What Role Do Gift Cards Play In Today’s Market
Gift cards are not a new idea. You can come upon them in virtually every hardware and department store, restaurant chains, and even many grocery stores are offering them. For the U.S. gift cards are the top selling item for roughly 80% of the top one hundred retailers and it won’t be declining in the near future. Currently, many more small to medium size retailers and leaping on the gift card band wagon.
Small to medium size retailers can profit immensely from implementing a gift card program. They are good alternatives for people who do not know what they should buy for a friend of family member. For the store they offer a somewhat inexpensive way to enhance their exposure. And because the money is taken now and the service or service is given in the future a retailer’s cash flow is immediately raised.
Retailers are also discovering that gift cards are a powerful marketing tool. Consumers may be more apt to shop at stores who issue gift cards versus other businesses that do not. In order to receive its full benefits the program has to have customer appeal and recognition. This is where the importance of gift card packaging comes into the picture. Retailers are using innovative and visually appealing packaging to lift the perceived value of the gift and add to the gift card experience.
Gift cards are great mechanisms for retailers as they frequently increase their overall sales. When a consumer redeems a card they usually spend around 20-40% more than the initial value of the gift card. This will greatly add to a stores bottom line.
Having a card program is one thing but just as important is offering attractive gift card holder selections to consumers. These can assist your program to be separate from competing cards. Customers are now more discerning than ever and are searching for ways to make a gift card look special. Almost all consumers are contemplating ways to make the their gift be more complete. This is particularly true when the packaging is offered on the house. In a study conducted not long ago 84% of those asked reported that they would certainly purchase gift cards if the packaging was also a part of the deal. Many consumers also said they would be willing to buy the packaging given that different options were made available.
Gift card can now be given in all kinds of envelopes, boxes, tins and pouches. Stores are answering by getting more innovative.
If you have ever given any thought to putting together your own gift card program there is no greater time to begin. Consumers no longer view gift cards as impersonal and dull presents. Simply make your packaging as enticing as your cards.
Marcus Miller Band – ‘Rehab’ – North Sea Jazz 2007
