FAQ: How can gift cards boost my business?October 7, 2015
Gift cards are a billion dollar business. According to GiftCards.com, it is estimated that every year, over 90 per cent of all customers will buy or receive a gift card.
Purchasing an ID card printer for a gift card scheme is an easy way to boost customer conversion and increase revenue.
What are the benefits of gift cards?
According to research by CEB, around $124 billion was loaded onto gift cards in the US in 2014.
Although this was down in comparison to recent years, it is estimated that 65 per cent of gift card holders will spend 38 per cent more than the face value of their card.
Utilising a gift card scheme allows you to increase brand visibility and customer retention. In the same way shopping bags act as roaming advertising, gift cards act as miniature billboards that fit snuggly inside a customer’s wallet.
The CEB study argues that by the end of 2015, gift cards will account for 18 per cent of holiday expenditure. They are an excellent and inexpensive way of attracting new customers during the holiday period.
For many enterprises, reloadable cards are good way of building customer loyalty and provide the required stimulus for repeat business.
How will e-commerce affect gift cards?
As we continue moving into the digital age, online gifting is becoming big business.
A survey conducted by First Data found that 81 per cent of respondents were planning on buying more gift cards than they previously had. While 84 per cent planned to purchase the same amount of, or more, digital cards.
These figures reflect the growing trend of digitalisation. But this does not mean plastic cards are a thing of the past. Rather, most plastic gift cards have corresponding online accounts.
By being part of both the physical and digital spheres, gift cards offer businesses better outcomes than other forms of advertising.
Gift cards are an effective way of increasing foot traffic and overall customer spending. Setting up a scheme first begins with printing ID cards. Get in touch with us to find out how.