Gift cards are great for gift buyers, especially near the holidays when lists can seem to stretch on forever. Simply find the store the gift recipient likes best, select a denomination and either order it online or swing by and pick it up. Gift cards are convenient because they are easily purchased (in store or online), quickly wrapped, simple to ship and always the perfect fit.

The reason consumers love gift cards is a no brainer, but have you ever wondered why nearly every retailer offers a gift card option? We’ve complied a quick overview of the retailer benefits of offering gift cards for their clientele.

1) Customers spend more than the amount on the gift card

In most cases, retailers can count on consumers shopping with a gift card in hand to spend more money than the face value of the card. According to cebglobal.com in 2014, 65% of gift card users spend 38% over the face value of their gift cards.

The gift card functions as a reason for consumers to not only visit your store, but to spend more than they normally would

The use of a gift card can actually increase overall ticket sales. This comes in especially handy following the holidays when sales can have a tendency to stall.

2) Customers are more prone to pay full price when shopping with a gift card.

According to cardcash.com, customers are 2.5 times more likely to purchase a good or service for full price when they pay with a gift card.

That means higher profit margins especially when you consider that consumers typically spend more than the amount that is loaded on the gift card. The combination makes for the perfect situation for the retailer – higher ticket sales on full priced items.

3) Gift cards increase brand awareness

Brand awareness is a measure of your business’s recognition by customers. Gift cards can serve as a great representation and function as a perpetual reminder of your business. My1Stop specializes in professionally crafted gift card printing. Don’t forget to complete the perfect look of your gift card with a gift card carrier. While you are customizing your gift card and gift card carrier, keep in mind that woman are nearly 2 times more likely than men to make a purchase because of design.

4) Not all gift cards are actually redeemed

With the influx of gift giving around the holidays, it can be easy to forget about a gift card received in a Christmas card from out of town relatives or friends. It’s easy to accidentally throw it in the trash or toss it in a junk drawer to be lost forever.

When a gift card goes unredeemed it’s just as good as cash in the bank for retailers. Consumer Reports estimates that nearly a quarter of Americans who receive gift cards during the holidays typically have at least one lying around nearly a year later.

The Bottom Line

From the consumer’s point of view, gift cards are the perfect gift that is never the wrong size and always within their budget. With just the click of a mouse or a quick in and out trip to the store, gift cards are easy to purchase and just as simple to give.  Retailers, on the other hand, love gift cards for their potential both used and unused. From higher ticket sales to straight profit from lack of redemption, gift cards are a vital part of any retailer.

You already know that consumers and retailers both love gift cards. Consumers love them because they are easy to purchase and make great gifts. Retail stores love them for the profit potential and brand awareness (link to other article). But if your business isn’t selling as many gift cards as you would like, we have some great tips to help increase gift card sales.

1) Make your Gift Cards stand out

It’s easy to overlook a gift card display of plain, single colored gift cards that blend in with the background. You can make your gift cards stand out and catch the eye of any consumer by making them unique. My1Stop offers customized gift card printing that will help your gift cards stand out while still remaining professional.

*Pro Tip: Don’t forget to make the display you use for your gift cards stand out. Bright colors, obscure shapes, anything that draws the attention of your clients.

2) Sell packages, not just dollar denominations

For some consumers, grabbing a $25 gift card is a quick, mindless way to grab a gift and get on with their life. But what if your client wants to provide something more thoughtful? Inc.com recommends selling an experience or package rather than a dollar amount.

Consider different experiences you can offer and provide different price points. For example, if you are a clothing store, consider an after-hours personalized shopping experience or a coordinated outfit.

*Pro Tip: Gift cards without designated denominations are exempt from the Federal Card Act stating that non-denominations gift cards are not subject to the federal laws in regards to expiration dates.

3) Provide a digital gift card option to purchase online

According to a press release by InComm, 67% of total gift card sales in December 2014 were digital gift cards (compared to 57% in 2013). With digital gift card demand growing, make sure your business gets its piece of the gift card buying pie by providing a digital options. But don’t forget to always provide the option of a physical gift card that can be purchased in store. Many consumers still prefer to have a physical object to gift to their loved ones.

*Pro Tip: Use digital gift card purchase as a means to grow your email list.

4) Run a gift card promotion

Heartland Payment Systems encourages stepping out of your typical gift card selling methods and trying something different.  Give your customers a reason to buy your business’s gift card over your competitors. Offer a gift with the purchase of a gift card or a discount if you purchase more than one.
*Pro Tip: Start with small promotions to gauge the reaction of your clientele then ramp them up as you observe success.

