Top 5 Advantages of Gift Cards


The gift card is the rare marketing tool that incentivizes customers while increasing profit margins. Customers love their convenience and businesses love their high return on investment.

There’s a lot to love about gift cards with advantages like these.

1. Gift Cards Generate Instant Revenue


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. Gift Cards Encourage Customers to Spend More


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. Gift Cards Bring In New Customers


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


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 for gift cards is high, making it a sound decision to provide them to your customers.

5. Gift Cards Promote Your Brand


Gift cards are an excellent opportunity to promote your brand. Showcase your brand identity every time your customers open their wallets.

Ready to order gift cards for you business?

Learn about Valerian’s gift card solutions.



Author: Chelsey H

I'm Chelsey, the Marketing Manager for Valerian Technologies: Integrated Card Solutions.