As is becoming abundantly clear by the behavior of all the big box stores, gift cards are BIG money makers! No longer the flimsy paper certificates stuffed into stockings during the holiday season, gift cards are now purchased year round and represent one of the most popular offerings for all gift giving occasions for Canadians! Indeed, Statistics Canada estimates that Canadians spend upwards of $6 billion dollars a year on gift cards, according to PayPal.
This impressive figure alone does not account for the full embrace of the cards throughout the Canadian retail market- the lucrative nature of the cards lies in the behavior of the consumer, especially when merchants get creative!
Fact: Of the $6 Billion spent on cards each year, 21% goes unredeemed- that’s a full $1 billion in essentially free revenue for merchants who make this product available to their customers.
When customers do redeem their cards, 3 out of 4 consumers will spend more than the amount loaded on the card, once again bringing in additional revenue.
The cards can also be used in a number of creative ways to help you grow your business: are you a neighbourhood restaurant or dry cleaner? Consider leaving a preloaded stack of cards in local HR departments or rental offices of apartment building to become THE go-to place in your neighbourhood.
With a fully customized program, you can advertise your services on the front of your cards. A tattoo parlour can turn their cards into walking billboards by decorating them with examples of their art work. Alternatively, you can transform your gift cards into upscale business cards by including all of your contact information in your design. Imagine handing a prospect a pre-loaded gift card in lieu of a business card. That is sure to make an impression!
The prevalence of gift cards has been growing over the past 10 years and shows no signs of slowing down. Want to get your business in on the action? Contact us to learn about the variety of gift card programs that we can offer your business to help you compete with the big guys and continue to grow!