Every business should have gift cards—it’s that simple. Many businesses hesitate, thinking that their model doesn’t lend itself well to gift, but in doing so they’re forfeiting a simple, steady revenue stream. Here’s five ways that gift cards benefit a retailer of any kind:

1. Increased sales
This is the obvious but powerful fact about gift cards: Once you sell a gift card, the customer must use that money at your store. But most customers will spend more than just the card’s balance—customers on average spend 20% more than a gift card’s value. Just as importantly, the next time they need a specific item, you’ll be the first place they think of if they saw you had it.

2. New customers
When a friend recommends a new store or restaurant, you may listen, but you aren’t certain to visit. A gift card, though, is a recommendation with an obligation attached—if a new customer receives a gift card to your store or restaurant, they’re nearly certain to visit, look around, and see if they like you. And if they do, they’ll be back many more times in the future.

3. Brand awareness
Your card alone boosts brand awareness. Every time a card holder glances at their wallet and sees your logo, they’ll be reminded of you. Eventually, when the time comes that they need an item, they’ll think of your store first—and that front-of-mind status lasts long after the card is spent.

4. Holiday boost
We’ve all done it – it’s a holiday, birthday, or otherwise, and we’re down to the last minute and need a gift, so we choose gift cards. If a customer comes in on the hunt for gift cards and you don’t have them, you’ve lost revenue in an instant. But it’s not only that—even if you don’t have frequent requests, the mere act of displaying gift cards has been shown to boost gift card purchases. That’s especially valuable as people rush to finish their shopping during the holiday season.

5. Boost loyalty
On average, customers visit a store twice to use their gift card’s balance, and a customer that has already come to your store multiple times is very likely to return. Nonetheless, many customers simply will not use the card, and while it’s unfortunate that you have no new customers, remember that you’ve made money without having to sell inventory—a nice consolation prize in itself. 

Find out more about how gift cards can help your business increase revenue.

Want to learn more about gift cards, or other forms of payments? Browse around our blog, or take a look at these other articles:
The Three Numbers That Show Why You Need Gift Cards
Cayan's VP of Product: Why We Focus on Customer Experience

​​The Top 5 Benefits of Gift Cards

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