Why Gift Card Programs For Business Are As Popular As Ever
Everyone loves giving and receiving gift cards. But did you know that gift card programs for businesses net big benefits? Start realizing these rewards today by implementing a gift card program that captures additional business, expands your customer base and makes gift-giving easy for your customers.
In late 2014, holiday shoppers spent more than $31 billion on gift cards for friends and family. In fact, the average person spent around $170 on gift cards during that shopping season(1). Not only during the holiday season, but throughout the year, there are holidays, events and birthdays that are great for giving gift cards. No matter what industry or market you’re in, you and your customers can probably reap big benefit from a gift card program.
How gift cards benefit business owners
A gift card program offers several great benefits for businesses. For one, they provide an additional revenue stream above and beyond your normal products or services. The majority of the time when shopping with a gift card in hand, shoppers don't restrict their spending to only the funds on the card. Instead, they will often spend more to maximize their gift card dollars. In this way, gift cards will help your company bring in more revenue.
Another benefit of offering gift cards is to boost your brand awareness and entice new customers from your target market. When out of ideas or short on time, loyal customers often buy a loved one a gift card to one of their favorite shops or restaurants in hopes that the loved one will also enjoy it. Therefore, you can see how gift cards can increase brand awareness and loyalty of your business by attracting a wider customer base.
Perks of gift cards for consumers
Most people have quite a lengthy list of friends, family, neighbors and colleagues for whom to purchase gifts—especially around the holiday season. Regardless of whether it’s their brother-in-law or their boss, shoppers are happy to purchase gift cards for a special occasion. Gift cards show that personal thought was put into the gift through the merchant selected, but are also open-ended enough to allow the recipient to select the perfect gift.
A survey by the National Retail Federation reported that consumers seek out gift cards for a number of reasons (1). Gift cards enable recipients to personally choose the gift they like best. In addition, gift cards are easy and fast for the giver to purchase. Today, a wide variety of gift cards are available at locations as diverse as supermarkets, drugstores and gas stations—in addition to the respective store. Gift cards are perfect for last-minute shoppers. Sometimes, recipients may even reload funds onto the gift card after the original balance has been spent, using it as their personal debit card for that store. This helps ensure that the shopper will return to your location time and time again, and will continue to spend money.
From what you’ve seen here, it’s obvious that gift card programs benefit both businesses and shoppers. If you haven’t yet implemented gift cards, consider doing so in order to boost both customer loyalty and your bottom line.