You’ve seen them over the counter tops in Starbucks when you’re paying for your iced latte, sometimes designed to relevant festive themes throughout the year. You’ve probably purchased one before for yourself, or as a gift to a friend.
You may or may not know this but the demand in the gift card market has been reported to secure a steady increase over the years, with a 10% average annual growth rate.
To put it into perspective, the global digital gift card sales is projected to hit 698.2 billion dollars by year 2024.
But what makes this tool such a powerful one? Let me break down the advantages from both the perspective of a business owner and a customer.
ADVANTAGES TO BUSINESS
Brand awareness
This is a cost-effective way to advertise your brand to consumers. Forget billboards and YouTube adverts, this one stays in your customer’s wallet and silently reminds them to return to your store.
Advanced payment
What happens when you’ve got 10 customers purchasing a $25 gift card each? It only means you’ve earned $250 in advance of their future purchases.
Attracts new customers
Let’s say you give a $25 Starbucks gift card to a friend for their birthday. They’ve no choice but to spend that value only within the premises of the brand. In a way, the gift card has done all the marketing job for you.
ADVANTAGES TO CUSTOMERS
They’re great as gifts
Remember the pain that comes with guessing what your family members want for Christmas? Or buying something you thought they’d like, but they didn’t? Gift cards solves all of that for you. I
t saves time browsing through stores for the perfect gift, and the person receiving the gift card gets to choose to buy whatever they like.
Cashless convenience
Cash is no longer king. Cashless is the way to go. Especially when it comes to digital gift cards, the advantages are endless.
Budget disciplining
Some people need help to be reminded of their budget, and gift cards are a great help.
Need a hand in implementing a digital or physical gift card for your business? Get started here.