Top 5 Advantages of Gift Cards


Gift cards are the rare marketing tool that incentivizes customers while increasing profit margins. Customers love their convenience and businesses love their high return on investment. Curious about the advantages of gift cards? Read on.

1. Generate Instant Revenue

advantages of gift cards piggy bank

When a customer buys a gift card, they are providing your business with revenue in advance of any product or service sale.

That’s money in your company’s pocket until it’s redeemed, which it oftentimes isn’t.

Unused gift card values, known as spillage or breakage, added up to $1 billion last year!

2. Encourage Customers to Spend More

advantages of gift cards dollars

While promotional discounts and coupons eat into profits, gift cards actually encourage patrons to spend more.

A 2016 survey found that 75% of respondents spent more than the value of their gift card.

A 2014 study found that the majority of gift card users spent nearly 40% over the face value of their cards.

3. Bring In New Customers

advantages of gift cards open sign

Receiving a gift card gives a potential new customer incentive to patronize your business over others. A gift card creates low stakes for a new customer because they have “free money” to spend.

It gets people in the door, which is often the hardest part of making a sale.

4. Gift Cards are in High Demand

advantages of gift cards hand reaching

Gift cards are the go-to gift for those who are tough to shop for. In a rising trend, many gift card purchasers are also buying gift cards for themselves.

Consumers spent over $130 billion on gift cards last year. Demand is high, making it a sound decision to provide them to your customers.

5. Promote Your Brand

advantages of gift cards wallet

You should always take advantage of the opportunity to promote your brand. Showcase your brand identity every time your customers open their wallets.

Now that you’ve learned about the advantages of gift cards, it’s time to take action.

Order gift cards from Valerian today!

Learn about Valerian’s gift card solutions.