Launching a Gift Card Programme can help you unlock an untapped revenue stream this Father’s Day, as customers continue to give their dads more choice.
Today’s consumers are adopting a more practical outlook towards gifting and gift cards are growing in popularity as more retailers leverage them to grow revenue. Over half (51%) of respondents to a survey by First Data said that receiving a gift card encouraged them to visit a store more often than they would have otherwise.
Research has also found that consumers find it harder to shop for Father’s Day than they do for Mother’s Day. Since 8,8% of holiday gifts get returned, a Gift Card programme saves both customers and your business the hassle – and high cost – of exchanges and returns.
EXPERT INSIGHTS ON SOUTH AFRICAN GIFT CARD TRENDS
According to research conducted by Deloitte, demand for gift cards is growing steadily. While consumers are reducing spend on certain categories of non-essential items such as holidays, entertainment and gift-giving – they tend to allocate a larger portion of their budgets to necessities such as housing, groceries, healthcare, electricity and education.
This trend toward cost-effective gifting is expected to gain momentum. Deloitte attributes this reserved approach to spending for special occasions to the unsteady South African economy. Instead of spending money on an expensive gift for a loved one, consumers prefer to give a gift card so the recipient can choose the item they really want.
LEVERAGE THE ‘LIPSTICK EFFECT’
- Estee Lauder’s chairperson, Leonard Lauder coined the phrase the ‘lipstick effect’ – a phenomenon that sees a positive spike in sales of affordable luxury goods during tough economic cycles – as consumers redirect their spending from large luxury items to smaller pleasures.
- Deloitte explains that during special holidays, chocolates, cosmetics, perfumes and gift vouchers are preferable gifts, as pressure on disposable incomes rise. It’s therefore an ideal opportunity for you to launch a gift card programme.
Gift cards are not only for big retailers. Thanks to easy-to-use advanced digital technologies, independent retailers can now easily launch their own Gift Card Programmes to compete with big retailers’ gift offerings without having to invest in expensive software, hardware or admin infrastructure.
Consumer goods store gift cards are a definite favourite amongst shoppers, as Deloitte notes, because giving a gift card is a smart way for people to avoid giving duplicate gifts.
Local statistics gathered by Sureswipe show that retailers are seeing the benefit of implementing a Gift Card Programme. Not only do recipients of the gift cards spend between 20% and 50% more on their purchases, but some even opt to reuse their cards, recharging them with credit to shop some more.
Using Sureswipe’s Gift Card solution means you’ll also gain access to an online data capture system that makes generating reports simple. To keep marketing costs at bay, you can also send SMS and email marketing alerts to customers on your Gift Card database from this online portal.
Make your cards sought-after. Starbucks famously released 5000 limited edition gift cards in the USA made from stainless steel, costing USD450 (R5000) each, loaded with USD400 in credit. The cards sold out in six minutes, generating USD2.25-million worth of gift card sales in 360 seconds.
4 BENEFITS OF RUNNING YOUR OWN GIFT CARD PROGRAMME
According to Investopedia, gifts cards are proven to attract new customers and can help independent retailers like you to grow your revenue in new ways:
- More and more South Africans are increasing spend on gift cards
Sureswipe’s research on gift card usage shows that 18% of the money spent in retail environments during the holiday periods and special occasions comes in the form of gift card swipes.
- Sell more full-price items
Investopedia adds that consumers using gift cards are 2.5 times more likely to pay full price for products. New shoppers often won’t hesitate to visit your store for the first time when using a gift card. Retail experts say that consumers with gift cards are less likely to hunt for bargains or wait for sales to spend.
- Make more than the card value
Did you know that approximately 80% of all gift-card-shoppers spend more than the face-value of the gift card? Research by Sureswipe shows that consumers who go to a particular shop with a gift card can end up spending 20% more on their purchases.
- Foster loyalty and increase spend
A percentage of your consumers will also opt to reuse their gift cards – recharging them with more credit to use for future purchases.
HOW TO SET UP YOUR OWN GIFT CARD PROGRAMMES
- Think of gift cards as valuable, low-hanging fruit that’s ripe for the picking. A Gift Card Programme can help you attract new shoppers, boost sales, encourage repeat visits and ultimately strengthen your turnover.
- For a low monthly fee, Sureswipe will provide you with a Gift Card pack starter bundle and we’ll help you launch and manage your own unique Gift Card programme – including design and provisioning of cards as well as point-of-sale merchandising to promote your Gift Card programme.
THE SURESWIPE GIFT SOLUTION
Signing up is simple and we’ll help you to set-up your Gift Card programme instantly. We’ll also custom-brand your gift cards and provide you with the promotional material you need to endorse your programme. All the supporting tools you need to manage your Gift Card programme are available online and you’ll receive training on how to use the platform correctly.
STEPS TO PURCHASE A GIFT CARD SOLUTION FROM SURESWIPE
Step 1: If you already have a Sureswipe card payment solution, we can quickly help you kickstart your Gift Programme.
Step 2: Simply contact Sureswipe and speak to one of our solutions consultants for more information on our Gift Cards for your particular business needs.
Step 3: Once you’ve signed up for Gift Cards, you simply send us your logo or preferred artwork and we’ll design your cards. You’ll get to approve the cards to ensure they align with your brand identity.
Step 4: Sureswipe will send your approved designs for card printing which should take around 7 to 10 days to produce.
Step 5: We’ll get in touch with you to arrange delivery of your new Gift Cards and to provide training on how to load credit on to them via your Sureswipe card payment device.
Step 6: You’re ready to plan your Gift Card launch party and promote your unique offering to customers.
Click here to create your own unique Gift Cards and start generating more revenue today.