Attention Retailers: Gift Cards Remain Popular and Effective
Dec 21, 2014
Gift cards have proven extremely effective in attracting new customers, expanding brand awareness, and driving incremental revenue. Creating a prepaid gift card program is more than just a novelty: it’s big business.
Plastic Gift Cards Continue Upward Trend In Sales
According to the 2013 First Data Consumer Gift Card Study, consumers continue to favor gift cards, buying more of them, spending more than their balances, and visiting stores more often. Among other statistics, the study points to 41 percent of respondents having visited a store they would not have otherwise gone to because of the receipt of a gift card, and 59 percent having visited a store more frequently because of a gift card.
Gift card sales are promising in and of themselves, but the real value may lie in their effectiveness at bringing in new customers to retail establishments, and encouraging repeat visits and purchases. This kind of brand loyalty is extremely valuable, and is created at a fraction of the cost of traditional marketing strategies. As an added bonus, the study showed that more than two-thirds of gift card recipients end up spending more than the initial value of the card.
While double digit growth in sales may not continue in the coming decades, gift cards have carved out a substantial place in the market and all signs show they will stay. Maximizing the success of these programs will likely become the focal point of retailers in the future, designing ways to innovate and evolve to keep pace with consumer trends and with technology.
Paired with a loyalty or rewards program, increased brand awareness and participation can help companies spot trends, understand their customers, and project revenue more accurately.
Starting A Gift Card Program For Your Business
Plastic Resource creates customized point of sale plastic gift cards for any business or organization. Your logo and company colors can easily be incorporated onto sleek, easy-to-use, and affordable plastic gift cards.
Diversify your gift program by adding displays, card holders, or loyalty key tags. These items act as more than just consumables: they also provide valuable advertising that you can’t get anywhere else.
