For the seventh year in a row, gift cards are at the top of everyone’s gift list for
gift-giving occasions. According to the National Retail Federation’s 2013 holiday
survey published last October 60 percent of the consumers polled said they
prefer receiving gift cards that let them select their own gifts. Department stores
(40.3%) and restaurants (34.2%) are the most popular gift cards among
shoppers and recipients alike but coffee shops, electronics and online merchants
were well represented too.
This is excellent news for every type of retail outlet and it is incumbent on every
retail company to set up a gift card program to take advantage of this surge in
popularity. From pet salons to dry cleaners, gym, craft store or the specialty meat
market, gift cards can give your bottom line a boost. The statistics on long-
running gift card programs show that gift cards draw new customers to a store,
business or restaurant and the amount spent per customer rises as well.
Regardless of the denomination of the proffered gift card, the consumer nearly
always spends more than the face amount. Even if the sale rings up at less than
the amount of the card, the merchant is the all-around winner. If the tab is
greater, the merchant has sold more than the original amount; if the tab adds up
to less than the card’s value, the merchant gets to keep the money left over on
the card.
While some protest that gift cards are impersonal, their popularity is undeniable.
Rather than taking the easy way out, many gift-givers are looking for gift cards at
specialized stores that cater to their loved one’s unique interests.
Our society is so used to handling credit cards that it isn’t a great surprise that
plastic gift cards have more intrinsic value than paper certificates or even punch
cards. Plastic cards offer a myriad of benefits to consumers and retailers alike:
Produce 30% to 50% more revenue per card
Simple to track (retailer)
Less likely to misplace or lose it (consumer)
More convenient to carry in purses, wallets, pockets, backpacks, phone cases
Sturdy, won’t rip, tear and the bar code remains scannable
Another product or merchant branding opportunity
Makes a good impulse buy item at the checkout
Easy to use, add money or reload the card
For more information about gift cards and how they should figure into your
business, contact Mike Krause at 585-704-6453 or please visit
www.SalesSensePayments.com.