Gift Cards Expected to Exceed $6 Trillion by 2022
According to the 2018 Prepaid Consumer Insights Study released by First Data (NYSE: FDC), the average consumer is spending $59 more than the original value of their gift card, up $21 from 2017. Despite the set value on a gift card, 72% of customers report spending more than the given amount on their card.
Offering gift cards allows a company to attract new customers, increase brand awareness, improve sales, and reduce fraud. Total retail sales in the United States were projected to amount to 6.03 trillion U.S. dollars in 2022, up from around 5.4 trillion U.S. dollars in 2018. Often, businesses overlook the benefits of integrating gift cards into their companies.
Attracting New Customers
Gift cards are incredibly useful in attracting new customers. They are the number one gift, introducing new customers to your business. Also, these Gift Cards serve as an incentive to purchase something your customer may not typically seek out.
Increasing Brand Awareness
Providing customers with Gift Cards increases your brand awareness. Your brand will be introduced to a new audience as gift cards are purchased and given to others for holidays or birthdays. 93% of consumers will either buy or receive a gift card; also, they are the #1 most requested present during holidays.
Marketing Your Company
Customizing your Gift Card serves as a self-marketing tool. Your logo is displayed in your customer’s wallet and viewed often. Not only will this prompt customers to revisit your store, but it will also hopefully turn them into loyal repeat customers.
Reducing Fraud
By offering Gift Cards to customers, as opposed to paper certificates, you will also reduce your risk of fraud. Tracking certificates is complex, and with Gift Card integrations to the new POS Systems, it is now a simple process to monitor. Using a POS System will deter internal theft and quite possibly reduce the likelihood of counterfeit certificates being produced by fraudsters. Gift cards are electronically monitored with a POS system, which allows the merchant to verify the initial transaction. This is also a great way to deal with returns by getting your customer to purchase another product.
With these exploding numbers in the Gift Card industry, how will you capture your market share? We can help uplift your sales today!
