While the convenience of fast, easy and often last-minute shopping, plus increased confidence that the recipient will like and use one’s gift, is of great value to the consumer, it’s retailers who stand to gain the most when a card is purchased and used.
Not only do retailers reap dollars with the initial sale of the card, shoppers often purchase more than the card’s allotted amount. There is also the opportunity to begin a relationship with a new brand – one that will likely drive even more revenue for the retailer in the months and years ahead.
Retailers that benefit the most are those offering gift cards and redemption across all customer touch points - the store, online, through call centers, at kiosks, via the catalog and over direct TV. With the ability to purchase and redeem these gift cards at all purchase points, retailers have a better chance the gift cards will be redeemed for more than the value of the card thus driving future sales to their organization.
What can retailers do to ensure their gift card sales skyrocket this season?
* Have gift cards front and center to ensure they are easy to find – displays at registers, on the web site home page, featured on the catalog cover and available from call center representatives
* Allow shoppers to purchase as well as redeem the cards in their choice of any combination of transaction methods- online, POS, catalog
* Ability to print a virtual gift card off a home computer without any shipping fees
* Clearly define policies on expiration dates and usage fees
“Gift cards are incredibly popular gifts especially during the holiday season. Retailers can build brand loyalty and attract new customers by offering consumers the ability to instantly purchase a gift card and immediately be able to use it across all retail channels,” said Jane Cannon, chief operating officer at CommercialWare. “Retailers benefit with new customers, increased spending per customer sale and more sales at higher margins since gift recipients will often buy full price merchandise.”
