The gift card market in the U.S. is growing rapidly. Experts estimate the market was $162.11 billion in 2022 and will likely grow at a CAGR of 19.12% to 388.81 billion in 2027. What’s the motivation for this increase? Gift cards offer a variety of benefits to both businesses and customers. Here are a few key reasons to integrate them into your business to see your sales soar.
Give Cards Give You Instant Revenue
When someone buys one of your gift cards, you instantly earn revenue. You don’t need to account for a reduction in inventory until the person who received the gift card uses it.
Attract New Customers
Word-of-mouth advertising is always effective. When one of your customers gives a gift card to someone they know, the recipient is reminded of your business. Even if the recipient has never heard of your store or restaurant, they will get to know your goods or services when they use the gift card.
Gift cards are also a tool to increase brand awareness by putting your logo and brand on your gift cards. In addition, you can use gift cards to issue store credit and track your success with online reporting.
Increase Your Revenue
When someone receives a gift card, most think of it as getting something for free, and they don’t mind adding in a little of their own money to get exactly what they want. Two of three buyers will spend another 38% over the value of the gift card.
Gift card sales also increase during the year’s end when the holidays arrive. Gift-giving can be a challenge for many people who have multiple recipients with different tastes and interests. A gift card relieves the giver of the responsibility of choosing the right item, making it an easy and convenient transaction. The recipient can do this for them, making the holidays a very active time for gift card purchases.
Gift Cards are Good for Your Customers
Your customers will love using gift cards. They can be easy to pick up in your store or when visiting your website online. Consumers like gift cards because they can help control spending. Buying a gift card puts a limit on the cost of a gift, unlike choosing a gift where the buyer might be tempted to spend more than they planned.
Gift cards are also used for giving gifts to those who are difficult to shop for on special occasions. Rather than spending hours trying to find the perfect gift, the giver can allow the recipient to choose something they can enjoy and get more use out of in the future.
It’s Easy to Set Up a Gift Card Program
It’s simple and easy to set up a gift card program. For example, Simpay provides total business solutions for small and medium-sized companies. Gift cards and eGift cards are two business growth solutions that help businesses such as restaurants, pizza parlors, cafés, retail or healthcare locations, hair salons, and more to increase revenue and create loyal customers.
All you need is a full-featured POS to activate new gift cards and accept gift cards as payment. If the cardholder wants to purchase something that costs more than the balance on the card, the POS will notify the cashier that a second form of payment is required.
If you want an effective way to expand your customer base, increase revenue, and build brand awareness, gift cards are tools that will be good for your business. Once you make them available to your customers, you can look forward to increasing their customer satisfaction and reaping the monetary rewards.