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Gift cards have been around for years. You have seen them in all the big stores such as Home Depot, Macy's and Walmart and large chain restaurants such as TGI Fridays. These are such powerful instruments that 80% of the top 100 retailers in the United States say that gift cards represent the largest single selling item for them. Today, more and more small and medium size retailers and jumping on the gift card train.
A gift card program will have undeniable advantages to a small and medium size retailer. They are convenient alternatives for people who do not know what gift to buy for a friend of family member. They will expand a business' customer base with very little investment. And they provide businesses with immediate cash while the product or service is supplied at a later date.
Retailers are also discovering that gift cards are a powerful marketing tool. A retailer that does not have a gift card program in place may be considered less attractive than a competitor offering the service. However, to be effective, a gift card program must be attractive to customers. Creative packaging plays an important role in gift card giving. Retailers are offering creative and visually appealing packagings to increase the perceived value of the gift and add to the gift card experience.
Gift cards are great tools for retailers as they often increase their overall sales. On average, consumers will spend between 20% and 40% than the amount of the gift card. For some retailers, this can translate into significant new revenue.
Almost as important as the gift card itself is the packaging that is made available. Enhanced packaging are a great way for a retailer to stand out so that a gift card does not get lost in a sea of cards. Customers are now more discerning than ever and are looking for ways to make a gift card look special. The packaging plays a crucial role as it completes the gift. This is particularly true when the packaging is available free of charge. In a recent survey, 84% of respondents said they would buy a gift card if it came with free packaging. 55% of respondents said they would buy a gift card if it came with packaging to be purchased and that number went up to 62% if they had options in terms of packaging.
To enhance the overall gift giving experience, consumers are seeking innovative gift card packaging such as pouches, bags, tins and boxes in which to store the cards. Retailers are answering by getting more creative.
Gift cards are no longer restricted to a personal gift to a friend or family member. Employers are discovering the advantages of giving gift cards as a way to recognize or motivate employees. Employees enjoy these gift cards as they often find them more exciting to receive than cash. They are also more comfortable talking about gift card rewards than monetary gifts.
So if you have not yet established a gift card program for your business, now is a good time to get started. Consumers no longer see gift cards as impersonal and boring presents. All you have to do is make your gift cards and packaging appealing.