Ten Things You May Not Know About Gift Cards
Jun 9, 2009
When is the last time someone gave you a paper gift certificate? Probably a very long time ago! There are lots of good reasons for this. Gift cards are increasing in popularity because they have lots of benefits for merchants as well as recipients. Though cards are sold in the retail environment, they are also a frequent component in corporate incentive programs. A study from Comdata showed some interesting and useful trends.
- Gift Cards increase revenue - they generate 2 to 10 times more sales than paper certificate programs.
- Purchases made with a gift card are 20-50% higher than the average ticket.
- 53% of card users often or always spend more than the amount originally loaded onto their cards.
- The majority of consumers redeem the entire value of a card, rather than leaving a few pennies.
- 50% of consumers in the study redeemed the entire value of the card in one visit, while those who take multiple visits will visit the retailer 3.5 times.
- They are also most likely to redeem their cards over multiple visits, increasing store traffic and the potential for sales over the value of the card.
- Gift givers tend to spend more when they purchase a gift card than they would on an alternative gift.
- 4 out of 5 people prefer to receive a gift card from a favorite store, rather than a gift chosen for them by the giver.
- Recipients add their own money to the final purchase, upping the original amount by almost 20%.
- Two gift card recipients in ten have become loyal to merchants they had not previously patronized as a result of receiving a gift card.
If you'd like to reap the benefits of gift cards in your marketing, contact us at APTCO for more information.
Did You Know?
APTCO can help you design a gift card program from start to finish. It starts with the objective. Once that's defined, finding the right vehicle is the easy part.
“From what we get we can make a living; what we give, however, makes a life.”
~ Arthur Ashe
The 1912 Olympics was the last Olympics that gave out gold medals that were made entirely out of gold.
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