Gift cards leave everyone happy: they require little effort to give and assure happiness for the recipient. A 2016 survey of over 2,000 consumers found that 81 percent of shoppers estimated that gift cards would compose up to half of their holiday purchases.
Gift cards also mean big benefits for business owners. Customers of Square sellers spend 600 percent more on gift cards in December than any other time of the year. WalletHub projects gift card sales to reach upwards of $149 billion in 2017, a 54-percent increase from 2007. eGift card sales are also growing quickly, expected to reach a volume of $14 billion in 2017.
If you’re ready to take a piece of that pie this holiday season, you’re in luck. Square has new holiday-themed gift cards that can help boost your seasonal sales.
Square Gift Cards
Let your customers give the perfect gift — gift cards from your business.
You can give your customers (and their friends and family) something to unwrap with plastic gift cards, which sell in packs as small as 20 cards. There are also eGift cards, which are free to send, giving customers added flexibility to gift your business from anywhere.
Gift cards and eGift cards are fully integrated with your Square POS so they are easy to accept. It also means that you get valuable sales insights, consolidated tracking, and reporting, all in one place.
If you’re ready to boost your holiday sales, there’s no better time to stock up than now, before the holiday rush. A survey by the Retail Gift Card Association (RGCA) found that half of shoppers would be interested in buying gift cards from independent retailers in their communities.
Besides the sales of the actual gift cards, here are a few ways that selling gift cards will benefit your bottom line:
- They bring in new customers. When your current customer buys a gift card for their friend or family member, they may be encouraging a new customer to come in and purchase from you. Or maybe the person receiving the gift is a big fan of your business and asked for a gift card from someone who’s never stepped foot in your store. Either way, a gift card may be the start of a new customer relationship.
- People spend more. A First Data study found that 75 percent of consumers with gift cards spent $27.74 more than the amount on the card in 2016, a 69-percent increase from 2015. It makes sense when you think about it. If you have a $25 gift card, you probably won’t hesitate to buy something that costs $50 — you only end up paying half of the cost. (If you want to learn what the average additional sales from gift cards would be for your business, you can use the tool on our site.)
- They increase loyalty. In the same survey, the RGCA found that six percent of Americans buy gift cards for themselves — with 45 percent of that group purchasing a gift card to qualify for a loyalty deal or discount. Another 60 percent have received a gift card as a reward or incentive. Whatever the reason for using the gift card, they can encourage your current customers to keep returning to your store again and again. No one wants to waste (what feels like) free money.
Once you’ve made the decision to purchase gift cards, don’t forget to let your customers know what options they have this holiday season. Post on social media, join other local businesses to create a gift card co-op, or send email (everyone appreciates a last-minute gift reminder). You can find Square’s email marketing templates for Holiday 2017 here.