Did you know that the average consumer spending in the US has increased by 2.5% since Q1 of 2020? According to Census Bureau data, US retail sales in the third quarter increased by 7.0% from the same quarter in 2019.
Judging by those increases, you may ask yourself…”but how?”
There is a complex combination of factors as to why this is the case. For instance, how the economy is doing: how others feel about the economy, average income levels, marketing, advertising, etc. However, one simple reason as to why consumer spend has increased that we know for certain is because of gift cards!
- In the past 6 months have you ever purchased a gift card?
- Were given a gift card?
- Or know someone who had purchased one?
If you answered yes to any of the questions above, you can already understand that gift cards work!
…So if you don’t have a gift card, or you program isn’t delivering, what does gift card do for your business?
Here are 6 major reasons:
- Increases Profitability Providing a gift card option to your customers has proven to be a huge benefit, increasing profitability and cash flow. Customers typically spend way more than the value of the card, so a gift card sale drives additional revenue.
- Establishes Relationships By providing gift cards to your customers, you allow for them to feel part of the community. Gift card is your currency and it’s aconstant reminder of your brand. Gift cards are often purchased for self-use and reloaded. It becomes a key treat or budgeting tool for consumers.
- Low Cost Gift cards create a valuable marketing space for your brand, but also represent a cheaper payment method than credit/debit cards.
- Reduces Returns By offering gift cards, giving the gift recipient a choice, you can reduce the amount of returns on unsuitable gifted items.
- Attract New Customers Gift card buyers buy gift cards because they like your brand. They gift your brand to new customers and those customers become regular customers. Digital gift cards are booming. Open up your business to the lucrative B2B gift card marketplace
- Stay in the Game If you are not maximizing your gift card program, be sure that your competition is. Having a great gift card available ensures your customers are not lured away.
So, why not take advantage of something that’s consistently proven to work? Increase your company's leverage by offering an amazing gift card program.
We can guarantee that with our expertise and analytic tools, we will deliver a great gift card solution and we’ll increase your revenues and customer engagement.
Setup a chat with us today!