Create A Store-Branded Gift Card Program-It’s Like A Gift To Yourself

It’s Gift Card Season! If you don’t have a gift card program that allows you to offer unique, store-branded gift cards to your customers, you’re missing a huge opportunity.

This year, the holiday buying season is coming earlier than most years due to lingering Covid-19 challenges. Normally, Sept, Oct, and Nov are the three biggest gift card purchasing months of the year. And this year is no different, just more amplified. Covid challenges forced people to change shopping behaviors, catapulting online buying to record numbers and turning gift card purchases into an industry.

In fact, gift card sales account for about $160 billion in sales annually. And 50% of all gift card sales happen during these three magical months. 

Sure, you already accept Visa/MasterCard and other open gift cards as a form of payment. But how can you be sure to capture your share of those sales? How can you use gift cards to increase customer engagement and loyalty and increase market reach?

In this article we are going to discover some compelling statistics about just how popular gift cards are with today’s consumers. We’ll reveal how your business can benefit from jumping on the bandwagon. And we’ll show you how to set up your own uniquely branded store gift card program so you don’t miss out on the biggest purchasing quarter of the year.

Consumers LOVE gift cards and you should too.

How much do people love gift cards? According to Giftcardgranny.com, gift cards remain one of the most requested presents for more than 10 years in a row. In fact, nearly every single American, 93% of people surveyed, say they have either given or been given a gift card at some point. 

Gift card sales experience a steady increase every year, but during the Covid pandemic, gift card sales jumped by 50%! And doesn’t look like it’s going to slow down anytime soon, what with Millennials and older Gen Z gaining more and more buying power.

Per Retail Dive, 47% of Millennials and 51% of Gen Z admit to buying gift cards at least every 3 months. They're also particularly fond of digital, e-gift cards. With more consumers staying home, online shopping continues to grow. On top of that, mobile online shopping makes up 72.9% of all eCommerce shopping. This is largely due to Gen Z, who convert twice as much on mobile than any other generation. 

For marketers hoping to stay relevant and capture younger consumers, improving the mobile shopping experience will be a priority. And optimizing their digital gift card options will help them capture that profitable market share.

Jump on the gift card bandwagon.

Creating your own branded gift card program enables you to enjoy a slice of that $160 billion pie, while also satisfying consumer’s need for easy and efficient shopping.

People aren’t coming into stores as much as they used to, so they're less likely to stumble on just the right thing for their loved one. Finding that perfect gift is a challenge online when you don’t know exactly what you want. 

Gift cards are considered the perfect efficient gift for today’s busy entrepreneurs because they’re quick to grab in-store or online. And there are no returns for the giver to worry about. In fact, shoppers allocate 35% of their holiday budget for gift cards. 

When people give a gift, they want the recipient to be happy with what they get. And more often than not, people like to be able to pick out their own present. But typical open-loop gift cards, (think Visa/Mastercard gift card), sometimes have a tendency to give the feeling of “I didn’t know what to get you”. 

However, a branded gift card from a specific store gives an entirely different feel altogether. It conveys a sentiment, it says “I know you, what you like, and I know you’ll love this store.” It is much more thoughtful, more personal.

People who give gift cards really do want to give someone something they want. Your customers will enjoy and be excited about a branded gift card that offers them that.

There are many ways merchants benefit from gift card sales 

In our last article, “How to Maximize Profits During a Challenging Holiday Season”, we talked about unique ways to increase customer engagement. Offering branded gift and e-gift cards is one of the best ways to encourage more consumer-to-store interaction. 

Gift cards help merchants increase both sales and average ticket value. When people are spending “free” money, they tend to spend more. Studies show that when redeeming gift cards, people tend to spend 38% more, on average, than the value of the card.

And they also choose to buy items they wouldn’t normally spend their money on. They’re also more willing to pay full price for items instead of looking for sales. But even more importantly, they also tend to buy more expensive items than they would have if they were spending their own money. 

Gift cards can also increase your store’s exposure. This is a fantastic way to reach new, unique customers. A gift card is a great way for a person to introduce a friend or colleague to a store that they love. You are gaining exposure to customers that may not normally come into your store. 

You can also use your gift cards within your marketing promotions to increase exposure to your store. Use them in non-profit donations and giveaways, customer contests or just to show your customer appreciation. Donating a gift card, in lieu of a store item, for instance, brings that customer into your store. Whereas, after winning or being given a gift, they may have never decided to stop by the store. 

There are many ways store-branded gift cards can be used to drive business in your marketing campaigns. Do you have a customer email list that you’d like to send a promotional card to help drive them into the store? Or, maybe you prefer mobile marketing and would like to start a text messaging campaign. Branded gift cards are basically walking billboards for your business, so the marketing opportunities are endless.

