How to Manage Gift Cards

In this blog post, we guide businesses on how to manage gift cards effectively. 

Between 2022 and 2023, the worldwide digital gift card market experienced an increase in value from $342.66 billion to $405.17 billion. 

The market predictions continue to expand, predicted to reach $740.41 billion in 2027.

Selling gift cards is among the most effective strategies to enhance your earnings, amplify traffic, and expand your enterprise.

What is a Gift Card? 

A gift card is a transactional, pre-paid card (in a digital, plastic card or paper form) that customers can exchange for a good or service at a specific business. 

There are different names for gift cards. They are also called gift vouchers, gift certificates, gift coupons or gift experiences. 

Types of gift cards

Monetary gift cards vs gift experiences

1. Monetary gift cards

A monetary gift card is a transaction for a specific monetary value. 

E.g. Consumers purchasing a £50 gift card can spend it on goods or services at the place of business for this value. 

2. Gift experience gift cards

A gift experience is a gift card selling a service. Examples include a spa day, hotel stay, dinner at a restaurant or a combination of services to create a unique experience.  

Consumer Shift in the Gift Card Market

As a leader in the gift card market, we’ve watched consumer preference for monetary gift cards get slowly left behind in exchange for gift experiences. 

The GCVA found that post-Coivd, more consumer spending on gift cards is redirected towards leisure spending instead of retail. 

As gift experiences' popularity grows, businesses adapt to consumer preferences. The most successful companies offer unique and memorable gift experiences. 

Managing your gift cards to suit the wants and needs of consumers will place you head and shoulders above your competition. 

Understanding the Revenue Potential of Gift Cards

Recognising the value of gift cards is crucial if you want to learn how to manage gift cards.

Gift cards generate immediate revenue upon purchase and drive additional future sales. 

When customers redeem their gift cards, they often spend more than the card's value, resulting in increased revenue for your business.

Furthermore, gift cards can help attract new customers to your store. When recipients receive a gift card from your business, they get introduced to your products or services.

If they have a positive experience, they will become loyal customers and spread the word about your brand. 

Gift cards can also encourage repeat business from existing customers who may choose to purchase a gift card to give to someone else.

With this in mind, let's reach your gift card revenue potential with proper management of gift cards.

How to Manage Gift Cards Effectively

An efficient management plan ensures your gift card strategy's success. Having a plan will maximise the revenue potential for your gift card sales. 

Look at how this Hotel Resort tripled its gift card sales through intentional gift card strategies. 

Let’s take a look at some of the Enjovia gift card management features: 

Gift card tracking system

Tips for Organising and Tracking Your Gift Cards

To effectively manage your gift cards, it is essential to have a system in place for organising and tracking them.

• Utilise gift card management software: Invest in gift card management software that efficiently tracks gift card sales, redemptions, and balances. This software can also generate reports and analytics to help you make informed business decisions.

• Implement a barcode or QR code system: Use barcodes or QR codes on your gift cards to streamline the redemption process. This will make scanning and tracking gift cards easier, reducing the risk of human error.

• Train your staff: Provide thorough training to your staff members on handling gift cards and the proper procedures for sales and redemptions. This will ensure consistency and accuracy in managing your gift cards. From upselling gift cards to fast redemptions, your staff's efficiency with gift cards will boost your reputation. 

By implementing these tips, you can streamline your gift card operations and provide an excellent customer and staff experience.

How to Manage Gift Cards Store

Managing a gift card store requires careful planning and attention to detail. Here are some critical steps to effectively manage your gift card store:

• Determine the types of gift cards to offer: Consider the preferences and needs of your target audience when selecting the types of gift cards to show. 

Offer a variety of options to cater to different interests and occasions. 

• Provide gift card customisation options: Offer personalisation options for your gift cards, such as custom designs or adding a personalised message. 

Adding a special touch makes gift cards more appealing to customers.

See our post on ‘add-ons’ and how they can help personalise each product. 

• Offer special promotions and incentives: Create promotions or discounts for gift cards to encourage sales. 

For example, you can offer a bonus gift card with the purchase of a certain amount or provide discounts on future purchases when a gift card is redeemed.

• Design and Personalisation: Use a system like Enjovia to change the design, font and branding to align with your branding. 

By following these steps, you can effectively manage your gift card store and maximise sales.

How to Use Gift Cards Strategically to Sell Your Services and Experiences

Gift cards can be a powerful tool for strategically selling your services and experiences. Here are some strategies to help you leverage gift cards to drive sales:

• Create gift card bundles: Bundle your services or experiences together and offer them as gift card packages. This allows customers to purchase comprehensive expertise or a combination of services, increasing the perceived value of the gift card.

• Collaborate with other businesses: Partner with complementary businesses to create joint gift card promotions. This can help you reach new customers and expand your customer base. Collaboration creates unique and memorable gift experiences consumers won’t want to miss. 

• Offer limited-time gift card promotions: Create a sense of urgency by offering limited-time promotions for gift cards. This can incentivise customers to purchase gift cards sooner rather than later.

• Use gift cards for customer loyalty programs: Incorporate gift cards into your loyalty programs to reward repeat customers. Offer gift cards as rewards for reaching certain milestones or to thank customers for their continued support.

By implementing these strategies, you can use gift cards to sell your services and experiences and increase your revenue.

Can Gift Cards Be Tracked if Stolen? 

With Enjovia all gift cards come with a unique QR code. 

If a gift card is stolen, tracking and preventing its use through the gift card system is possible. 

A voucher code is a unique code associated with a specific gift card and can be used to verify its authenticity. 

Gift Card Fraud Prevention

Avoid gift card fraud by implementing the following measures:

• Educate staff and customers: Train your staff to recognise and report any suspicious activity related to gift cards. Similarly, educate your customers about gift card fraud and give them tips on protecting their gift cards.

• Implement fraud detection systems: Use fraud detection systems to identify and flag suspicious gift card transactions or suspiciously high-value purchases. With Enjovia, gift cards have a one-time redemption, preventing a stolen gift card from being used again. 

By implementing these fraud prevention measures, you can protect your business and customers from gift card fraud.

Gift Card Restrictions - Informing the Buyer

When selling gift cards, informing the buyer about any restrictions or limitations associated with the gift card is essential. Helping to set clear expectations and ensures the recipient knows any terms and conditions.

Some common gift card restrictions include:

• Expiration dates: Some gift cards may have an expiration date, after which the card becomes invalid. It is vital to communicate the expiration date to the buyer and any applicable fees or penalties for expired cards.

• Usage Limitations: Certain gift cards may have usage limitations, such as being valid for specific products, services, or locations. Informing the buyer about these limitations can ensure understanding and satisfaction. 

By providing clear and transparent information about gift card restrictions, you can ensure a positive experience for both the buyer and the recipient.

You can find out the law around using gift card expiration dates here:

Conclusion- How to manage gift cards

A gift card management system is the best way to manage your gift cards.

A gift card system such as Enjovia has various features that can help boost the traffic to your online store and improve the design and aesthetic. 

We hope you learnt valuable information from this blog post on how to manage gift cards.

Use Enjovia to take your gift card strategy to the next level with a fully supported management system. 

Increase your revenue and create a free online store in minutes here.