5) Advertise your gift cards through social media

Online marketing is becoming not only a vital part of promotion but a necessity. If you are new to online marketing, advertising on Facebook is the perfect platform for the novice. Advertising can be a simple as creating a status update about gift cards and then boosting it with the amount that fits in your budget.

*Pro Tip: If you are a local retailer, target your Facebook ads demographically.

Stay Ahead of the Game

Before you act on any of the tips we have listed, make sure you have plenty of gift cards on hand so that you do not run out and miss potential sales. Don’t forget to ensure the quality by having your gift card printing done by a trusted professionals.

Gift cards are great for branding and bringing in new customers but is there a way to get even better results with your gift cards? According to an article on smallbusiness.chron.com, there are four ways to increase gift card usage that you’re likely not utilizing.

Out-of-Stock

When someone is looking for a specific item, nothing can kill a sale as fast as not having the item in stock. A great alternative is a display of gift cards with an estimated restock date. Your customers will be more likely to return to get the item at your store instead of a competitor.

Occasion Specific

Gift cards for specific occasion are a great idea for people looking for a birthday or baby shower gift. Think about the themes of holidays or life events that would have specific gift cards. A pet supply store could have “New Puppy”, “New Kitten” or “New Pet” options. Get creative!

Gift Card Incentives

Offer the purchaser a gift card of their own when they buy a card over a certain amount. Using a gift card twist on a buy one get one, a consumer will be more likely to hit that dollar amount to get an additional card.

Presentation

Make sure you offer more than just an average gift card. Make it easy for consumers to give cards when you provide a custom gift holder or even a gift box and bow.

Whether you’re a non-profit or a trying to earn money to support a certain group, a discount card fundraiser is one of the most effective ways to earn money. The best part is, with proper planning, it’s fairly easy to execute and simple to deliver. According to The Fundraising Authority, there are 5 steps to ensure a successful fundraising experience.

Choose Your Team

In this endeavor, you’ll need lots of volunteers to help with everything from selling the cards to securing donations from local businesses. It’s important to remember that kids who are helping to sell will also need supervision. Also consider who would be a good asset to the team. Kids and parents usually make great salespeople so don’t forget to include them!

Make Your Product Look Professional

Companies like My1Stop work hard to make sure your fundraising cards look professional. This will entice business to donate and it will encourage people to buy the final product.

Know Your Numbers

In order to make sure you’ll be profitable, you have to know how many cards to sell to cover your costs. Once you know this number, you’ll be able to decide how many more you need to hit your fundraising goals. This will also help you decide how many local businesses to involve. If you have more deals on your card, you can charge more. Make sure you always have this equation in mind.

Define an End Time

Create a sense of urgency in your volunteers and in your buyers by setting a defined sales timeline. Otherwise volunteers may become less motivated and your buyers might put off purchasing a discount card until they lose interest. Also you can usually get businesses to commit to a deal easier if there is a defined expiration date.  

Take It to The Next Level

Look for ways to add value to both your customer and your contributors. Offer to add promotional materials like brochures with your cards to help contributing businesses market a special deal or event.

Bonus

Helping your volunteers know how to get donations and make sales can be a huge challenge in the fundraising process. Entrepreneur.com gives a few tips for how to successfully navigate fundraising that can be applied to a discount card fundraiser.

1. Know your donors and your customers. Discount cards are win-win for everyone. Your organization will get the funds it needs, customers get a deal and businesses get more customers through the door. If you volunteers realize this, they will be more committed to your cause.
2. Once your volunteers know the value for everyone involved they will be able to relay this value to the people they are approaching for donation. Business owners and customers alike will be presented with an educated sales pitch.
3. People genuinely want to make a difference in the world. Help donors, customers and even volunteers understand the difference they’re making by supporting your organization.
4. Build a relationship with your donating businesses. Keeping them updated on how they’ve helped your organization will make it easier for them to donate in the future.

To learn more check out our Fundraising Cards page!

We had a lot of fun with our Scrabble competition this week, and received some really interesting entries. 😉  Before I announce the winners, I wanted to say that the winning word was submitted nine times so we had to randomly draw the winner. (Great minds do think alike). Here are the lucky winners:

$50 Amazon e-Gift Card: Sue H.

$100 Amazon E-Gift Card: Gretchen H. (Quantizers)

Thank you all who participated and watch out for our next fun promotion coming soon!

The My1Stop.com Team