For occasions large and small, business gift cards are a perennial gifting favorite
Consumers aren't the only ones who purchase gift cards. Many businesses give gift cards to their employees either at the holidays or throughout the year as incentives or as part of a corporate recognition programs. In fact 83% of corporations use gift and prepaid cards for employee incentives.
Why are gift cards so popular for businesses? They're an easy way to reward or recognize employees without paying a huge expense. There are a variety of other benefits including:
- Provide endless retailer options. Businesses can purchase gift cards from specific retailers like Amazon or Target or purchase gift cards from the major card issuers. Gift cards from the card issuers offer the most flexibility as employees can use them to purchase practically anything.
- Convenient to purchase, store and distribute. Businesses can purchase gift cards from local retailers or banks, in person or through a variety of online sites. They can also purchase gift cards in a range of denominations.
- Require no purchase fees. Since gift cards require no additional fees, the value of the card is what the business pays.
- They're safe. Businesses can replace gift cards should they be lost or stolen.
- Can be tailored to employees' interests. Since gift cards are available at most retailers, businesses can give gift cards that reflect employees' interests, such as those for recreational activities or hobbies.
- Can be customized with a company logo or other design. Businesses can brand gift cards with their logo, the employee's name, holiday wishes or a congratulatory message.
- Can be given to volunteers and customers. Gift cards aren't just for employees. Businesses often give them to volunteers or customers as thank you gifts or as part of a marketing promotion.
If you offer gift cards be sure to cover all your marketing channels when spreading awareness. And be sure to actively promote your gift cards not only to shoppers, but to other businesses as well.
Not all merchants pursue business-to-business gift card sales, but those who do significantly increase their gift card revenue. And considering that more than 70% of consumers spend more than the value of their gift card and buy larger ticket items, it makes sense to go after business-to-business gift card sales.
One way to encourage businesses to purchase gift cards from your company is to offer discounts or other incentives for bulk orders. And be sure to actively market your gift card program prior to the holidays when businesses are planning employee gifts.
If you want to learn more about the benefits of a gift card program, start here.