How gift cards can help your business thrive

When 50% of consumers say they are interested in buying gift cards, you listen! Businesses today cannot afford to miss out on the growing demand for gift cards.

Published on 2023-08-10

If you look at statistics, the numbers don’t lie: we are a generous bunch. Of every 10 dollars spent, $1 is for a gift. Precisely because we like making others happy, we tend to go out of our way to please the person we want to celebrate. In that sense, gift cards are becoming increasingly popular because they allow for choice. According to, 55% of people’s yearly gifting budget will be spent on gift cards and 50% of consumers express their interest in buying gift cards. Consumers are happy with gift cards, so businesses should be happy too.

Here are some of the main reasons why offering gift cards can help your business.

1. The gift of loyalty

Every business knows how valuable it is to have clients who consistently choose and support their product or service over others. The measure of your clients’ attachment and commitment is crucial for the long-term success of a company, as it can lead to repeat purchases, positive word-of-mouth marketing, and increased brand advocacy. Gift cards can be a bulwark for your business because they can help you retain your clients based on rewards. For example, you can offer better deals and discounts for gift cardholders. You can also show your appreciation for their purchases by giving them gift cards based on their spending or as a birthday gift.

Little gestures like that can ensure consumers will consistently choose your brand over others. When you give your client a $10 gift card after they’ve spent $100, you create a win-win scenario because you are building a relationship while bringing in more money. Reports show that the average consumer spends $59 more than the value of the gift card.

2. The good word

For any business, word-of-mouth marketing is a dream come true, as it is a passive strategy that allows you to reap the benefits of your client’s satisfaction. In that sense, gift cards are a very efficient marketing tool because your clients are the ones bringing new business through gift cards.

By offering gift cards, you are harnessing the power of personal recommendations and referrals to promote your business. Word-of-mouth marketing is considered highly influential and effective because people often trust recommendations from friends or family more than traditional advertising. A consumer might never have acquired a product from your brand if it were not for a gift card.

3. Making the most of seasonal trends

The revenue any retail business brings fluctuates throughout the year. However, brands must be on the lookout for a boost in their earnings based on seasonal spending. Gift cards are a great compliment to any other marketing strategies used to attract consumers during special events. Christmas, Mother’s and Father’s Day, Valentine’s Day, and Back-to-School season are all great opportunities to capitalize on the surge in spending.

Consumers display changing preferences, behaviors, and needs during different times of the year, and businesses must tap into those patterns to offer services tailored to their clients. Themes gift cards, for example, can attract business and make the most of the changing seasonal trends. Apart from the big events that fit all like Black Friday, and depending on the nature of your brand, you can find dates in the calendar where events seem to fit your demographic best and issue marketing campaigns for gift cards that will boost your sales.

4. Smooth buying experience

Gift cards add another layer to the ways consumers interact with your brand. What is more, gift cards are perfect for a hassle-free buying experience that will satisfy most consumers. For those who prefer not to spend their time visiting stores, for the last-minute consumers that cannot plan, for the indecisive who are never sure what to get, gift cards create an experience they would recommend to others. With digital gift cards, this passive marketing strategy is versatile and can be easily incorporated into businesses that operate solely through the web, like streaming services.

Forecasts expect the market for gift cards to reach 2076 billion dollars by 2027. With such a promising outlook, every business should consider incorporating this efficient and effective marketing tool.

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