Published by Kevin on July 1, 2015

How Gift Cards Can Improve Businesses


Most corporate-owned stores and chain restaurants carry gift cards for customers, and the emphasis on selling them is enormous because of their overwhelming popularity. In fact, 80% of the top 100 retail businesses in the US claim that gift cards are their top selling item. Because of their ability to generate sales, the number of small and medium-sized businesses implementing gift cards is growing.

Benefits of Offering Gift Cards for Customers and Business Appeal

One of the main reasons gift cards are so popular among consumers is because gift ideas aren’t always the easiest. Even close family members aren’t always sure what to get each other for their birthdays or other occasions, and gift cards are a good fallback to allow people to get exactly what they want from their favorite retailers.

Gift cards can easily expand a business’s customer base without costing them a fortune. When purchased by customers, gift cards immediately transfer cash to the business, even though it may be months before the recipient actually seeks a product or service.

In addition to making purchases easier for customers, gift cards can also serve as powerful marketing tools for a business. Customers may actually be less likely to seek the products or services of a business that doesn’t offer gift cards, as opposed to competitors who do. Attractive packaging for gift cards can also enhance sales, serving as gift wrapping for customers, and thus increasing their perceived value.

Gift Cards Can Increase Overall Sales

When customers purchase gift cards, it qualifies as an immediate sale for the business offering them, but the average customer spends slightly more than the amount of money charged to the gift card.

While it’s perceived as spending less to the gift card recipient, this additional spending translates to upselling for the business.

For example, if a customer would normally spend no more than twenty on a product, they may be inclined to spend all of the money on a $20+ gift card along with $10 or more of their own cash on a more expensive product, viewing it as a significant discount.

Get Creative

Companies can get creative with gift card design and packaging, encouraging the sale of this increasingly important product. Even employees often appreciate gift cards from their employers as incentive to be more productive in the workplace, expanding gift card programs beyond the average customer. There are also companies that sell custom gift card holders, which can enhance the experience when receiving a gift card as a gift.

With these benefits in mind, small to medium-sized retailers should consider implementing a gift card program as soon as they can, with original and creative designs to appeal to customers.


  1. admin
    May 13, 2016 - 8:30 pm

    This is really good.

  2. bomb it 7
    May 20, 2016 - 5:59 am

    It’s hard to come by knowledgeable people in this particular
    topic, however, you sound like you know what you’re talking about!


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