Gift cards are the popular choice for holiday gifts as it requires little effort to give and assures happiness for the recipient. Gift cards also bring big benefits for business owners, as 81% of shoppers estimated that gift cards would comprise up to half of their holiday purchases. Furthermore, according to the survey by RGCA, 61% spend more than USD 50 on gift cards during holiday season.
If you’re ready to boost your holiday sales, it’s time to stock up before the holiday rush. A survey by the Retail Gift Card Association (RGCA) found that half of shoppers would be interested in buying gift cards from independent retailers in their communities.
In addition to raising the sales, selling gift cards can benefit your business in the following ways:
Gift cards bring in new customers. When a current customer buys a gift card for their friend or relative, they are encouraging a new customer to come visit your store and purchase from you. Or maybe the recipient is a fan of your brand and asked for a gift card from someone who’s never heard of you before. Either way, a gift card can bring a new customer.
People spend more. 73% of the customers who buy gift cards will do some shopping for themselves, too and spend more than USD 20 in addition to gift cards. For recipients, a First Data study found that 75% of gift card recipients spent about $27 more than the amount on the card. And it does make sense: if you have a $25 gift card, you probably won’t hesitate to buy something that costs $50 — in the end, you only have to pay half of the cost.
Gift cards increase loyalty. In the same survey, the RGCA found that 6% of Americans buy gift cards for themselves — with 45% of that group purchasing a gift card to qualify for a loyalty deal or discount. Another 60% have received a gift card as a reward or incentive. Whatever the reason for using the gift card, they can encourage your current customers to keep returning to your store again and again. No one wants to waste (what feels like) free money.
If you’re ready to give your holiday sales a boost, ConnectPOS is integrated with Aheadworks’ Gift Cards extension and supports Gift Cards by Magento EE, so you can start selling and taking eGift Cards at your brick-and-mortar stores.
And don’t forget to spread the words about your gift cards to your customers. Set up some signs at your stores, post on social media and marketplaces, join other local businesses to create a gift card co-op, or send emails as a reminder of the upcoming holiday. You can read more on Tips to Promote and Sell More Gift Cards.