Who still believes that gift cards make “impersonal” gifts? Well, the truth is that many people believe that. However, many MORE people believe that gift cards make the absolute perfect gifts. As Kimberly Palmer of U.S. News & World Report points out, gift card sales have been increasing over the past few years. She writes that the National Retail Federation found that the average shopper spends $163 a year on gift cards, based on a 2013 study.
The number marked a 4 percent increase in gift card sales from 2012. “That’s a new record, and it brings the total gift card market to an estimated $29.8 billion,” reveals Palmer. Retailers in Canada have been enjoying very similar success in selling gift cards. So it’s important to keep in mind just why people like receiving them so much. If you’re into pleasing your customers, you’ll consider selling gift cards to them.
“Gift cards are the gifts that keep on giving — and they give exactly what you want,” writes Zlati Meyer of the Detroit Free Press, “Their popularity is undisputed; the segment represents $31.74 billion in spending, according to the National Retail Federation. Four out of five holiday shoppers plan to buy gift cards, and the average person will spend $172.74 on gift cards.” Based on this finding, it is evident that gift card popularity grew in 2014.
So just how popular will gift cards be in 2015? Given the pattern that has been discovered by the National Retail Federation in recent years, it’s safe to say that gift card popularity is still on the rise. To reiterate Meyer’s point, gift cards give recipients exactly what they want. The supposed “informal” gift takes into consideration that the gift-giver may not know exactly what the recipient has, needs or wants as a gift.
In contrast to the “informal” idea, a gift card can be considered “thoughtful” as it allows the recipient to purchase whatever it is he or she desires. As a business owner, you should consider just how easy you are making the shopping experience on your customers as well. Shoppers who are looking for gifts enjoy the relative ease and simplicity that buying gift cards gives them. Needless to say, they are great go-to items for last minute shoppers as well.
For recipients, gift cards are becoming increasingly easy to use. “The National Retail Federation also points out that gift cards are increasingly accessible via mobile devices, which makes it easier to reload as well as track them,” writes Palmer, “Six in 10 people said they would like to receive gift cards this year, making it the most popular item on people’s wish lists for the seventh year in a row, NRF reports.”
So what types of businesses benefit the most from selling gift cards? Palmer reports that department stores, restaurants, coffee shops, electronics stores and online retailers make that list. And how much do recipients enjoy using them? “Men tend to spend about $20 more on gift cards than women do ($171.35 versus $155.42),” she reveals, “Most shoppers point to the fact that it allows people to select their own gifts as their reason for giving gift cards.”
You certainly don’t have to wait for the holiday season to benefit from selling gift cards to your customers. If you are yet to take advantage of this growing phenomenon, now would be a good time to get started. Contact Canadian POS Corporation at 1-877-748-2884 to order gift cards for your business today! They have long been known to increase sales, attract new customers and encourage repeat business. That is their gift to you!