A store-branded gift card program encourages more repeat business

Gift cards bought in your store and redeemed in your store have the potential to bring in more repeat business. And repeat business generally morphs into new loyal customers. 

Simply having eye-catching gift cards out in the open and available for people can increase your sales. People are 30-50% more likely to buy a gift card from your establishment when you have a well-placed gift card program over paper gift certificates.

People buy gift cards out of convenience. You know your customer likes shopping with you, after all they are in your store. But they may not even know or consider that you sell gift certificates. However, when your gift card program is proudly displayed in your establishment, it gets them thinking.

You basically have two customers for every gift card sold. The giver is already in your store shopping when they decide to buy a gift card for someone. Most of the time, they will end up getting something small for themselves while buying the gift. 

When the gift card recipient comes in to redeem their gift, you have the opportunity to turn them into a repeat customer. And it won’t be very hard! Over half of all gift card recipients end up visiting the business more than once to deplete their gift card. The more often they are in your store, the more opportunity they have to fall in love with what you have to offer. And the more likely they are to think of you when it comes time for them to consider a gift card for someone else.

E-gift cards offer more convenience and more opportunity

Many consumers would prefer to be able to store their gift cards on their phone, but no one more than up-and-coming Gen Zs. Both Millennials and Gen Z like to shop online for their goods. And as we pointed out already, 73% of all eCommerce shopping happens on a mobile device. They want to shop wherever they are, on the device that's in their pocket. So it stands to reason they’d also like to access their gift wherever they are and on that same device. E-gift cards are a perfect way to maximize eCommerce profits.

Offering gift cards in your store will increase sales in the store. Adding the option for e-gift cards increases your sales everywhere. Digital gift cards are convenient and inexpensive to implement, and they’re also more secure than physical cards.

Lost or unused gift cards amount to millions of dollars in unspent gifts. While this still represents revenue for business, it does not make the consumer happy. E-gift cards, or virtual cards, can’t be lost or stolen. They’re purchased conveniently on your website and can be stored in an online account or mobile wallet. The customer can spend them however it's most convenient for them. They can print it out or present it directly from their mobile phone. This way the recipient can spend with you but doesn’t have to worry if they left the actual gift card at home. 

Gift card programs can also be integrated with current memberships or rewards programs. Customers can easily access gift card values from right within their account or rewards app. 

E-gift cards are also an easy way for gift givers who may live in a different town or state to give to their friends and family. They can purchase an e-gift card online and have it sent directly to their giftee. Making sure your gift cards are available for purchase electronically, online means even more opportunities to expand your market.

If you don’t yet offer personalized gift cards for your business, you are missing out on a plethora of income opportunities and benefits.

It’s never too early to get your gift card program going

Running your own store-branded gift card program ensures that you will capture a portion of the $160 Billion dollar industry. And it ensures that more gift card redemption will have new customers walking through your door! 

You will enjoy the ease of bookkeeping too. Your back-end office includes robust reporting tools, including detailed activation and redemption reports. No more manual tracking of the gift certificates you have handwritten. Automatic reports will tell you exactly how much you have sold and how much you still have out there waiting to be redeemed. We can even create custom reports, just tell us what you need. Detailed demographic data can also be stored, allowing you to create and target your marketing to a specific demographic.

This information is vital in helping you create a relationship with your customers. What if you were able to reach out to a customer who has yet to use their gift card and remind them to come in? Would they appreciate such personal service? Of course they would.

Your personal store gift cards- what to consider.

This is gift card season! You don’t want to miss the boat. 

To begin, start considering the graphics you want for your cards. This is your brand, and brand recognition is what separates you from all the others. Your brand is how customers identify with you as a business, so you want your cards to look like your business and carry that brand in a simple to recognize way.

Another thing you need to take into consideration is how you will display them. How will you let customers know about the gift cards and tempt them to buy one? There are a number of display options, including card stands, flyers and signs to help you make them more noticeable to your customers.

Gift card programs are relatively quick and easy to set up, so there's no better time than now. We can have you offering gift cards to your customers in just a few days. That way you can take advantage of this year's gift card market. Meanwhile, we can start designing your custom graphics for uniquely branded cards. It can take several weeks to create your custom graphics and receive your gift cards. The sooner you start the process, the sooner you’ll be in business.

Gift card programs are a great way to increase sales, expand your reach and attract new customers. MonerePay has everything you need to get started with your own personal branded gift cards. Don’t hesitate any longer! The biggest gift card buying season of the year is already upon us!