The Gift Card and Voucher market are estimated to be worth around £6 billion per year. Although the retail and hospitality differ in many ways, Christmas-time is always the same, busy and hectic. With Christmas just around the corner, it’s vital that you start to think about how you can increase revenue in your business.
The most popular Gift Cards are:
- Restaurants – 35%
- Department stores – 33%
- Visa/Mastercard/American Express – 22%
- Coffee Shops – 21%
- Entertainment – 17%
Implementing a gift card scheme can have its benefits all year round for events such as birthdays, anniversaries or weddings, but Christmas seems to be the main time consumers opt for Gift Cards.
According to previous trends, the sale of Gift Cards increases the most through the months of November and December.
You can offer branded gift cards for your business to guarantee additional sales. Click here to find out more about our Gift Cards solutions.
Additional revenue
Implementing a Gift Card scheme into your business can have short- and long-term benefits as far as revenue is concerned.
First of all, let’s look at those gift cards which go unredeemed. Once a consumer purchases a gift card from your business, the sale is made, and you have the money, even though technically, the sale is not earned or complete until the card is redeemed. 6% of Gift Cards go unused, meaning stock levels stay the same and businesses can earn a little extra in terms of sales. Over £300 million worth of Gift Vouchers goes unused in the UK alone.
Customers to your restaurant who are using a Gift Card spend on average, 40% extra than the original value of the gift card. Alongside this, statistics show that 50% of people that receive a gift card will visit again, bringing a new wave of loyal customers into your restaurant with an increased customer lifetime.
Brand Awareness
Word of mouth is still a great way of receiving new customers to your restaurant. We’ve all been somewhere that’s been recommended to us by someone we know, whether we were familiar with the place or not. A branded gift card helps to further incentivise new diners to visit your restaurant these by encouraging people who you have no connection with and have not shown interest in your business yet to check you out! Build brand awareness for your shop or restaurant by offering personalised, business branded gift cards.
Suitable for any recipient
Gift Cards offer an alternative solution to consumers who are stuck between ideas on what to give somebody. The great thing is, they are not resigned to close family or friends. People will often buy a gift card for teachers, colleagues and many others as a much more thoughtful gift than simply giving money. Statistics show that the majority of Gift Cards are bought for people, however, 47% of consumers who will purchase them for self-use.* The 3 main reasons for purchasing a gift card for self-use are; convenience, discounts and to help when budget shopping.**
Quick and Easy to redeem
One benefit of Gift Cards, especially from the consumer’s side, is that they’re quick and easy to redeem. When a customer visits your restaurant, a gift card at the ready, it’s just as simple as taking a card payment. The gift card will have been topped up with a certain amount at an earlier date.
Simple to set up
Setting up a gift card scheme in your business is simple. Get it touch for more information.
GS Systems’ EPOS Solutions offer the ability for your business to create, sell and take business branded gift cards. GS have a vast range of knowledge within the hospitality and retail industries to help you grow your business. We get to know your business as an individual to discover your wants and needs to build the best EPOS package to suit you.
Find out more about how GS Systems can help you utilise Gift Cards in your business today.
Speak to one of our specialists on 0161 483 5595.
*https://www.retailtimes.co.uk/survey-reveals-47-of-uk-shoppers-purchase-gift-cards-for-self-use/
**https://pressreleases.responsesource.com/news/95820/survey-reveals-percent-of-uk-shoppers-purchase-gift-cards-for/
