Sometimes you just don’t have the time or personal knowledge necessary to purchase someone a truly personal gift, and in those instances, nothing beats a gift card. They’re kind of like cash, but not nearly as impersonal, and the convenience they provide for the giver and recipient makes them incredibly popular. But gift cards aren’t just good for your customers, they’re also good for your business, and they can impact everything from customer satisfaction to the health of your bottom line. Below are three undeniable reasons your business can’t afford to ignore these little plastic revenue drivers.
1) Gift Cards Are as Popular as Any Other Form of Payment
Gift cards are ubiquitous, and almost everyone has purchased or received one, meaning they’re a highly familiar and fully trusted transaction method. One study found that 91% of people had purchased a gift card at some point in the past, either for their own use or as a gift for someone else. That’s an incredible statistic that shows gift cards aren’t only familiar; they’re extremely popular. Failing to offer them is failing to provide your customers with a payment method they want to use, and that’s never a good idea in a world where options are a primary concern for consumers.
2) Gift Cards Drive Additional Spending and Revenue
Gift cards aren’t just about providing people with a way to give a gift more personal than cash; they’re also a way to get people into the store – sometimes people who never have or otherwise never would walk through the door. Even when the customer using the gift card is a long-time shopper, additional revenue generation opportunities exist because people generally tend to spend more than the value of their gift cards. In fact, almost 60% of people surveyed reported spending more than their card was worth, meaning stores that offer gift cards will often reap sales well beyond the value at the time of initial purchase. That makes gift cards an important and relatively simple way to boost sales growth.
3) Gift Cards Often Go Unused
From a business perspective, a gift card represents taking payment now for a purchase to be made at a later date. That’s a great deal for the merchant, as the gift card itself carries almost no cost whatsoever. That means that, at the very least, the merchant is generating revenue that can contribute to cashflow immediately with the associated costs deferred well into the future. Beyond mere deferment, 29% of people report receiving gift cards and never using them. That essentially amounts to revenue generated with zero associated cost of goods sold, and while gift cards don’t expire and that customer might come walking through the door someday, the benefit to the businesses in the time in between can’t be overstated.
BAMS is a leading electronic payment processor offering a full suite of gift cards’ and loyalty program solutions. We can provide you with everything you need to start offering your customers the gift cards they want, including professionally designed, fully customizable cards.