Gift Cards Expected to Exceed $6 Trillion by 2022

Gift Cards Expected to Exceed $6 Trillion by 2022

The average consumer is spending $59 more than the original value of their Gift Card, up $21 from 2017, according to the 2018 Prepaid Consumer Insights Study released by First Data (NYSE: FDC)  Despite the set value on a gift card, 72% of customers report spending more than the given amount on their card.

Offering gift cards allows a company to attract new customers, increase brand awareness, improve sales, and reduce fraud. Total retail sales in the United States were projected to amount to 6.03 trillion U.S. dollars in 2022, up from around 5.4 trillion U.S. dollars in 2018.  Often, businesses overlook the benefits of integrating gift cards into their companies.

Attracting New Customers

Gift cards are incredibly useful in attracting new customers.  They continue to be the number one gift given, therefore introducing new customers to your business.  Also, these Gift Cards serve as an incentive to purchase something your customer may not typically seek out.

Increasing Brand Awareness

Providing customers with Gift Cards increases your brand awareness, as well. As gift cards are purchased and given to others for holiday or birthdays, your brand will be introduced to a new audience. 93% of consumers will either buy or receive a gift card; also they are the #1 most requested present during holidays.

Marketing Your Company

Customizing your Gift Card serves as a self-marketing tool. Your logo is displayed in your customer’s wallet and viewed often.  Not only will this prompt customers to revisit your store, but it will also hopefully turn them into loyal repeat customers.

Reducing Fraud

By offering Gift Cards to customers, as opposed to paper certificates, you will also be reducing your risk of fraud.  Tracking certificates is difficult, and with Gift Card integrations to the new POS Systems, it is now a simple process to monitor.  Using a POS System will deter internal theft and quite possibly reduce the likelihood of counterfeit certificates being produced by fraudsters.   Gift cards electronically monitored with a POS system allows the merchant to verify the initial transaction.  This is also a great way to deal with returns by getting your customer to come back to purchase another product.

With these exploding numbers in the Gift Card industry, what are you going to do to capture your share of this market?  We can help uplift your sales today!

 

The TRUTH About Gift Cards

The TRUTH About Gift Cards

The TRUTH About Gift Cards

If you have ever thought about getting gift cards for your business, there has never been a better time now!   The Holidays are just around the corner and will be here before you know it. The deadline for ordering those gift cards is NOW if you want to reap the rewards this season.  Fortunately, you have another option.  You can deploy gift cards “virtually” through your website, in a requested email link or on your social media site today.   Here’s another great way to market to your last minute customers.

The reason I say there has never been a better time is that, of all the changes that have taken place in the gift card arena. Not only has the cost come down considerably on plastic cards but there is a whole new approach to accepting gift cards in your business. Online sales which will become break sales records again this season.  There are so many wonderful things gift cards can do to build your business.

The advantages:

  • Statistics show that people spend approximately 61% more when using a gift card (Consider your own spending patterns when using a gift card)
  • Gift cards are the #1 gift given during the Holidays
  • Gift cards build brand awareness
  • Gift cards increase cash flow by collecting money upfront for future delivery.
  • Gift cards reduce fraud experienced with paper gift certificates
  • Gift cards can create a great marketing strategy to get someone in your store that normally wouldn’t shop there
  • Gift cards can design a loyalty program for your business, getting your customers to come back time and time again for those perks you offer (Investing in your existing customers is much more cost effective than reaching out for new ones)
  • Sell and send gift cards from your store, mail, text, your website, email or even your Facebook page.  It’s never been easier

Now the disadvantages:

  • There are none

Don’t let this opportunity to increase your sales this Holiday Season pass you by. Invest in your business’s future today!