You’ve read all about how booming gift cards sales are, a $100 billion business, and seen the numbers that attest to gift cards’ popularity with consumers.
But you’re still not convinced to offer them to your customers yet.
You may be wondering if your gift card program will be successful.
Looking at the findings of a *gift card survey there are some facts that can tell you why and when and with who your gift card program will be successful.
Firstly your customers will most likely want a gift card during the holiday season and for birthdays. 70% of survey respondents said they would buy a gift card as a birthday present and 64% said they would buy one as a holiday present. Those of your customers who are gift card buyers are also gift card recipients with 96% of respondents stating that they had bought and received 4 gift cards in a year. And finally a lot of gift-givers may not make purchases at your location if you do not offer a gift card as 1/3 of all gifts purchases are gift cards.
Here we get inside gift-givers’ minds to explain why your customers are expecting you to offer a gift card program, especially in a mall environment at your physical store locations.
1) Lack of time –In today’s time-sensitive environment busy consumers are increasingly turning to gift cards as an easy to get, easy to give gift option. E-gift cards, such as the ones provided by Givex, are also a popular option among harried gift-givers as they can be easily bought from any device and emailed right away to the recipient. Around Christmas time e-gift card sales spike when purchasers realize that even Fedex won’t get a physical gift to recipient on time. If you have customers who are short on time, and you most probably do, then you could be missing out on their business when they buy gifts.
2) Budget consciousness –Many gift givers find that buying gift cards lets them choose a precise amount they want to give and helps them stay within their budget. You can make gift cards available at fixed denominations i.e. $5, $20, $50 and even flexible denominations so the purchaser can choose their own custom amount.
3) Popularity –Gift cards are very popular. In 2014 it was a $100 billion business. Gift recipients want gift cards and hope to receive them when it is a time to expect a gift. This desirability of gift cards leads many gift-givers to give gift-receivers what they want.
4) Giving a wanted gift –We’ve all received that ugly sweater or chintzy piece of decoration. No one wants to be the gift-giver that disappoints. Consumers see gift cards as a way to give their loved ones and acquaintances a gift from a brand they know is preferred and buy exactly what they want. Alternatively it is also a great way for customers to share a well-loved brand with their friends and family, letting them know about a brand they themselves love. Also consider that fashion is subject to size, fit and style while spa services, sporting events and concerts depend on the recipient’s schedule. As such these types of gifts are risky to purchase. However these business verticals have all seen massive increases in gifting purchases once they launched their gift card programs which made their products easily giftable!
These are a few of the motivations and preferences of gift-givers and most likely your customers when it comes to gift giving and gift cards. Do not fall behind your competitors who already offer a gift card program or disappoint otherwise loyal customers who want to give a gift card from your brand to their loved ones. Get your gift card program going with a trusted provider such as Givex.