Gift cards are more popular than ever, with sales of physical gift cards having increased post-pandemic. From fashion and cosmetics to subscriptions and experience days, whatever your business model, gift cards are a fantastic way to boost revenue, build customer loyalty, increase online and in-store traffic and grow your business. Here are just four of the benefits for business…
1. Boost revenue
There are a number of ways in which gift cards can boost your revenue:
- Initial spend – for those buying a gift card, according to the UK Gift Card & Voucher Association, 80% of consumers are willing to spend more on cards and vouchers than on actual presents.
- Additional spend – for those using the gift card, well over half of consumers spend more than its value, seeing the gift card itself as ‘free money’. Outstanding value on a gift card may also encourage multiple shopping trips and more chances to boost sales.
- Higher ticket items – gift card users are more likely to buy higher-priced and full-price goods.
- Unused spend – millions of pounds go unspent on gift cards each year in the UK alone, with some purchases not reaching the value and others cards going completely unused. For you as the retailer, this represents practically pure profit.
2. Increase traffic
Gift card sales involve twice the number of shoppers than other purchases – the customer buying the card and the customer spending the gift card. This not only doubles the traffic but has the potential of attracting new customers, audiences and age groups to your business, for example, with younger cohorts showing a higher propensity for gift card purchasing and giving.
“Over half of all those receiving a gift card over the past three years have been introduced to a new brand or organisation via this format.”
State of the Nation ‘22, Top 10 Takeaway – GCVA
3. Build customer relationships
As well as attracting new customers, gift cards can generate and strengthen brand loyalty, particularly when used in tandem with loyalty and reward programmes. They also offer businesses a means of resolving disputes or customer dissatisfaction.
4. Raise brand awareness
A great benefit of gift cards is their marketing potential for your business. They are a visual representation of your company (with brand, logo and colour matching) often displayed at point of sale, reminding customers about your business. They are also a physical manifestation of word of mouth, with satisfied customers able to share their love of your products with friends and family.
Gift card printing from PCS
We offer range of ‘green materials’ including ‘100% Recycled’ or ‘Eco-Degradable’ PVC as well as ‘Paper-Board’ and work with many big brands, from The Works, Fenwick, Coop and Oliver Bonas. Get in touch or browse our website to find out how we can help gift cards work for your business.