Connected Commerce

The Importance of GIFT Cards During the Holidays

By November 14, 2017 No Comments

The weather outside is frightful, and with the cold comes preparations for the holiday rush. That’s because the majority of US retailers say they get 20% or more of their annual sales during the winter holiday season. During the upcoming frenzy of gift giving, the value of a gift card program cannot be overstated.

Everywhere you look, people are giving and receiving gift cards. As a matter of fact, over half of all consumers purchase them, and the average consumer purchases at least two gift cards during the holiday season. The bottom line is that gift cards are an easy way for retailers to make money.  Here are some of the obvious benefits of offering gift cards and how Monetary can help.

Paying Full Price

A customer shopping with a gift card is 2.5 times more likely to pay full price for an item and is less likely to price shop, bargain hunt, or wait until products go on sale. Monetary’s GIFT platform is evolving beyond plastic with electronic gift cards, mobile, online and/or in-store solutions. This is great for retailers since digital gift card sales are estimated to reach $15 billion this year. Younger consumers between the ages of 18 to 24 are especially interested in keeping gift cards on their phones.

Spend Over the Value

Gift cards encourage consumers to spend more than the face value of the card. In fact, 65% of people wind up spending an extra 38% beyond the value of the card.

Monetary can accommodate gift card orders of any size with custom design, full-service fulfillment and delivery. Now is a great time for merchants to complement their in-store products with Holiday display stands and gift card sleeves designed to grab attention. By this time of year retailers should already have a large inventory of gift cards ready, but if they don’t, we are ready to make rush orders.

New Customers

People often give gift cards to encourage their loved ones to try a new restaurant, store or experience. This brings merchants many new customers with guaranteed money to spend. If they can convert those new consumers into long-term customers, they’ve gotten far more than the initial value of the gift card. Monetary’s GIFT platform can do just that – GIFT works seamlessly with ENGAGE (Loyalty, Offers, and Marketing Automation) transforming your gift card program into a comprehensive marketing system.

People love gift cards. Actually, they have been the most requested holiday gift for nine years in a row, and the total volume of gift cards is projected to reach $160 billion by 2018. Monetary’s cutting-edge, multi-channel gift card software can help your business tap into this booming market and go farther during the Holiday buying bonanza.

Learn more about how Monetary can help your business succeed!

Sources:

https://www.giftcardgranny.com/statistics/
http://www.investopedia.com/financial-edge/1010/why-retailers-love-gift-cards.aspx
https://blog.adroll.com/trends/holiday-retail-sales-growth-in-the-us-explained-in-5-graphs