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6 Reasons Your Business Should Offer Gift Cards

Posted by Alex Neir on Tue, December 14, 2010 @ 03:29 PM
Gift Card Acceptance
The National Retail Federation (NFR) has recently released a new study that indicates gift card interest among consumers continues to rise. The study reports that consumers will purchase more gift cards this year as compared to 2009. The average amount spent this year is up 4% to $41.48 and it is estimated that 77.3% of all American shoppers will purchase at least one gift card this holiday season.  

Gift cards continue to be one of the most popular and most requested items. With such popularity it is surprising that more merchants don’t offer gift cards at their businesses. This may be a function of the perception of many merchants that only large retailers or big box stores can offer gift cards. This is not true as it is very easy and inexpensive to implement a gift card solution.

So what are the benefits of offering gift cards?

  1. Money Upfront: Money is received upfront with product and service fulfillment at a letter time.
  2. Customer Loyalty: Gift cards ensure repeat business as the patron will likely return to redeem the card.
  3. Increased Customer Base: Most gift cards will be given to friends, family, colleagues or acquaintances, furthering business brand awareness.  Additional patrons give you the ability to build on these relationships and forge future business.
  4. Word-of-Mouth Marketing: Gift card purchases represent an endorsement of your products and services. Most customers that purchase a gift card are excited about the product an service and want others to experience it.
  5. Purchases Above Face Value of the Card: Studies show that customers typically spent more than the face value of the gift card.
  6. Lack of Redemption: Not all gift cards get redeemed which results in more revenue toward your bottom line.

Interested in getting a gift card program started? Let us show you how.

Tags: Merchant Account, GIft Cards, Payment Processing