The gift card market is expanding. In recent years we’ve seen the popularity of gift cards soar.
“The global gift cards market is growing at a CAGR of 16.2% from 2020 to 2027. Valued at $619.25 billion in 2019, the gift card market is projected to reach $2,076.51 billion by 2027.”- AlliedMarketResearch.com
Day by day the use of gift cards is increasing!
Gift cards make you instant money for your business. This is because it works on the buy now use later model.
Customers pay upfront for the good or service to be used at a later date.
The additional bonus for retailers and service providers in this model is that many gift cards won’t get cashed in. Consumers will either forget they have the gift card or fail to use it before the expiry date runs out.
This means you get to keep the entire revenue from the gift card sale. Additionally, while never paying the service or goods cost.
Gift cards are an ideal gift to give. This is because:
If you’re a business owner, you may find yourself low on gift cards to give your loyal customers. This can be frustrating when you want to show people how much they mean to you. Many business owners turn to the internet to buy and print out gift cards for their businesses.
Using an online retailer to design, customize and buy a stack of printed gift cards seems like an easy option. However, this method of buying gift cards is outdated and will stunt your revenue stream.
Why buy gift cards when you can create your own for free?
In today’s market, you need to be selling your gift cards online.
Buying your gift cards from an online retailer will limit your gift card sales to your in-house visitors.
Maximize your revenue by creating your own gift card store, where you can sell your gift cards online and in-house.
By using a gift card management system, you can create bespoke, personalised and professional gift cards for your business.
Your gift cards will be unique to your business, with your own branding and design to match.
Selling gift cards equal zero profit loss!
When you sell a gift card, the full revenue from that sale goes directly to you. This is regardless of whether the gift card has been spent by the consumer.
In fact, if a customer doesn’t ever cash in their gift card, there is a 100% profit gained. Studies show that 6% of consumers never redeem their gift cards.
This is due to:
Extra spending is also common with gift cards by up to 40%! And an enormous 90% of consumers are willing to spend more than the value of their gift card.
For obvious reasons, gift cards have expiry dates. These include:
Expiry dates enable companies to have better control over when gift cards can be used. This also serves as another profit-making opportunity. Many companies offer a gift card extension option.
For any expired gift cards, consumers can pay a fee to extend the expiry date so they can still use it. This works very well for high-value gift cards.
We give some advice on how to set your expiry dates on gift cards here.
Using gift card services like Enjovia to sell your gift cards is simple and easy.
We do everything for you. All you need to do is set up a store on our gift card selling platform and add your gift card products. It's as simple as that and can be done in a matter of minutes!
Using this system will catapult your sales with our unique features that support digital marketing and sales strategies. Let's look at all the different ways to boost sales...
In this section, we discuss how you can use clever strategies to triple your gift card profits!
Where once gift cards only had monetary value, they now have expanded into the experience economy.
This is where the money is!
Ramp up your revenue streams by adapting your services into gift experiences. This is simply done by creating a package experience around one or more of the services you offer. The hospitality sector is making huge strides in the experience economy. You can buy experiences for spa days, restaurant experiences, hotel stays, activity days and so much more.
Using Enjovia will enable you to create your own gift card store for free in minutes. While you can enjoy a wide range of features that will maximise your gift card sales.
Let’s look at these features:
The best gift card sellers all use promotions to maximise their gift card sales.
Whether you want to use discounts, BOGOF, holiday sales or categorising sales based on a service, you have the flexibility to do so with the Enjovia system.
We have created a flexible back-of-house system that can cater to all of your promotional needs.
With specific user specifications, you can allocate certain staff profiles to create bespoke promotions on certain gift experiences for your store.
With Valentine's Day promotion, you can set all couple-themed gift experiences at a discounted price for a certain amount of time.
Or maybe if you want to boost sales during a dry patch of the year. You can create a discount to appear once a certain amount has been reached in the shopping basket.
A 20% discount will apply at checkout if £300 or more has been spent on gift cards.
Add ons are another crucial way to boost gift card revenue.
An add on is where an option list of adding on extra products or services are available with a gift card.
For an overnight stay gift card, retailers can offer additional add ons. Such as:
This allows the customer to personalise their gift card. While generating extra revenue with each sale with little extra cost to the business.
Gift card redemption is a very important aspect of using a competent gift card system.
Staff at service desks need to be able to identify and redeem gift cards quickly and effectively there and then.
This saves the business on gift card fraud and eliminates the prospect of double servicing a gift card accidentally.
With Enjovia, there is a unique gift card code with each gift card. With a simple click of a button, the redemption feature can either be scanned via a barcode or typed into the system and redeemed. Cashiers can easily see if the card has been used already or expired.
The enjovia system has an in-built analytics and tracking feature that allows you to see the effectiveness of your gift card campaigns.
How did your Mother’s Day promotion go? Did sales increase with the discounts compared to last year? What types of promotions are popular with your customers?
Companies that track their campaigns and promotions can make smart future promotional decisions that increase revenue.
It's all about landing hits.
To make more sales, you need to be driving traffic through to your website.
The Enjovia system is designed around using SEO techniques to appear at the top of Google searches. Enabling you to plug in your most competitive keywords next to your gift card products. This helps you to gain the attention of your audience from their search queries.
For more information on how to make money selling gift cards contact one of our advisors today, we’d be happy to help!