ideas to offer them. In this blog post, we’ll explore four benefits retailers can get out of a gift card program.
1. Gift Card Users Purchase More Than the Card Value
According to a study performed by Desjardins, 53% of gift card users will spend more than the value of the gift card. This percentage could be much higher, depending on the type of retailer. Analyze your own data to factor in just how much people spend on top of the card value.
2. A Remarkable Marketing Tool
Gift cards aren’t just a product to sell among many others, they are a great marketing tool. These have several roles. In your store, gift cards help to increase your brand awareness with displays that include your brand image. Outside your store, the gift card itself plays the role of a business card or mini billboard. Imagine, every time a cardholder opens his wallet, they’ll potentially see your gift card with your logo, and therefore think of about your brand. And all this without you spending huge amounts of money promoting your business.
3. The Most Efficient Way to Attract New Customers
Implementing a gift card program will allow you to acquire new customers in a trackable, and very efficient manner. Even once you factor in the cost of card printing, transaction processing and discounting, on a per new customer acquired basis, gift cards are better than almost all traditional marketing channels.
4. Take Advantage of Distributors like Gift Card Warehouse
Now that you have a gift card program, you can join the various gift card resellers and distributors like Gift Card Warehouse. These distribution channels will bring you new customers on an ongoing basis with little to no cost, other than the discount you offer. Who doesn’t want more sales and brand exposure for their business?
Are you a retailer with a gift card program?
Add your card to the Gift Card Warehouse by joining the Fundstream retailer network