Are Gift Cards Still a Popular Gift?
During the 2010 holiday season, many businesses noticed a decline in gift card sales. This prompted some business owners and managers to question whether or not gift cards were still a popular gift. While there may have been a slight decline in their popularity, gift cards continue to be a popular choice for gift givers because they’re convenient and hassle-free. They offer several advantages over traditional gifts, including the following:
- Gift cards are suitable for just about everyone. As disheartening as it is for the gift giver, some gift recipients simply may not like or be able to use certain gifts. For instance, gifts of clothing are often returned because they do not fit or the recipient simply does not like them. Businesses lose money each time gifts are returned. This is especially true for businesses that refund cash for returns. Gift cards, on the other hand, minimize refunds because recipients can pick items out by themselves.
- People love receiving gift cards. What can you get your picky Aunt Sue for Christmas? How about for your brother-in-law, Joe, who has just about every product under the sun? What gift can you get for the Secret Santa gift exchange at your office? Simple – a gift card. Contrary to popular belief, gift cards are not impersonal. They enable people to select their own items, so they are extremely popular.
- Gift cards are convenient. One of the most popular choices for last minute gifts is the gift card. Why? Because gift cards are quick, easy, and convenient. Customers are often able to grab a gift card next to the register as they are waiting in the checkout line.
Gift cards don’t only benefit customers. Businesses can reap the advantages of gift cards, as well.
- Gift cards bring in new business. One way consumers demonstrate their loyalty to a particular brand is by purchasing its gift cards for their friends and loved ones. Consumers who buy gift cards at your store will help to bring new customers into your establishment.
- Gift cards generate profits. When consumers use gift cards, they tend to use more than the gifted amount. Studies also show that purchases made with gift cards are 20-50% higher. Furthermore, some people don’t ever redeem their gift cards, allowing businesses to effortlessly increase profits.
- Gift cards provide you with cash in advance. When you sell gift cards, you receive cash in advance of merchandise sales, so there’s instant money in the till.