If you don’t sell gift cards to your customers others will sell them and will take your business with them
You might not know...
Gift Cards; not just for the Holiday Season
Birthdays are the #1 occasion for gift card purchase
The “Spring Holiday Season” includes Mother’s Day, Father’s Day and Graduations
Gift cards capitalize on impulse purchases
Switching from paper certificates to plastic cards can result in 200% growth in related sales because they are more visible and widely publicized everywhere.
Gift card facts and statistics
TenderCard processed gift and loyalty programs for over 36,000 merchants in 2007
In 2007 TenderCard processed approximately 2,000,000 transactions representing almost $100,000,000 in issued and redeemed cards
51% of consumers who receive gift cards spend more than the card’s initial value National Retail Federation (NRF)
53% of consumers want a gift card as a holiday gift Forrester Research
Gift cards make up 31.3% of graduation presents National Retail Federation (NRF)
The gift card industry has grown to be a $35.5 billion industry and will surpass $5 billion by 2010 MarketResearch.com (“Packaged Facts” report 2006)
Loyalty facts and statistics
Consumer spending is 6% higher for companies that offer loyalty card programs (Loyalty Monitor study by Total Research Corp. and Custom Marketing Corp)
Increase average purchase and visit frequency by over 25%
Gift and loyalty can be on one card
Track purchase behavior for marketing purposes
Put stored value to work...
Promotional marketing tool
Ad space costs more than promotional gift cards
Discount cards mailed to targeted customer group
Used as a gift with purchase
Corporate incentives
Sell to companies to use as employee incentives/rewards
Prepaid Vehicle for Recurring Sales
Coffee shops, dry cleaners, auto detail, oil change programs, etc.
Store credits, returns and refunds
Keeps cash in the drawer
Customer appreciation and retention
Reward loyal customers
Turn customer disputes into retention opportunities
Fund Raisers
Sell cards at a discount to schools & non-profits
Budgeting or Limited Expense Account
Use for business spending, gas allowance , etc.
Merchant benefits
Increased sales
Retain full face value – no cash back
Consumers often spend more than the card’s face value
Merchant retains any unused balance (subject to state laws)
Security
Cards have no value until activated
Plastic cards are harder to counterfeit than paper certificates
