The Benefits Of Implementing A Gift Card Program
Gift cards are not a unique concept. You have seen them in most the big stores such as Lowes, Macy’s and Target and large chain restaurants like as TGI Fridays. In the U.S. gift cards are the top selling item for about 80% of the leading 100 stores and it is not likely to change in the near future. Smaller retailers are joining in and are beginning to sell their own kind of gift cards.
Small to medium size retailers can profit immensely from starting a gift card program. They are an easy way to give someone a present you know they will love since they are the ones choosing it. They will expand a retailer’s customer base with very little money. And they provide businesses with instant cash while the product or service is issued at a later date.
Businesses are also discovering that gift cards are an effective marketing tool. Consumers can be more apt to shop at stores who offer gift cards over other businesses that do not. In order to receive its full benefits the program has to have customer appeal and identification. Gift card packaging represents an crucial role in gift card giving. Retailers can substantially raise a consumers perceived worth of a card with innovative forms of packaging and presentation.
Gift cards can often have the result of increasing total sales numbers. On average, consumers will spend between 20% and 40% more than the amount of the gift card. This will greatly add to a retailers bottom line.
Implementing a card program is one thing but just as critical is providing interesting gift card holder options to consumers. Enhanced packaging is a great way for a store to be distinct so that a gift card does not get swallowed up in an ocean of cards. It is not enough these days to simply give someone a plain old card. Virtually all consumers are contemplating ways to make the their gift appear more complete. This is particularly true when the packaging is offered free of charge. In a study conducted recently 84% of those surveyed reported that they would certainly buy gift cards if the packaging was also included. However the packaging does not have to always be free as a lot of respondents said that they would purchase it if they were given various options.
To enhance the overall gift giving affair, consumers are seeking creative gift card packaging such as pouches, bags, tins and boxes in which to store the cards. Retailers are answering by getting more creative.
So if you have not yet established a gift card program for your retail location, today is a great time to get going on it. Consumers no longer view gift cards as impersonal and boring presents. Simply make your packaging as tempting as your cards.
Tags: gift cards, marketing